A PROJECT REPORT ON CUSTOMER RELATIONSHIP MANAGEMENT FOR

(Big Bazaar Allahabad)

BY SHIVAM TIWARI MBA SEMESTER III ROLL NO: 1128470019

PROJECT GUIDE BY "MR. PRASHANT SHUKLA" IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE TWO-YEAR FULL-TIME MBA (MASTER OF BUSINESS ADMINISTRATION) PROGRAMME OF UIT (UNITED INSTITUTE OF TECHNOLOGY) ALLAHABAD

A.Y: 2011 2012

ACKNOWLEDGEMENT
I feel very pleased to acknowledge that I have completed my Summer Training from BIG BAZAR Allahabad. I was with FUTURE GROUP for the past seven weeks and this summer training was an opportunity to observe the organization more closely. It was a great pleasure to be with the organization & learn about its culture, practices, people processes & business activities. A Project Report is never successfully completed without the guidance from appropriate person. So, now it is the right time to express my sincere gratitude towards all those, who have helped me to complete the project. I would like to thank Mr.ANIRUDH SINGH (HR Manager, Training) who has given me the opportunity .whose guidance and support helped me to complete this project successfully. Without their Guidance the work would never have been completed.

And I am greatly to all advisers who helped me knowingly or unknowingly for getting the information and taking interest in my project. I am also thankful to entire faculty and staff of UIT and my guide Mr. PRASHANT SHUKLA, without which this project would be not a successful one. Last but not the least I would like to appreciate my parents who have always motivated me directly and indirectly to do my work with utmost Dedication.

Thanks Date: SHIVAM TIWARI

DECLARATION

I, here by declare that the Project work entitled CUSTOMER RELATIONSHIP MANAGEMENT is an authentic record of my own carried out at BIG BAZAAR, ALLAHABAD as requirement of SEVEN weeks Project for the award of Degree of MANAGEMENT OF BUSINESS ADMININSTRATION IN marketing from UIT under the guidance of Mr. prashant shukla during 15th June to 31st july, 2012.

(shivam tiwari)

PREFACE

It is said that practice makes a man perfect. So, professional study is incomplete without its practical knowledge. In the field of business, theory brief of practice holds no good. Theory provides the fundamental stone for the guidance of practice, but practice examines the element of truth lying in the theory. Therefore, a stand co-ordination between theory and practice is very essential to make an MBA perfect.

Every organization whether large or small faces a lot of problems in absence of adequate knowledge of facts about market. Marketing research as a tool of collection and interpretation of data helps marketing management in getting products more efficiently in the hands of consumers.

Project work is essential part for the partial fulfillment of the syllabus of M.B.A. (Master of Business Administration) course of united institute of technology naini allahabad affiliated to Gautam Buddh Technical University Lucknow. Every management Participants undergoes training for Eight weeks in business organization.

I have prepared this project report during my summer placement at Big Bazar Allahabad.

I have conducted my study under the heading, Customer Relationship Management in Big Bazaar Allahabad.

The whole report divided in to eight chapters, each chapter dealing with different aspect of study. The report is written in a very comprehensive manner that enables the busy executives to have a quick grasp of the contents.

The Fifth & Sixth chapter deals with the conclusions and recommendations, which will certainly be helpful to the company in understanding its strength and weaknesses and getting an edge over them.

I have tried my best to do justice and be honest in analyzing the topic but to error is human any weakness and shortcoming is unintentional. Any comment or suggestion is welcomed.

(shivam tiwari)

TABLE OF CONTENTS

Introduction Objective Industry profile Company profile Trade profile.. Research Methodology.. Data Analysis Interpretation of data. Findings Conclusion Recommendation............................................................................................ Suggestion.

1 3 10 27 55 62 70 72 96 98 99 100

Limitations of study.. 101 Appendices Bibliography.. 102 104

ABOUT THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Changes in customer expectations can be identified throughout the world. Customer relationship management (CRM) strategies have become increasingly important worldwide due to these changes in expectations from customers as well as changes in the nature of markets. Changes have been noted across the world, but opportunities present themselves in South Africa and other developing countries for CRM strategies. Customer Relationship Management (CRM) is a managerial philosophy that seeks to build long term relationships with customers. CRM can be defined as the development and maintenance of mutually beneficial long-term relationships with strategically significant customers. Under certain circumstances it may result in the termination of relationships It can also be noted that the relationship is developed with strategically significant customers, and hence it is necessary for the organisation to determine the nature of the significance. Traditionally this would be done by determining the value of the customer to the organisation, but other criteria that can be used include whether a customer serves as a benchmark for other customers or whether the customer inspires change in the supplier. The implementation of CRM is regarded as desirable by organizations due to the benefits that accrue from these strategies among their customers, such as greater loyalty and resulting profits. The focus of a CRM strategy is the acquisition, retention and overall customer profitability of the specific group of customers.

Acquisition of customers:
this refers to the need of organization to find new customers for their products. This means they are required to develop strategies to attract potential customers to purchase the product. The cost

of attracting a new customer is estimated to be five times the cost of keeping a current customer happy

Retention of customers:
organization also need to focus on existing customers in order to ensure that they continue purchasing and continue supporting the product. Organisations can increase their profitability by between 20% and 125% if they boost their customer retention rate by 5%.

Profitability:
Customer profitability reflects the financial performance of customers with respect to all the costs associated with a transaction Profitability in the case of CRM is determined in the light of the lifetime value of the customer to the organisation, taking account the income andexpenses associated with each customer and their respective transactions over time. In attempting to understand the implementation of CRM programmers, it must be borne in mind that economies differ in terms of their level of development. Two economic criteria can be used in this economic analysis; population size and per capita income have been incorporated into the calculation of per capita GNP and per capital GDP This analysis makes it possible to categories economies as being developed, developing and less-developed. Developed economies are characterized by political stability, highly educated and literate populations, high levels of innovation and entrepreneurship as well as high levels of both industrial and information technology. Lessdeveloped economies (such as Bulgaria, Bangladesh and Ethiopia) have political instability (sometimes political anarchy), government inefficiency, low standards of living and low levels of economic wealth. An emerging market (or developing economy) is defined as markets that are in the process of evolving to becoming developed (i.e. higher income) It is into this category that South Africa can be placed. Developing economies have the following characteristics:

 Improving educational standards, literacy and work skills levels Relatively efficient technology systems Relative political stability and a movement towards market-based economies Rapidly expanding financial services. The characteristics of developing economies as listed above form part of the imperatives for the implementation of CRM. CRM includes the use of technology in the building of databases and the use thereofto develop and improve the relationship with the various markets, including the final consumer. In order to exploit this technology, skills among staff are required. Organisations within developing markets havecustomer information in databases, though many do not have the advanced technology or skills to exploit the information that is stored. This indicates that CRM can be used within developing markets, though organisations will still be required to manage its implementation with care. The answer to this question has to be no. The reason for this is that not all organisations have customer information, which makes the implementation of CRM impossible. Examples of these products include mass products. Further, businesses where there is a high customer churn (where customers remove their patronage) or where there is a low Customer Lifetime Value (CLV) which impacts on the profitability of the organisation are not suitable to the implementation of CRM. These are true, irrespective of the nature of the economic development within markets. It can thus be said that CRM is appropriate for certain organisations in emerging markets. Organisations that can implement CRM successfully are those that have a great deal of information concerning the customer and where there are differentiated needs among the customers. Financial services meet the criteria for the implementation of CRM as indicated by Kotler. Financial institutions have a great deal of information concerning their customers and their needs differ. This means that banks offer different products to different customers. Some customers require a mortgage bond in addition to

their current account and credit card, while for other customers, vehicle financing is more important. The financial circumstances of customers differ, resulting in different packages being offered to customers. It isalso possible for financial institutions to tailor their packages thereby making them customer specific.

OBJECTIVE OF STUDY

Understand customer needs better Maintain long term customer relationship To retain profitable customer. To create competitive advantage

SIGNIFICANCE OF STUDY

Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with customers. Customer relationship management is not only pure business but also ideate strong personal bonding within people. Development of this type of bonding drives the business to new levels of success.

A CRM system consists of a historical view and analysis of all the acquired or to be acquired customers. This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business.

CRM contains each and every bit of details of a customer, hence it is very easy for track a customer accordingly and can be used to determine which customer can be profitable and which not.

In CRM system, customers are grouped according to different aspects according to the type of business they do or according to physical location and are allocated to different customer managers often called as account managers. This helps in focusing and concentrating on each and every customer separately.

The strongest aspect of Customer Relationship Management is that it is very costeffective. The advantage of decently implemented CRM system is that there is very less need of paper and manual work which requires lesser staff to manage and lesser resources to deal with. The technologies used in implementing a CRM system are also very cheap and smooth as compared to the traditional way of business.

Efficiently dealing with all the customers and providing them what they actually need increases the customer satisfaction. This increases the chance of getting more business which ultimately enhances turnover and profit.

If the customer is satisfied they will always be loyal to you and will remain in business forever resulting in increasing customer base and ultimately enhancing net growth of business.

Future group Future group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship company, pantaloon Retail (India) Limited operates over 7 million square feet of retail space, has over 1000 stores of its leading retail formats include, Pantaloon, Big Bazaar, Central, Food Bazaar, Home Town, Ozone, Depot, future Money and online retail format, futurebazaar.com. Future group includes, Future Capital Holding, Future Generally India Indus league clothing and Galaxy Entertainment that manages sports Bar, Brew Bar and Bowling Co. Future Capital Holding, the group s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The groups joint venture partners include Italian insurance major, generally. French retailer ETAM group. Us-based stationery products retailers, staples Inc. and UK-based Lee Cooper and India-based Talwalkars, Blue Foods and Liberty Shoes. Future Groups vision is to, deliver Everything, Everywhere, Every time to every Indian consumer in the most profitable manner. The group considers as a core value and its corporate credo is- Rewrite rules, Retain values.

Different Formats of Future Group

Format -1

Pantaloon Retail (India) Limited, is India's leading retail company with presence across multiple lines of businesses. The company owns and manages multiple retail formats that cater to a wide cross-section of the Indian society and is able to capture almost the entire consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the company operates through 5 million square feet of retail space, has over 331 stores across 40 cities in India and employs over 17,000 people. The company registered a turnover of Rs. 2,019 crore for FY 2005-06. Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that combines the look and feel of Indian bazaars, with aspects of modern retail, like choice, convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a first of its kind seamless mall located in the heart of major Indian cities, followed this. Some of its other formats include, Collection i (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), all (fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launched its etailing venture, future bazaar.com Background: Founded in 1987 as a garment manufacturing company, the company forayed into modern retail in August 1997 with the launch of its first department store, Pantaloons in Kolkata. Listing: Pantaloon Retail is a listed company on the Bombay Stock Exchange (BSE, Scrip Code: 523574) and National Stock Exchange (NSE, Symbol: PANTALOONR).

Format-2 CENTRAL Central, the showcase seamless mall concept is one of the more popular offerings in the lifestyle segment that celebrates shopping in India. During the year, Central capitalized on its positioning of being a destination where citizens can just come and unwind, whether its for shopping for a wide range of national and international brands, enjoying their favorite cuisine at the multiple specialty restaurants and food courts or watching the latest movie releases at the in-house multiplexes. The most reputed brands are showcased in Central. It is also emerging as the destination of first choice for new fashion brands in India. Central assures better visibility, instant recognition, good quality and commercially viable space on the basis of the optimum space utilization concept, taking the brand closer to the consumer. With brands within Central competing against the best brands in the country, it also allows benchmarking for these brands. The coming year will also witness many new concepts being introduced at allCentral malls. Some of these concepts include communications (MPort and Gen M), electronics (E-Zone), furniture and accents (Collection I), fitness equipments and wellness zones, books, music, gifts & stationery (Depot) and fine dining restaurants etc. Some of the new alliances that the group has entered into, like Etam, Lee Cooper and Gini&Jony will also share space within all Central malls.

Format-3 PLANET RETAIL A young and emerging India is also eager to experience international brands. We sensed this opportunity some time back and have built a strong portfolio of international brands through our strategic partnership with Planet Retail Holdings Pvt. Ltd. The alliance with Planet Retail provides access to international fashion retail chains like Marks & Spencer, with 9 stores at present; Guess the US brand that has 12 retail stores currently, and the Spanish brand Womens Secret which is retailed through 2 outlets. Planet Retail also has a multi-brand international sportswear format under the brand Planet Sports. The company is the sole licensee for sportswear brands such asConverse, Spalding and the Athletes Foot the venture has also launched other formats like Sports Warehouse, Accessorize, Monsoon,

Next, and Debenhams.

Format-4 1. Depot This largely untapped unorganized market for books and music with very few players, throws up an enormous opportunity; something that prompted Pantaloon to make its foray through its own format, Depot in 2005-06. Located as stand-alone stores and within most Pantaloons, Central and Big Bazaar retail formats, Depots vision is to be a one-stop shop where customers will find an extensive range of books, multimedia, toys, gifts and stationery, thereby transforming the way books, music, multimedia and gifts are bought, sold and perceived in India. This would be made

possible by the creation of a portfolio of exclusive titles, an Indian experience while shopping and connecting with the mind and soul through different languages, ideas and tunes. 2. Books, Music and Gifts Reading as a habit is ingrained into the Indian psyche from time immemorial. However, it is being increasingly associated with a select few. The company believes that existing formats in the segment offer an intimidating environment that alienates the masses. The company has therefore taken this initiative of launching a chain of books, music and gifts stores that will once again democratize the reading habit in the country. The company believes that with 1.2 billion people, the habit of reading canbecome a strong business proposition. Depot seeks toworkwithcommunities in and around the area where it is located and hopes to attract the entire family to spend quality time together. It is focusing on the introduction of old classics and books in regional languages with an objective to make these affordable to a mass audience.

Format-5 Fashion Station Fashion Station, which represents the companys offering of the latest in fashion for the masses, has met with reasonable success since its launch in 2004-05. These thematic stores that offer the most contemporary in fashion and accessories, is another of the value added propositions that Pantaloon seeks to offer. The aspirational mass of consumers who are bombarded with the latest in style through media penetration, hedonism and peer emulation, need an outlet that meets their requirements of trendy, latest and yet affordable fashion. Fashion Station is positioned to meet their requirements, and thereby take fashion to the masses.

Format-6 Home Improvement Some of the key factors contributing to growth in the housing sector in India are increasing purchasing power increasing number of nuclear families, softer interest rates, easy availability of finance schemes and an overall real estate boom across the country. There is a shortage of more than 33 million dwelling units. With the average age of a homebuyer reducing from 50 to sub-30, 4 million new homes are being bought annually. With every house, a dream is planted to decorate the house. And this creates a demand for furniture, electronics and home improvement products. Modern retail is ideally placed to capture a significant chunk of consumer spend made by a new homebuyer. The market for home dcor and improvement is largely unorganized and hence a new homeowner has to literally visit several markets and stores for meeting his home needs. This was the opportunity that Pantaloon perceived and the reason why it entered the Rs. 90,000 crore home solutions market in 2004-05. With its presence in the modern retail and consumer space, this new concept was an opportunity for the company to leverage its experience and offer the consumer an alternative solution to canalize his consumption needs. In the Rs.25000 crore consumer durable industry, which is growing at nearly 6 per cent every year, E-Zone has already emerged as a force to reckon with. This lifestyle retail format offers a never experienced before environment for shopping for the best in national and international consumer electronic and durables brands. It retails products ranging from music systems to laptops, from the latest plasma television sets to DVD players, from washing machines to airconditioners to name a few. Typically in excess of 12,000 square feet in size, E-Zones are primarily stand-alone concepts, but are also present within the companys Central malls.

Format-7 COMMUNICATION With over 2 billion phone users worldwide, mobility has now become an intrinsic part of our personal and working lives. Mobile operators, cell phone manufacturers, content publishers, wireless application service providers and many other key players in the mobile industry are all working to carve out the best position in the value chain, to find the right place from where they can best serve both their own and their customers needs. En route towards 3 billion phones worldwide, a major shift would occur in consumer interest from carriage to content and from a verbal to a growing visual world. With more mobile cameras sold in 2005 than digital cameras, with more music/video players in mobiles than iPods, with more messaging reach than PCs, convergence with the online world is now very much a reality. In India, the story is no different. With over 150 million mobile subscribers expected by 2008, there exists a huge potential for all players in the mobility space. Most of the mobile phones in India are sold through mom and pop stores, and there is a huge grey market that exists. MBazaar Pantaloon realized this largely untapped opportunity and intended to be a dominant modern retail player in the mobile space. This is what prompted the company to set up a new division ConvergeM in 2005-06 to identify, develop and bring to the market, mobile products and solutions tailor-made to suit the consumers requirements at competitive prices. ConvergeM adopts a unique approach of establishing, multi-brand, multi-category, multi-format and comprehensive solution outlets to lead and exponentially expand the market. As in most other formats, ConvergeM too operates in the lifestyle and value platforms. Its value offering, MBazaar is a format that addresses the value seekers quest for possessing latest technologies at lowest prices. Primarily aimed at the replacement market, a typical

MBazaar is located within most Big Bazaar stores as well as stand-alone options. This 250-500 square feet offering retails both GSM and CDMA and landline phones, while providing options of M Pods, downloads to name a few. The mission for Converge M is to emerge as the largest organized retailer in the mobile space, while leading innovation in mobile applications and being the most favored destination for all communication needs.

Format-8 Restaurant, Leisure & Entertainment Increasing urbanization and rising disposable incomes are characteristics that are common in emerging economies like India. Estimates suggest a growth in urban consumption at potentially 20% per annum in nominal terms for at least the next 5-7 year period. The total number of middle to high income households is projected to reach 105 million by 2010, thereby adding a large number of people to the consuming class. These demographic numbers represent a young nation, which has an increased propensity to spend in restaurants and other food service sectors, fuelling growth in the Leisure, Restaurants and Entertainment industries. The company is using the collaborative approach to strengthen its position in the leisure and entertainment space. This has helped the company build a complete bouquet of brands that span from food courts to fine dining. As the shift from high street to malls continues, the restaurant business is expected to increase significantly. For Indians, shopping comes hand in hand with eating and celebrating and these formats are being developed keeping this in mind. F123 is designed as a entertainment zone that can be present in every mall and this business is expectedto gain traction in the coming year.

F123, the entertainment zone offering is a leisure solution for all age groups. The focus would be to offer a wide range of gaming options from bowling and pool, interactive video games to bumper cars. The entire concept is built around international thinking and gaming knowledge, with Indian pricing. For the year ending 2005-06, there were three F123s operational, with the first one opening in November 2005.

Format-9 Star and Sitara 1. Delivery Formats Star &Sitara In the beauty space, the companys offering, Star &Sitara aims at pampering the beauty conscious consumer by offering the latest beauty products, ranging from cosmetics, skin and hair care, aromatherapy and fragrances. Star &Sitara is set to be part of most Big Bazaar and every Beauty and Health Mall, which the company is in the process of setting up. There were 6 Star &Sitara operational as on June 2006. 2. Star &Sitara Beauty Salon Star &Sitara, the beauty services offering, doubles as a unique parlor and salon for men and women. Customers will be treated to the best quality hair and skin services at unbelievable prices. One such store was operational as on the 30th June 2006.

3. Beauty & Health Mall Pantaloon, will be the first retailer in India to offer health, beauty and wellness products and services. This will be led through its Beauty & Health Mall format. Typically, of around 25,000 square feet each, these centers will include pharmacies and beauty product zones and a host of other offerings such as health cafes, gymnasium, healthcare services, retailing fitness

equipments, yoga centers and books on health and fitness etc. The company plans to open at least three Health & Beauty Malls during the year 2006-07 in Bangalore, Ahmadabad and Mumbai.

Format-10 E-TAILING The emergence of a mass base of net savvy Indians is realty today. Access to Internet is no longer limited to a small segment of young, male urban people. Cutting across age groups, gender, geography and socio-economic backgrounds, Indians are taking to the net like fish to water. It is estimated that there are at least 25 million Indians who access the Internet on a regular basis. Falling prices of personal computers and laptops coupled with increasing penetration of internet, and broadband services is driving more and more Indians to the Internet. In fact, Indians are no longer limiting their Internet usage to email and chatting. Online shopping has finally come of age. As the leading retailer in India, Pantaloon could ill afford to overlook this emerging segment. There is a sufficiently large segment of online shoppers whose consumption spends needs to be captured. Its with this belief that the company started exploring this area. Pantaloon perceives its online business as yet another delivery format that can potentially reach out to 25 million customers. Future Bazaar, has modeled itself on a unique complete retailer platform. Etailing requires extensive sourcing capabilities, warehousing capacity, buying trends understanding & most importantly a robust & efficient logistic backend. Future Bazaar leverages the offline brand equity and brick & mortar presence of the group via multi channel integration to benefit on economy of scales, economy of scope in promotion &distribution and utilizing the offline learning into online & vice-versa to grow at a faster pace. As a new delivery format, Future Bazaar can benefit from the learnings and expertise gathered in existing formats as well as boost sales at these formats through the online sale of gift vouchers

Format-11 Liberty Shoes With fashion being the focus of the company, the intent is to provide a complete wardrobe experience to the consumer that includes not just apparel but fashion accessories also. Accessories speak a lot about the personality of the individual and are a reflection of the attitude of the wearer. Footwear is one such category in the fashion sphere that truly embodies the phrase-best foot forward. Footwear as a category has been present in most of the companys Big Bazaar; Fashion Station, Pantaloons and Central retail formats. During the year under review, Pantaloon explored the opportunity to get into branded footwear, by partnering with the well-established footwear company Liberty Shoes. The joint venture named Foot Mart Retail (India) Limited would launch branded footwear retail chains in the country under the Shoe Factory brand. These stores would be located within most retail spaces that Pantaloon would be present in, and as stand alone stores across the country. Shoe Factory stores would be a destination for men, women and children of all ages, who can choose from a wide variety of quality footwear at various price points, suiting their budgets. The venture launched its first store in Ahmedabad on 5th May 2006. Spread over nearly 13,000 square feet, this value format houses a wide range of the latest and trendiest footwear and accessories for all occasions, at unbeatable prices. Format-12 GINI&JONY The company recognizes that the organized kids wear category has shown signs of sizeable growth over the past couple of years. In order to expand and consolidate its presence in this category, the company entered into a joint venture with the countrys leading kids wear retailer, Gini&Jony Apparels Pvt. Ltd. This equal joint venture named GJ Future Fashions Limited,

apart from gaining additional visibility within all existing and upcoming Pantaloons stores and Central malls will set up a chain of exclusive kids wear stores throughout the country, addressing fashion needs of children in all age groups, from 5 to 15 years. This initiative witnessed the opening of two stand-alone stores during the year 2005-06 in Indore and Ahmedabad.

Format-13 BIG BAZAAR Issesastaauracchakahinnahi! Big Bazaar has clearly emerged as the favorite shopping destination for millions of its consumers, across the country, its success is a true testament to the emotional bonding it has established with the Indian consumer, on account of its value offerings, aspirational appeal and service levels.Shop till you drop! Big Bazaar has democratized shopping in India and is so much more than a hypermarket. Here, you will find over 170,000 products under one roof that cater to every need of a family, making Big Bazaar Indias favorite shopping destination. At Big Bazaar, you will get the best products at the best prices from apparel to general merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods, car accessories, books and music, computer accessories and many, many more. Big Bazaar is the destination where you get products available at prices lower than the MRP, setting a new level of standard in price, convenience and quality. If you are a fashion conscious buyer who wants great clothes at great prices, Big Bazaar is the place to be. Leveraging on the companys inherent strength of fashion, Big Bazaar has created a

strong value-for-money proposition for its customers. This highlights the uniqueness of Big Bazaar as compared to traditional hypermarkets, which principally revolve around food, groceries and general merchandise.Boasting of an impressive array of private labels, Big Bazaar is continually striving to provide customers with a complete look. So be it mens wear, womens wear, kids wear, sportswear or party wear, Big Bazaar fashions has it all!

Format-14 Food Bazaar Across India, food habits vary according to community, customs and geography. Food Bazaar, through its multiple outlets addresses this. At the same time it offers best quality products at wholesale prices to a wide cross section of the India population. Food Bazaar effectively blends the look, touch and feels of the Indian bazaar with the choice, convenience and hygiene that modern retail provides. The food and grocery division of the company was launched in 2002-03 and has grown to 47 stores nationwide at the end of the current financial year. Most stores are located within Big Bazaar, Central and Pantaloons and act as strong footfall generators. There are separate stand-alone Food Bazaars as well. The business contributed just fewer than 50 per cent of value retailing, and about 20 per cent to the companys turnover during 2005-06. Food Bazaar offers a variety of daily consumption items, which include staples, soaps and detergents, oils, cereals and biscuits. On the product category side, the primary segregation is done on the basis of staples, fresh produce, branded foods and home and personal care products.

COMPANY PROFILE

Future Group understands the soul of Indian consumers. As one of Indias retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow. Future Group employs 35,000 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. We believe in the Indian dream and have aligned our business practices to our larger objective of being a premier catalyst in Indias consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the Sone Ki Chidiya soar once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India.

OUR 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 segments for classes and for masses. 3. We shall infuse Indian brands 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.

OUR VALUE:

Indianans: 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.

Executive Committee Board

Kishore Biyani(Founder and Group CEO, Future Group) Considered a pioneer of modern retail in India, Kishores leadership has led the groups transformation into Indias leading player in the consumption sector. Regularly ranked among Indias most admired CEOs, he is the author of the book It Happened in India. He has won multiple awards from government bodies and the private sector in India and abroad and is on the board of a number of bodies, including the National Innovation Foundation in India and New York Fashion Board.

AnshumanSingh(Managing Director & CEO, Future Supply Chain Solutions Ltd.)

In a career spanning over 18 years, Anshuman has worked in all aspects of the value chain across several industry segments such as Discrete Manufacturing, Durables, Textiles, Retail and Supply Chain with companies like Grasim, H&R Johnson, Bombay Dyeing, and Welspun Retail. He is responsible for starting the first Home Furnishings Speciality Retail Chain in the country in his last assignment as the Director and CEO of Welspun Retail Ltd. before rejoining Future Group where he created Future Supply Chains Ltd. Anshuman is a Mechanical Engineer and an MBA.

B. Anand( Director Finance, Future Group)

A Chartered Accountant by training, Anand has nearly 20 years of experience in corporate finance and banking across diversified business groups. Before joining Future Group, he was President-Corporate Finance, Vedanta Resources Group. He has been associated with Motorola India, Credit Lyonnais, HSBC, IL & FS and Citibank.

Damodar Mall (Director, Integrated Food Strategy, Future Group)

An alumnus of IIT Mumbai and IIM Bangalore, Damodar has over two decades of experience in the FMCG and food industry. He was a co-founder of DMart, a supermarket chain in Western India, and was associated with Uniliver in India.

Kailash Bhatia (Director & CEO, Pantaloon Retail)

Co-founder of the ColorPlus brand, Kailash has over three decades of valuable experience in the fashion business and is considered to be a stalwart in the Indian fashion industry. Before joining Pantaloon Retail, he was associated with Weekender, Arvind Mills and Mafatlal Industries, among other companies.

K. K. Rathi (CEO, Future Ventures India Ltd.)

A qualified Chartered Accountant and Company Secretary with approximately 24 years of professional experience in corporate finance, strategic business planning and investment

advisory, Mr. Rathi has worked in organizations such as KEC International, H&R Johnson and MotilalOswal Private Equity Advisors. He has previously worked as Group CFO with Pantaloon Retail.

Sanjay Jog (Chief People Officer, Future Group)

Sanjay has over two decade of experience in working with a wide range of companies in the services sector in India and abroad. A post-graduate from Pune University, he joined Future Group in July 2005. Before this he worked with companies like DHL Limited, Indian Hotels Group, Bharti Enterprises and RPG Enterprises.

Santosh Desai (Managing Director & CEO, Future Brands India Ltd.)

An alumnus of IIM Ahmedabad, Santosh has over two decades of experience in advertising. He was President of McCann-Erickson, India prior to his association with Future Group. A highly respected figure in the advertising and marketing community in India, Santosh is a columnist with the Times of India and several other publications and has addressed the global management boards of several multinationals, including Hersheys, Microsoft, Philips, Unilever, Coke etc. He is also the author of the book Mother Pious Lady Making Sense of Everyday India.

SumitDabriwala (Managing Director, Agre Developers Ltd.)

An entrepreneur in his own right and an urban developer, Sumit has 21 years of corporate experience with significant exposure to the real estate sector. Before joining Future Group, he was on the Board of Directors of Calcutta Metropolitan Group and Riverbank Holdings.He has served as a Member of Infrastructure Council in CII, Infrastructure Sub-Committee Chairman, Regional Council Member and Core Group Retail Chairman in CII (Eastern Region), and as an

Infrastructure Committee Member, Executive Committee Member, and Chairman of Young Leaders Forum in the Indian Chamber of Commerce.

Ushir Bhatt (Group CIO, CEO, Future Knowledge Services)

Ushir has over 25 years experience in Information Technology across Europe and India in multiple industries, including construction (Taylor Woodrow), wines and spirits (Allied Domeq), telecommunications (British Telecom), Retail (Tesco, Kingfisher) and various Internet B2B companies.

Vibha Rishi (Group Strategy and Consumer Director, Future Group)

Vibha started her career with Tata Administrative Services and later joined the start-up team of PepsiCo when the company set up shop in India. After having led several advertising campaigns for the PepsiCo in India, she moved to the global headquarters as marketing leader for all noncola brands. She joined Future Group in March 2010 and leads the marketing, communications and customer strategy across group companies.

V. Vaidyanathan (Vice Chairman and MD of Future Capital Holdings Ltd.) An alumnus of Birla Institute of Tec

Founders' Board:

Anil Biyani (Director, Future Group ) RakeshBiyani (Director, Future Group) Sunil Biyani (Director, Future Group) Vijay Biyani (Director, Future Group)

STRATEGY OF COMPANY:
Our multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, our strategy is based on our deep understanding of Indian consumers. We understand the varied buying behaviour of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences. We believe that modern Indian retail rests on the strength of two pillars scale and efficiencies. As front-runners in both areas, we firmly believe our core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of our operations helps us improve efficiencies, it also ensures we deliver greater value to our customers. Our retail thrust is focussed on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations. Acknowledging this, we are creating retail pure play through divestment and demerger of non-retail businesses to concentrate our efforts on these verticals.

Indias retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country, that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country.

ORGANIZATION CHART:

STORE MANAGER

SWOT Analysis

Strength:

Better understanding of customer helping the company to save them better.

Vast range of product under one roof helping in attracting customer and their family to shop together and enjoy the experience.

Benefit of early entry into the retail industry. Diversified business operating all over India in various retail formats. Ability to get product from customer at discounted price due to the scale of business.

Weaknesses

High cost of operation due to large cost. Very thin margin.

Opportunity

Lot of potential in the rural Market. Can enter into production of various product due to its in depth understanding of customer test and preferences.

Can expend the business in smaller city as there is the lot of opportunity.

Threat

High business risk involved. Lot of competitor coming up to tap the market potential. Margin of business reduce all time.

AWARD:

Indian Retail Forum Awards 2008

Most Admired Retail Group of the year Future Group Most Admired Retail Face of the Year - Kishore Biyani Most Admired Retailer (Hypermarket) Big Bazaar

The INDIASTAR Award 2008

Food Bazaar: Best Packaging InnovationWith this award, Pantaloon Retail (India) Limited becomes the first Indian Retailer to win the prestigious INDIASTAR Award.

Retail Asia Pacific 500 Top Awards 2008

Gold Winner - Top Retailer 2008 Asia Pacific

Coca-Cola Golden Spoon Awards 2008

Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani. Most Admired Food & Grocery Retailer of the Year Supermarkets: Food Bazaar. Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar. Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food, Beverages & Grocery: Future Group.

Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar.

The Reid & Taylor Awards for Retail Excellence 2008

Retail Leadership Award: Kishore Biyani Retail Best Employer of the Year: Future Group Retailer of The Year: Home Products and Office Improvements: HomeTown

CNBC Awaaz Consumer Awards 2009

Most Preferred Multi Product Chain - Big Bazaar Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group Most Admired Private Label - Pantaloons, lifestyle format Critics Choice for Pioneering effort in Retail Concept Creation - Central

Images Fashion Awards 2010

Most Admired Large Format National Fashion Retailer of the Year - Central Titan IFA Most Admired Large Format Retailer of the Year - Central

Coca-Cola Golden Spoon Awards 2010

Most Admired Food & Grocery Retailer of the Year : Large Formats Big Bazaar Most Admired Food & Grocery Retailer of the Year : Private Label Pantaloon Retail

Golden Spoon Awards 2011

- Most Admired Food & Grocery Retailer of the Year : Private Labels Food Bazaar

MILESTONE:

2006

Future Capital Holdings, the groups financial arm, is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds.

Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar.

Future Group enters into joint venture agreements to launch insurance products with Italian insurance major Generali.

Future Group forms joint ventures with US office stationery retailer Staples.

2007

Future Group crosses the $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retailled technology services become operational.

Pantaloon Retail wins the International Retailer of the Year award at US-based National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.

Online portal Futurebazaar.com becomes Indias most popular shopping portal.

2008

Future Capital Holdings becomes the second group company to make a successful Initial Public Offering (IPO) in the Indian capital market.

Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world.

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.

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 cocreated with Sachin Tendulkar.

Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers.

2011

April 2011 KBs Fairprice celebrates opening its 200 stores in India May 2011 Future Supply Chains becomes ISO certified

2012

DEPARTMENT

1. RETAIL Future Group makes every effort to delight its customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their desires.We operate some of Indias most popular retail formats. Across value and lifestyle segments, our multi-format retail strategy caters to the complete consumption needs of a wide cross-section of Indian consumers.As modern retail drives fresh demand and consumption in new categories, our strategy is based on a deep understanding of Indian consumers, the products they want, and making these products available in every city, in every store format. Future Group offers innovative offerings at affordable prices tailored to the needs of every Indian household.

Pioneers in the Indias retail space, our formats are household names in more than 85 cities and 60 rural locations across the country

Our stores cover around 15 million square feet of retail space and attract around 220 million customers each year

Pantaloon Retail (India) Limited focuses on the lifestyle retail segment led by the Pantaloons and Central formats

Future Value Retail focuses on the value retail segment through the Big Bazaar, Food Bazaarand KBs Fairprice formats

LIFE STYLE In the lifestyle segment, Future group operates Pantaloons, a fashion retail chain and Central, a chain of seamless destination malls among others.

VALUES In the value segment, Future Groups popular brand Big Bazaar is a hypermarket chain that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.

HOME Launched in 2006, Future Groups home retail business is among the fastest growing retail formats.Future Group provides products and services related to home building and home improvement through Home Town, a large-format home solutions store, along with specialized formats for home furniture and furnishing through Collection i and Furniture Bazaar

DIGITAL FutureBazaar.com has seized the e-commerce opportunity as well as other technology-based and digital means of consumption. An integrated shopping portal, it has enabled consumers to shop online for home delivery of products from our flagship stores eZone, Pantaloons and Big Bazaar. Operating in the space of Digital commerce spanning the Internet, phone, store kiosks and other sales channels, FutureBazaar.com offers a large variety of categories and home delivers products to more than 16,000 Pin Code addresses in 1,500 cities and towns across India. FINANCE Future Group has broadened its finance services portfolio to strengthen its position in the highly competitive consumer market through user-friendly and dynamic services based on Indian consumer needs. Our group companies provide consumer finance and insurance to customers besides offering corporate loans and equity investments to companies engaged in consumer businesses. The key aspect of our business model is to provide a unique personalized customer experience to expand and capture a greater share in the highly competitive finance market and help people realize the Indian dream. Financing Dreams: Future Groups financial arm - Future Capital Holdings Limited (FCH) is a provider of financial services across consumer and wholesale businesses, with aspirations to grow into a significant financial conglomerate.

Conceptualized around a unique positioning of a financial services business, integrated with a retail chain, Future Capital is establishing financial superstores within the Retail stores of Future Group such as Big Bazaar, E-zone and Home Town to create Indias first consumercentric retailer of financial products and services.

Securing Lives: Future Groups foray into life and non-life insurance services and products is led through Future Generali India Life Insurance Company and Future Generali India Insurance Company, respectively. These ventures are in partnership with Italys Generali Group that is amongst the three largest insurance companies in Europe and is ranked amongst the Top 50 on the Fortune 500 list. Enabling Entrepreneurship Future Ventures promotes and participates in innovative and emerging business ventures in India. We aim to empower entrepreneurship by focusing on consumption-led sectors in the country such as Fashion, FMCG, Food Processing, Home Products, Rural Distribution and Vocational Education. We also participate in businesses where we can exercise control and add value as an active shareholder by utilizing the experience and knowledge of Future Group.

SERVICES

1. Logistics and Supply Chain At Future Group we believe the viability of a retail operation hinges as much on achieving efficient logistics and supply chain as it does on attaining success at the front end. A seamless logistics function to move our products from the manufacturer to our store shelves is at the heart of our retail operations. Our robust presence in logistics and supply chain helps us move millions of products to customers each day of the year across India in the most efficient and cost-effective manner

2. FUTURE SUPLY CHAIN Future Supply Chains, a specialized subsidiary, offers a strategic, focused and consolidated approach to meet the groups large supply chain requirements as well as those of select suppliers and business partners. Future Supply Chains provides integrated end-to-end supply chain management, warehousing and distribution, multi-modal transportation and container freight stations.

Operates 5 major verticals: Warehousing, Transportation, International Logistics, Brand Distribution and Reverse Logistics

Current warehouse footprint of over 3.5 million square feet with 67 warehouses across 32 locations.

Dedicated fleet of over 400 vehicles and an outsourced fleet of 400 trucks that move goods across India in the most efficient and cost-effective manner

Li & Fung, the Hong Kong-based largest retail supply chain company, is an investor and partner of Future Supply Chains.

Learning and Development

Future Group addresses opportunities in the education, learning and skill development space through Future Learnings three unique lines of business which leverage the groups understanding of the consumer-centric business.

1. FUTURE LEARNING

In 2008, Future Group established Future Learning whose unique strength lies in its rich experience in the learning and development domain, especially across the retail industry. Future Learnings three focused lines of business are Future Lead, Future Innoversity and Future Sharp. Media Future Groups media venture is aimed at the creation of media properties in the ambience of consumption and offers active engagement to brands and consumers. FUTURE MIDIA Future Media (India) Limited (FMIL) offers relevant engagement through its media properties within Future Group retail spaces. Visual spaces in the shopping environment include shopping trolleys, carry-bags, elevator doors, standees, danglers, trial rooms, counters, in-store signage, product displays and facades.

Amongst print properties, Future Media offers My World, a monthly magazine for Future Group customers. Future Media has also launched Future TV, the first retailer-owned channel in India that aims to provide a unique audio-visual experience within an in-store environment. Brands Future Group has built an attractive portfolio of some of the fastest growing consumer brands in India. This activity is led through Future Brands India Limited, a specialized subsidiary company set up to create and build powerful brands that address the aspirations of the new Indian consumer. FUTURE BRAND Future Brands Limited (FBL) is involved in the business of creating, developing, managing, acquiring and dealing in consumer-related brands and IPRs (Intellectual Property Rights). We retail a wide range of products and brands, some of which have been grown and nurtured by our group companies.

PARTNERSHIP Valuing and Nurturing Relationships At Future Group we strongly believe that our vision of serving every Indian consumer is possible only if we live our value of Valuing and Nurturing Relationships with our partners, vendors and suppliers. Our partnership program aims to create an environment combining our strengths with our partners to create immense value for customers and, in turn, foster mutual growth. Future Group is focussed on building partnerships with the three pillars of Collaboration, Assistance and Synergy.

We combine our strengths to create a unique value proposition by sharing consumer insights and product knowledge, joint brand building, value engineering and developing new products. With a proven track record of developing long-term partnership models on a win-win basis, Future Group is a partner to some of the most reputed speciality retailers from around the world.

Generally Group: Generally, (founded 1831) the third largest insurance company in Italy with a dominant presence in Europe, South-east Asia and China is our partner in the life-insurance and general insurance space in India. Staples Inc: US-based $20bn Staples Inc. is our partner for office stationery retailing. Launched in Bangalore in 2007 as Indias first office stationery chain, it is now a 24-store network.

TRADE PROFILE

Retailing is the most active and attractive sector selling goods or services directly to final of the last decade. While the retailing industry consumers for personal, non business use itself has been present through history in our country, it is in the recent past it has witnessed so mush dynamism. Retailing one of the largest sectors in the global economy is going through a transition phase not only in India but the world over. The study of any subject is made easier by examining it in an organized fashion. There are three classes of variables involved in understanding consumer behavior, stimulus, response and intervening variables. Stimulus variables, such as advertisement, products and hunger pangs exist in both the individuals external and internal environment. These generate sensory inputs to consumers. Responses variables are the resulting mental and/or physical reactions of individual who are influenced by stimulus variables. For ex: - purchasing a product or forming attitudes about it could be viewed as responses variables. Many of the variables affecting consumer (such as personality, learning, and perceptions of external situations, motives, and so forth) cannot be directly observed therefore, those who want to learn about the variables affecting consumer must often make inference to determine the extent to which a given variable is having an influnce The study of consumer behavior can also be quite complex, because of the many variables involved and their throw the variables, tendency to interact with and influence each other. Models of consumer behavior have been developed as a means of dealing. With this complexity.Models can help organize out thinking about consumers into a coherent into a coherent whole by identifying relevant variables, describing their basic characteristics, and specifying how the variables relate to each other.

Consumer decisions Process:

This process consists of the decision process regarding products and services. The major steps in this process are shown as problem recognition, information search and evaluation, purchasing processes, and post purchase behavior. Problem recognition occurs when the consumer is activated by awareness of sufficient difference her actual affairs and her concept of the ideal situation. This can occurs through activation of a motive such as hunger, by confronting some external stimulus such as an advertisement, or by being effected by additional variables such as social or situational influences. Internal search a quick and largely unconscious review of memory for stored information and experiences regarding the problem. The information is in the form of belief and attitudes that have influenced the consumers preference towards bands. Often such a review results in recognizing a strong brand preference, and a routine purchase occurs. However if an internal search does not provide sufficient information about products, or how to evaluate them, the consumer continues with a more involved external search for information. This result exposure to numerous informational inputs called stimuli, which can arise from a variety of sources, including advertisement, printed products reviews, and comments from friends. Any informational stimuli are subjected to information-processing activities, which the consumer uses to derive meaning from stimuli. The process Involves allocating attention to available stimuli deriving meaning form these stimuli and holding this meaning in what is termed in what is termed short term memory where it can be retained briefly to allow further processing.

Indian retail market scenario The financial year 2005-06 saw India ride high on the waves of a booming economy. The BSE sensex scaled new heights by crossing the 1200 points mark early that year. The GDP growth for 2005-06 was about 8.4 % while foreign reserves had crossed the US$ 165 billion mark. India had shed its tag of a third world country and is being hailed as one of the most rapidly emerging markets and a popular investment destination. Between the affluent and the middle class has reduced dramatically. The Indian middle class is expected to grow from its current share of 22 % to 32 % of the total population by 2010 over the last few years retail has become one of the fastest growing sector in the Indian economy. Retail in India is currently estimated to be a $230 billion industry of which organized retail 3 % or roughly $ 7 billion. At keamey has identified India as the leading retail destination in their annual list of most attractive countries for international retail expansion (Global retail development index 2006). Organized retail is expected to grow at the rate of 25-30% per annum and is projected to attain a size of $23 billion by 2010. The booming services sector in India has fueled the growth of a new class of consumer the single urban youth whose expenses are typically independent of family compulsion. As observed globally the steady climb in lifestyle and leisure goods is essentially due to disposable income of this class of consumers. Over the last one year salaries have increased by approximately 15-20%. The divide The government has allowed foreign direct investment in real estate since early 2005. This has led to increased foreign interest and has encouraged joint ventures between Indian and foreign developer. Considering the vast potential in the retail business 51% FDI in single brand retailing has also been allowed recently. This move is anticipated to attract foreign investment technology global best practices and cater to the demand for high quality branded goods in India.Corollary to

the real estate growth retail boom too has percolated to the tier-2 and tier-3 cities of India of the total 361 mail projects currently underway in India 227 are in the top 7 cities while the rest 134 are distributed over various tier-2 tier3 cities. These statistics reveal the far reaching effect of positive macro trends In changing the consumer preferences and shifting mindsets towards organized retail experience besides new malls close to 35 hypermarket 325 large department stores and over 10000 new outlets are also under development. Growth in rural population and increase in agricultural incomes also offers considerable scope for innovative retail formats. Indias vast middle class and its virtually untapped retail industry are key attraction for global retail giants wanting to enter new markets. As India continues to get strongly integrated with global policies the retail sector is bound to grow manifold in the years to come. The depth of the Indian market and the variations of the consumer profile portend a bright future for the sustained growth of the Indian retail sector.

Current scenario Pune has been experiencing a retail boom since the last 2-3 years in 2005 approximately 1.25 mm. sq. ft of new retail space was added to Pune real estate market. This led the current retail stock of the city to grow to 3.5 mm.sqft growth in commercial activities and the migrant population of young white collar workers has been the key driver of real estate boom in the city. With 23 mall projects in the pipeline the city was expected to have a cumulative retail slot of approximately 4.5 mn.sqft by end 2006 and infusion of new retail space over the next two years the total retail stock in Pune by end 2008 is estimated to be about 8.7 mnsq ft.

The city has been witnessing an interesting trend of movie screens being located in large format mall developments. Another noticeable trend in the retail format is the advent of specialty mall or niche malls. Centre locations The locations where retail developers have flourished traditionally are the high streets of M .G Road F C road and J. M. road in the central part of the city these markets have a unique mix of local brands along with national and international retailers both are known to generate substantial revenues along with heavy footfalls. However the development of malls in the neighboring locations is anticipated to affect the footfalls of these traditional high streets. A case in point is the presence of magnum mall (175000 sq. ft.) In the camp area which has created a pull effect on the consumer stronghold of M. G. road.nucleus mall (200000 sqft ) in camp which became operational in 2005 had shoppers stop take up space for its second outlet in the city. Another large scale project Pune central a mall by pantaloon retail on bund garden road has food bazaar as its anchor tenant and caters to the domestic needs of the bulk of the resident population of central Pune. These retail market in the central location of the city currently house approximately 1.78 mn.sq.ft of retail stock a new mall fun n travel (100000 sqft) has been planned in the bund garden region while two malls ascent (93654 sqft) And one centre port (1240000 sqft) are coming up on the university road. These developments are slated to enter the market sometime in 2007.

Suburban and peripheral location While the retail markets in camp an bund garden road continue to mature retail sector activity is increasingly shifting to suburban and peripheral locations of Aundh, Hadpsarkarve road kondhwa and yerwadanote worthy mall development sudev axis (350000) will also be operational in 2007 this micro market is expected to witness a number of large scale mall developments amounting to approximately 2.3 mnsqft of new retail space by 2008.

RESEARCH METHODOLOGY

Big Bazaar basically means business and in business collection of raw data allows the managers to see the real scenario and then take a decision as per the data obtained. There are several implications in this statement:

They can examine the available information in the form of data to make a decision They can even get a clear picture of the scenario or potential of Big Bazaar as compared to other retail stores in the city.

The information can only be gathered by data collection and then analyzing the available data.

Therefore, it can be said that the data collection is an important part of the project. The projected objectives were considered and as per the requirement a market survey was done. Procedure: The procedure that followed can be enlisted as below:

Reading about the product Deciding on the objective to proceed. Developing Survey instruments Conducting personal interviews of different age-groups, sex, monthly income and occupation through a Questionnaire.

Process adopted: 1. Gaining knowledge about the product at Big Bazaar:

Reading about the products was the first step undertaken. This gave not only in depth knowledge about what is been offered by other players but also proved useful while developing the questionnaire. 2. Steps in the Development of the Survey Instruments

The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below: 3. Customer Survey:

The people play an important part as a clear perception of people about the product can be estimated and known. Studying the need levels of the people regarding the products can be observed. It was very useful in knowing about the requirements of the people.

Research Design: A two stage Research was conducted:

2. Primary Research: A Primary Research was conducted: The questionnaire was prepared for the companies and following areas covered:

competing retail stores Features offered by different stores Consumer profile Satisfaction level Reasons for their purchase. Desirable features of the product and service.

Sampling PlanElements: The target population of the study included the general population of every age who enters to the Big Bazaar

Sample size: 100 people. (100 people are the respondent people)

SYSTEM OF RESEARCH METHODOLOGY Instrument Used Technique of Survey Sampling Unit Sampling Extent Sampling Questionnaire Personal Interview Customer and public Allahabad, Region Random

Method Used For ResearchSurvey Method

Data Collection
The final draft of the questionnaire (see Appendix) was prepared on the basis of the observations from the pilot study. These were then finally filled by 100 customer, for the conclusive study. Types of Primary Data collected: Socioeconomic Characteristics:Socioeconomic characteristics are sometimes called states of being in that they represent the type of people. The factors on which we are working are occupation. Monthly transaction is also an important parameter but it is difficult to verify.

Although the amount of money that business unit earns in a month is an absolute, not a relative quantity but it is a sensitive topic in our society and it is difficult to determine. Attitudes/Opinions:Through the questionnaire we have tried to get hold of customers preference, inclination and requirement. Attitude is an important notion in the marketing literature, since it is generally thought that the attitudes are related to the behavior of customer. Motivation:Through the questionnaire we have tried to find the hidden need or want of customer and have tried to find if these people can be tapped as the potential customer for Big Bazaar. Behavior:Behavior concerns what subjects have done or are doing. Through the questionnaire we have tried to find out the behavior of the individuals regarding the product and their responses. If the responses are favorable then the person can be said to be our potential customer. The primary data serves as an important tool to measure the behavioral trend of the customer. It helps in answering some of the vital Questions. Obtaining the Primary Data: The data collection was primarily done through communication. Communication involves questioning respondents to secure the desired information, using a data collection instrument called questionnaire. The questions were in writing and so were the responses. Versatility: It is the ability of a technique to collect the information on the many types of primary data of interest to marketers. It has also been found that some of the people do not answer truthfully to all the questions especially in the case of the personal details

Data Analysis

The tools and methods of data collection identified earlier were employed to gather data on the consumer perception on Big Bazaar. The data accrued, especially from the interviews and questionnaires circulated, are tabulated and depicted on graphs in the following pages. The data thus gathered and tabulated is analyzed. The data is then scrutinized and relevant interpretations are drawn. The major objectives of analysis of data are: 1. To evaluate and enhance data quality 2. Examine effects of other relevant factors 3. Customer satisfaction ratio, 4. Level of satisfaction, 5. Causes of dis-satisfaction, 6. Customer responses regarding services. The data collection plan, including procedures, instruments, and forms, was designed and pretested to maximize accuracy. All data collection activities were monitored to ensure adherence to the data collection protocol and to prompt actions to minimizeand resolve missing and questionable data. Monitoring procedures were instituted at the outset and maintained throughout the study, since the faster irregularities can bedetected; the greater the likelihood that they can be resolved in a satisfactory manner and the sooner preventive measures can be instituted.

Q. 1) Age of the respondents. Age Below 18 18-40 40-60 60 above Total Total 30 45 15 10 100

Data: The first criteria respondents were asked to indicate was the age group they belonged to. Respondents were asked to choose among four age group categories, viz., below 18, 18-40, 40-60, 60 above years. The age groups were identified as key factors impacting shopping and purchase decisions of consumers. Analysis From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 100 respondents who answered the questionnaire, 45% indicated that their ages fell in the category 18-40 years 30% indicated below 18, 15% indicated 40-60 year and 10% indicated 60 above.

Interpretation: By analyzing the responses to this question, I, as a researcher, as well as companies, can identify the demographics of the population that visit retail outlets. The highest number of respondents falls in the age group 18-40. It can be deduced that most of the consumers who visit retail outlets regularly are the youth. They make up almost more than half of the population who shop at retail stores.

Q. 2) Gender of the respondents: Gender Male Female Total Total 65 35 100

Data: Consumers were asked to indicate their gender. The object of this question is to understand the demographics of the population under study. Analysis: From the table, and chart depicted above, the distribution of the consumers is evident. Of the 100 respondents who answered the questionnaire, 65 were female and 35 were male. It is evident

from the responses and the subsequent tabulation that the number of female respondents was higher than that of the male respondents in the population under study. Female are the major buyers at the Big Bazaar. Interpretation: By analyzing the responses to this question, I as ,a researcher, as well as companies, can identify the distribution in the number of men and women whovisit the retail outlets and appropriate decisions can be made keeping these numbers in mind. The highest number of respondents were female, as is depicted by the graph and chart presented above. The number of male respondents was less compared to the female respondents. Two decisions can be made from the above data collected:

one, more women visit retail outlets than men. Two, more women are willing to fill out questionnaires and take a survey than men.

Since more women can be inferred to visit retail stores than men, companies can target their offerings and marketing strategies in two areas. Retail outlets can appeal to the women customers by offering more products geared especially towards women. They can provide a shopping experience that women are particularly attracted to. Another way that retail chains can use the above data is to think new techniques so that they can appeal to the men rather than the women. Since, fewer men visit

retail stores as against women, the companies have a large base of potential customers. By providing products that are geared towards men and by providing a shopping experience that attract mens they can increase their loyal customers.

Q.3) How you came to know about Big Bazaar. Source Electronic media Word of mouth Print media Hoarding Total Total 30 40 20 10 100

Data: Consumers were asked to indicate the source from where they got information about Big Bazaar. The object of this question is to understand the source of information of the population under study.

Analysis: From the table, and chart depicted above, the distribution of the consumers is evident. Of the 100 respondents who answered the questionnaire, 40% people got information about Big Bazaar from word of mouth 30% from electronic media ,20% from print media ,10% from Hoardings.

Interpretation: By analyzing the responses to this question, I as ,a researcher, as well as companies, can identify the source of the information for the customers from where they got the information about Big Bazaar. Appropriate decisions can be made keeping these numbers in mind.

We should increase the quality of service and which we are providing to customers, so that we can increase loyal customers so that they can influence more people and our customer base can be increased.

Secondly we can increase our advertisement on electronic media as now days customers are also influenced by adds on TV, and other electronic media.

Q. 4) How often do you shop? Frequency Once a week Fortnightly Once a month Total Total 45 30 25 100

Data: Consumers approached were asked about their frequency in visits to shops. The frequency points furnished were: Once a week, Fortnightly, and Once a month. These frequency points were identified by observation and interview as the average times that consumers shop.

Analysis From the table, and chart depicted above, the frequency of shopping of the respondents is evident. Of the 100 respondents who answered the questionnaire, 45 indicated that they shopped once a week, 30 indicated that they shopped Fortnightly 25 who visit shops, malls or retail stores once a month. Interpretation This question is aimed at understanding how frequently consumers visit shops and buy their products or avail of their services. The frequency points laid before the respondent have been the result of observation and interview. By analysing the responses to this question, I the researchers, as well as companies, can identify the number of times a customer is likely to shop in a months time. The highest responses have been attributed to once a week shopping. It can be deduced that consumers who shop only once a week, pose very different challenges to retail stores. Such customers can be presumed to have a high disposable income and may buy more lifestyle or fashion products. Since they shop so frequently, they must continually be entertained and attracted to make repeat purchases at stores. When targeting this segment, companies must be able to get new stock every week, and update their marketing strategies continuously.

As monthly customers can buy the products in bulk so they can shop during (M.B.B) and other offer seasons but we can give every week big discounts to customers so its more difficult to increase the customer base of weekly customers. It can be increased if employee handle the customer well, display of the product, and ambience of the retail outlet is good . Q.5) Why do you shop at Big Bazaar? Factors Offer Price Easy Availability of Product Quality Total 17 23 35 25

Data: Consumers approached were asked about their factors effecting their purchasing decision. The factor points furnished were: Quality, Price, Offer, Availability of product Analysis From the table, and chart depicted above, the factors effecting purchasing decision of consumers is evident. Of the 100 respondents who answered the questionnaire, 35 answered availability of product 25 answered quality, 23 answered price 17 answered offers as their main factors influencing their buying decision.

Interpretation This question is aimed at understanding what elements attract the consumer the most. The preference points laid before the respondent have been the result of observation and interview. By analysing the responses to this question, I the researchers, as well as companies, can identify the biggest factors that influence the consumers in favouring one store over others. The highest responses and the highest factor have been attributed to availability of products on sale, when choosing to shop at a particular store. Although it is said that the most important things in retail are Location, location, and location, from the consumers point of view, proximity is of little concern. The quality, price and variety of goods play big roles in the decision making process.

Q.6) During which offer you shop most? Factors Wednesday Bazaar Monthly Bachat Bazaar Weekend offers Total No. 30 50 20 100

Data: Consumers were asked to answered that during which offer they shop most at Big Bazaar. The object of this question is to understand the type of offers which effect the sales of Big Bazaar. Analysis: From the table, and chart depicted above, the distribution of the consumers is evident. Of the 100 respondents who answered the questionnaire, 50% customers purchase decision are effected by M.B.B(Monthly Bacaht Bazaar ) 30% are influenced by Wednesday Bazaar and only 20% got influenced by weekend offers.

Interpretation: By analyzing the responses to this question, I as ,a researcher, as well as companies, can identify the offers which influence the customers most while purchasing at Big Bazaar. Appropriate decisions can be made keeping these numbers in mind.

We should increase the no. of offers days as we can give fortnightly offers, and other additional discounts which are not available outside of Big Bazaar, so that we can increase loyal customers so that they can influence more people and our customer base can be increased.

Secondly we can increase our advertisement on electronic media as now days customers are also influenced by adds on TV, and other electronic media, about different offers as many customers are not aware of different offers going on at Big Bazaar.

Q.7) what do you mostly shop at the Big Bazaar stores? Detail Accessories Groceries Others (specify) Clothing Total No. 25 32 13 30 100

Data Consumers approached were asked to indicate the types of products they mostly shopped at Big Bazaar. The types of products presented were Clothing, Accessories, Groceries and others. These products were identified by observation and interview as the most popular products that consumers shop for frequently. Analysis From the table, and pie chart depicted above, the products frequently shopped for by consumers is evident. Of the 100 respondents who answered the questionnaire, 32% indicated that they essentially shopped for Groceries, 30% Clothing, 15% others (Luggage, Footwear etc), and 25% Accessories. It is evident from the responses and the subsequent tabulation that consumers, on an average, frequently shop for products in the following descending order: Clothing, Accessories, Others and Groceries.

Interpretation Of the consumers approached, 100 people agreed to fill in the questionnaire and this specific question. This question is aimed at identifying the products consumers shop for frequently at retail outlets. The product categories laid before the respondent are the result of observation and interview. By analysing the responses to this question, I the researchers, as well as companies, can identify the main attractions of products and services offered. The high number of responses indicate that a large number of consumers visit retail outlets for groceries. Approx One-third of the respondents indicated that they visit retail outlets to purchase Clothes. To the retail stores, the above tabulated responses lead to a very important result. Groceries is the fastest moving consumer good. Retail outlets that provide groceries and apparels can see a higher rate of turnover and sales volume.

Q.8) Are you aware with Big Bazaar own brands?

Items Food Bazaar Tasty Treat Dj& C Total

No. 40 25 35 100

Data Collected Consumers approached were asked if they were aware about the Big Bazaar own brands as Food Bazaar, Tasty treat, Dj&C etc. Analysis From the table, and chart depicted above, the awareness about big bazaar own brands in the consumers is evident. Of the 100 respondents who answered the questionnaire, 40 replied that they were aware about Food Bazaar 25 were aware about Tasty treat and 35 were aware about Dj& C brand. Interpretation This question is aimed at the awareness in customers about the Big Bazaar own brands. The object is also to analyze how to increase awareness about the Big Bazaar own Brands among consumers. By analysing the responses to this question, I the researchers, as well as companies, can identify the awareness about the big bazaar own brands among consumers.

This indicates that although most consumers are aware about the big bazaar brands Food Bazaar brands are more popular then other brands.

Q.9) Are you satisfied with Big Bazaar own brands (e.g Tasty Treat)?

Details Yes No Total

No. 65 35 100

Data Collected Consumers approached were asked about their satisfaction level with the Big Bazaar own Brands. This question was answered by 100 consumers. Analysis From the table, and pie chart depicted above, the satisfaction level among the customers about Big Bazaar own brands Of the 100 respondents who answered the questionnaire, 65 replied yes that they were satisfied with the big bazaar brands and there were 35 people who were not satisfied with big bazaar brands.

Interpretation Of the consumers approached, 100 people agreed to fill in the questionnaire and this specific question. This question is aimed at satisfaction level among the customers for big bazaar brand. By analysing the responses to this question, I the researchers, as well as companies, can identify that many customers are satisfied with the own brand of big bazaar. From the tabulated data depicted above and responses of the consumers, we can see that to promote own brand we should advertise more and packaging can be made more attractive.

Q.10) In which area of operation at Big Bazaar improvement is needed? Detail Cashier Speed Staff Knowledge Waiting Time Management Total No. 45 30 25 100

Data: Consumers were asked to answered that in which operation they want improvement at Big Bazaar. The objective of this question is to understand the improvement area at Big Bazaar. Analysis: From the table, and pie chart depicted above, the distribution of the consumers is evident. Of the 100 respondents who answered the questionnaire,45% customers need improvement in Cashier speed 30% are not satisfied with the staff knowledge about the product 25% thought waiting process management is not good at Big Bazaar. Interpretation: By analyzing the responses to this question, I as ,a researcher, as well as companies, can identify the improvement areas in operations at Big Bazaar. Appropriate decisions can be made keeping these numbers in mind.

We should increase the no. of cashiers atleast on Wednesday Bazaar, Weekends, Monthly Bachat Bazaar.

Secondly we can increase sources of entertainment to manage the waiting process management ,we can play good songs so that customers are not irritated during waiting

Findings

Generally youth and womens are the main customers at Big Bazaar. Electronic media has an great impact on customers they are getting aware about new products and related offers.

Due to availability of all products under one roof and near by their house helps customers to shop weekly and shop fresh every time.

Groceries are the main items purchased by the customers and they are aware about big bazaar brands and mostly are satisfied with them.

All the customers want that their time should not waste after shopping, number of cashiers should be increased ,waiting process management should be made good.

Conclusion

The report reveals that there is huge scope for the growth of organized retailing and improvement of Big Bazaar Store in Allahabad city.

With the changing lifestyle, modernization and westernization there exists a huge scope for the growth of Big Bazaar store and is therefore a threat to unorganized retailing.

Big Bazaar store are able to provide almost all categories of items related to food, health, beauty products, clothing & footwear, durable goods so it become quite easier for the customer to buy from one shop and hence is a convinient way of shopping when compared to unorganized retailing.

Aggressive Marketing is the key to increasing the market share in this area, since the market has a lot of potential both in terms of untapped market .

Recommendations

To increase more footfalls more promotional activities must be carried out. For this BIG BAZAAR can either offer more discounts or increase their advertisements. Increase in the number of footfalls will lead to increase in sales.

Allowing more space between the entrance of a store and a product gives it more time in the shoppers eye as he or she approaches it. It builds a little visual anticipation.

The number of trial rooms available at BIG BAZAAR is very less as compared to the number of people coming. This usually results in long queues and waiting by customers.

Install more full length mirrors inside the store so as to assist the customers to make better purchase decisions.

Play light music inside the store to make the shopping a pleasurable experience.

They can also exhibit their new line of clothing through events like fashion shows.

Baskets should be scattered throughout the store, wherever shoppers might need them. Many customers dont begin seriously considering merchandise until they have browsed a bit.

Limitations

This research has a number of limitations that must be acknowledged.

First, the sample used for this study consisted mostly of college students. Therefore, these results may not be applicable to the wider population in general.

Secondly, the results of this study are limited to a specialty retail branded purchasing context.

Lastly, it must be acknowledged that there may be numerous other variables that contribute to the development of customer satisfaction, customer loyalty, and word of mouth communication which are briefly touched upon below.

To convince the people for a proper interviewing process is also difficult. The figures have been taken as approximations.

The study is confined only to a small segment of the entire population due to monetary and time constraints and hence the results are applicable only to the city of Allahabad.

Financial problem is also there in completing this project in a proper way.

QUESTIONAIR

NAME: ------------------------------------------------------------------

ADRESS: _____________________________________________

OCCUPATION: ----------------------------------------------------------

CONTACT no: ______________________________________________

EMAIL ID:__________________________________________________

AGE:

(a)Below 18 [ ]

(b)18-40[ ]

(c) 40-60

[ ]

(d) Above 60

[ ]

GENDER: (a) Male

[ ]

( b) Female

[ ]

1) How you came to know about Big Bazaar?

(a) Electronic media [ ]

(b) Word of mouth [ ]

(c)Print media [ ] (d) Hoarding [ ]

2) How often do you shop?

(a) daily [ ]

(b) Once aweek [ ]

( c) Fortnightly[ ]

(d) Once a month[ ]

3) Why do you shop at Big Bazaar?

(a) Quality [ ] [ ]

(b) Offer [ ]

(c) Price [ ]

(d)Easy Availability of Product

4) During which offer you shop most?

(a) Wednesday Bazaar [ ]

(b) Monthly Bachat Bazaar

(c) Weekend offers [ ]

5) What do you mostly shop at the Big Bazaar stores?

(a)Clothing [ ]

(b) Accessories [ ]

(c) Groceries [ ]

(d)Others (specify) ____________________________________

6) Are you aware of Big Bazaar own brands? (a) Food Bazaar [ ] (b) Tasty Treat [ ] (c) Dj&C [ ]

7) Are you satisfied with Big Bazaar own brands (e.g Tasty Treat)? (a) Yes [ ] (b) No []

8) In which area of operation at Big Bazaar improvement is needed?

(a)Cashier Speed [ ]

(b) Staff Knowledge [ ]

(c) Waiting Time Management [ ]

9) Problem which you face in Big Bazar..

10) Any suggestion about Big Bazar.

Date:__________________ Signature:__________________

BIBILIOGRAPHY

Kishore biyani(2007) it happened in India(1st edition ) Rupa publication Stephen covey (1994), the Seven Habits Of Highly Effective People. C.R. Kothari (Research Methadology)

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