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Introduction to Retail
The Indian retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate backed hypermarkets, supermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers like the traditional family run stores and corner stores. Traditional markets are making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike, introducing the Indian consumer to an unparalleled shopping experience. Large Indian players like Reliance, Ambanis, Rahejas, Bharti AirTel, ITC and many others are making significant investments in this sector leading to emergence of big retailers who can bargain with suppliers to reap economies of scale. Hence, discounting is becoming an accepted practice. Proper infrastructure is essential in retailing, which would help to modernize India and facilitate rapid economic growth. This would help in efficient delivery of goods and value-added services to the consumer making a higher contribution to the GDP.

RETAILING FORMATS IN INDIA

Malls: The largest form of organized retailing today. Ranges from 60,000 sq ft to 7, 00,000 sq.ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment; all under a common roof. Examples include Shoppers Stop, Inorbit, and Infinity. Specialty Stores: Chains that specialize in a single category of products such as Kids Kemp focusing on kids category of products, Crossword focusing on books, RPG's and Planet M specializing in music retailing, are focusing on specific market segments and have established themselves strongly in their sectors. Discount Stores: Discount stores or factory outlets, offer discounts on the MRP (Maximum Retail Price) through selling in bulk and having economies of scale or

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excess stock left over at the end of the season. The product categories range from a variety of perishable and non-perishable goods. Department Stores: These are large stores ranging from approximately 20000-50000 sq. ft, catering to a variety of consumer needs. It is also classified into localized departments such as clothing, toys, home, groceries, etc. Supermarkets: Supermarkets are large self service outlets, catering to varied shopper needs and are termed as Supermarkets. These are mainly located near residential areas. Super Markets can also be classified in to mini supermarkets typically 1,000 sq.ft to 2,000 sq.ft and large supermarkets ranging from of 3,500 sq.ft to 5,000 sq.ft. having a strong focus on food & grocery and personal sales. Convenience Stores or Kirana Shops: These are relatively small stores 400-2,000 sq.feet located near residential areas. They stock a limited range of high turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. MBOs: Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

Food Bazaar
Organizational Structure Mr. Shailesh Haribhati - (Chairman) Mr. Kishore Biyani - (Managing Director) Mr. Rakesh Biyani - (Joint Managing Director And Ceo Of Future Group) Mr. Anil Harish - (Director) Nsg & Co. (Statutory Auditors) Food Bazaar is a new concept of Future Group. Food Bazaar was flagged off in April02 which is a chain of supermarket. Food Bazaar currently caters to over 1.2 million customers every day across outlets in India. The core concept of Food Bazaar is to create a mix of an Indian Bazaar and an International supermarket atmosphere with an objective of giving the customer all the advantages such as Quality products, products at varying Range and Prices. Since, the Indian consumer likes to "See, Touch and Feel" the products like wheat, rice, pulses, fruits and vegetables before making her final buying decision, Food Bazar

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allows the comfort of being able to see, touch and feel the products. At other super markets, the consumer is deprived of this factor where only pre packed staples, foods & vegetables are offered. Food Bazaar offers the Indian consumer the best blend of Western and Indian values. The western values such as convenience, cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See-Touch- Feel" are offered by displaying staples out in the open, all at very economical and affordable prices without any compromise on quality. Food Bazar have positioned themselves as Ab Ghar Chalaana Kitna Aasaan! Yes! In Mumbai food bazar has outlets at the following locations: Mumbai Central Lower Parel Vile Parle Mulund Goregaon Vashi Andheri Thane Kharghar And Many More

PRIVATE LABELS AT FOOD BAZAAR.

Leading the charge is the country's largest retailer Future Group, whose private brands have been outselling some of the country's best-known brands in select categories across 200-plus Big Bazaar and Food Bazaar outlets. Food Bazaar launched in 2002 to meet the aspiration of middle class. Private labels products at Food Bazaar outlets:Private labels or in-house brands are products manufactured by third parties for retail chains and are priced nearly 15% lower than their branded counterparts. This is largely because the retailer's branding efforts are limited to in-store display and promotions unlike that of FMCG brands. In 2008, Food Bazaar boycotted cereal maker Kelloggs brand across its outlets all over India because the marketer were demanding higher business margins. This big step Food Bazaar can only take because it was having high confident on it in house or private label products which were attracting customers as they were available at reasonable price. This can be seen from the fact that Future group's own brands grew 52% in 2010 while private brands in modern trade grew 19%.

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Private Labels in Food Bazaar 1. 2. 3. 4. 5. 6. 7. 8. Tasty treat Clean mate Fresh and pure Sach Ektaa Golden harvest Chuckless Prarthana

Products-

Current trends in Food Bazaar:Food is culture and food habits habit change as slowly as culture itself. Consumers migrating to other cities want their native community food. The grocery chain of India's largest retailer Future Group, it does a catchment analysis of an area with a 34 kilo meter radius around any potential store location. Which helps Food Bazaar in planning its merchandise according to the community living in the vicinity for more footfalls and optimum inventory planning? For example: - Mumbai's Matunga area has a high population of South Indians and hence retailers would step up micro-marketing efforts in the vicinity during festivals like Onam. Due to which sales numbers are showing some impact. At Vashi in Mumbai, Food Bazaar has a complete range of south Indian food, to cater to the second largest community in that catchment area after Maharashtrians. The chain does regular data analysis that helps it to create customized offers for the communities surrounding its stores and these particular activities have helped increase sales by 25-35 % for the categories being promoted. Whenever Food Bazaar

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see large catchments of a specific community, it try and step up retail presence of products in the vicinity of that location, which appeals to that specific community,

Factors for the success of Food Bazaar:1. Embarked on a process of collaboration with major FMCG companies 2. Partnering with Indias leading FMCG brands like Nivea, Dove, Olay, Lakme and Ponds among others to celebrate Beauty Carnival across 5 Metros. 3. Private Label brands like Tasty treat, Sach, Cleanmate. 4. Logistics network that carries an average of 2 million pieces everyday with peak single day transactions reaching 4 million pieces. 5. Offering Fusion service of Western plus Indianness- the western values of convenience, cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See-Touch-Feel" are offered through the bazaar-like atmosphere created by displaying staples out in the open, all at very economical and affordable prices without any compromise on quality.

Extended Ps of Marketing at Food Bazaar

People: Sales executives at food bazaar are well trained, highly motivated and have the right attitude towards the customers who help consumers in purchasing the products. Well-dressed staff improves the overall appearance of the store, gives the staff an identity that is easy for a customer to approach. The staff understands the importance of customer satisfaction; they have been given a special training on the types of customer and ways to handle the customers of various behaviors. The level of after sales support and advice provided by the sales people adds value to the strong customer relationship and it will give a competitive advantage over the competitors, this is well understood by food bazaar and hence the staff always tries to help the customer in whatever manner they can and provides pull after sales assistance to ensure customer satisfaction.

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Process: Process in Food Bazaar plays an important role in customer satisfaction by soling issues like long waiting time for the billing process, options available in payment for the customers, always keeping the customers informed through mails, messages, etc. Technology is very well used for the billing and the inventory management at the store which ensure that low waiting time at the bill desk for the customer and also availability of the products on shelf at the time when customers need them, which in turn increases the loyalty and the patronizing of the customers towards food bazaar. Food Bazaar keeps a close eye on the process right from the purchase to the delivery of goods. They have trolleys to carry the products, multiple billing counters and also home delivery for purchase over Rs 1000/-.

Physical Evidence: Physical evidence in service industry is a process of tangibalizing the intangibles because this is the intangible part of the services which cannot be seen, touched or feel. The ambience in Food Bazaar itself is enough to prove the physical evidence. There are proper signs on the floor for clear directions to different categories or a section in the outlet makes the purchase experience of the customers more convenient. The store layout and assortment of goods (merchandising) in Food Bazaar helps the customers to locate the products which they want in a quicker way which saves time. The information about different brands, prices and offers are very well communicated to the customers. Proper information in terms of the price tags on the products and the display to communicate the discounts or special offers on certain products.

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Customer Feedbacks Experienced during Visit to Food Bazaar
Store Management - Good Shopping Experience - Satisfactory Discounts - High Environment Noisy & Unpleasant Parking - Good Quality - Good Air Conditioning - Average Cleanliness Satisfactory

Consumer satisfaction & buying behavior at Food Bazaar:

Our visit to food bazaar outlet helped the group to understand the following key aspects about the level of the customer satisfaction & buying behavior pattern in Food Bazaar: The store has a very successful rate of attracting customers. Most of the people who visit the stores are largely in the age group of between 25-45 years. People usually visit to the store once a week and the traffic goes up nearly by 400% in the weekends. The variety of products and brands is excellent in food bazaar. The main grey area for customer satisfaction is the billing section and parking space, which is mostly a challenge on the weekends and holidays. The promotional offers and schemes help to attract more customers during the weekdays. Most of the customers who visit to store are middle class people having annual income between Rs. 1.5-3 lacs. Cleanliness and hygiene are on a spot of bother for food bazaar. Food bazaar provides value added services to the customers like free home delivery, informing customers about the offers on time, helping customers in their purchases, etc. Most of the customer pull is driven by promotional offers & schemes and product variety which are the main reasons for the large number of people visiting Food Bazaar.

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The store ambience, well trained sales staff, product variety and offers are some key features of Food Bazaar which gives them a shade superior edge over the competitors.

Store Merchandising / Design / Layout

Food bazaar stocked on an average 10,000 stock keeping units (SKUs) and occupied on an average 5,000 square feet of retail space. It was modeled on the Indian mandi, where customers could touch feel and chose products supplemented by packaged foods for western shoppers. The products sold are categorized as: 1. Processed Food & Non Food (Hungry Kya). 2. Dry Staples (Golden Harvest) 3. Wet Staples (Chill station) The processed Food and Non Food category contributes 60% of Food bazaar sales. This category includes a mix of products for a large number of FMCG companies and a wide range of imported products, health foods, and specialty foods. Dry Staples includes dry groceries like rice, wheat, dal, spices etc, this category contributes 30% of the sales. Wet Staples includes fruits and vegetables. This contributes 10% of the sales. Local flavors and varieties are made available through the shop model, by arrangements with leading vendors in each city. The company has launched Food Bazaar Masalas, Food Bazaar Tea and premium Harvest Pulses.

Merchandise Offered
Food grains, Spices, Edible oils, Biscuits & Chocolates, Snacks, Health Drinks, Frozen goods(Veg.), Body Care, Oral Care, Washing items, Vegetable & Fruits, Other Utilities such as imported chocolates, olives, snacks and biscuits.

Store Layout and Design

Grid Type Layout Shelving Pattern: Use of Wall Racks, Corner Racks, Retail Gondolas, Fruits & Vegetable Racks, Shopping Trolleys And Baskets, Wire Products, Check Out Counter, Glass Shelves and Accessories, Gondola End Racks, Wall Unit Racks, Wire Baskets.

Store Operations: Food Bazaar

Food Bazaar works on a Central Procurement System. There are in all 3 Central Warehouse located in various parts of India, one of which is located in Bhiwandi, near Mumbai. From here depending on the need of the product in the Food Bazaar Retail

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Store, the Store Manager will place a request of the product to the Regional Warehouse.

Retail Points 1

Regional Warehouse 1 Central Warehouse (Big Bazaar & Food Bazaar) Regional Warehouse 2 Regional Warehouse 3

Retail Points 2

Retail Points 3

So, the required good is dispatched from Central Warehouse to the Regional Warehouse and then to the Food Bazaar Retail Store. This process is ideal for those products which are not very easily perishable like grains and processed food items. For highly perishable items like green vegetables and fruits, Cross Docking is the way that Future Supply Chain (Future Groups Supply Chain subsidiary) adopts to distribute directly to the Retail points.

Procurement Policy & Procedure, Inventory Management

Food Bazaar, the supermarket variant of Pantaloon Retail (India) Ltd, has adopted the 'negotiated and predetermined' model to source vegetables and fruit from farmers across states. The company uses the model to procure potatoes from farmers in Uttar Pradesh where the quantity and quality of the produce is predetermined. The company decides the price after the harvest to give maximum benefit to the farmer. In Maharashtra, the company has started procuring Alphonso mangoes from farmers. It has tied up with the Maharashtra State Agricultural Marketing Board (MSAMB) to buy directly from the farmers. The farmer and the retailer fix the price jointly. Packed food and other products are mostly purchased directly from the manufacturer.

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Number and Type of Employees in a Store
Store manager 2-Cashier 2-Supervisor 12-Floor Staff (for 1800 to 2000 sq. ft store Area)

Penetration of Information Technology

All the latest tools and software for inventory, stock taking, replenishment of stock and billing are used.

PEST ALANYSIS
Political: Properties of taking over properties and real estate Problems of getting subsidy from Oc like land, water etc. troi (local tax) and on different taxes

A stable government at the center will facilitate speedy economic recovery and create an encouraging investment climate.

Economic: India one of the fastest growing economies Retail industry to grow increasing income of people Increase in percentage of service contribution to GDP Stable even during recession Growth stage: High revenue but high expenditure on promotion

Social Cultural: Increase in nuclear families People prefer to shop in local store with reasonable price Increase in working women proposition Life style changes Shift in product and service preferences

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Increase in young population Technological: Technological development for faster service Better application of IT in the modern retail industry, like in supply chain management , store management and CRM Electronic billing Use ERP module for handling inventory and finance.

Issues Faced by Food Bazaar

Unable to meet store opening target Falling Revenue per Square Feet Competition from Other Players

Differentiation by Food Bazaar

Embarked on a process of collaboration with major FMCG companies Partnering with Indias leading FMCG brands like Nivea, Dove, Olay, Lakme, Ponds, among others, to celebrate Beauty Carnival across 5 metros. Private label brands like tasty treat, sach, cleanmate logistic network that carries an average of 2 million pieces everyday with peak single-day transactions reaching 4 million pieces

Competitive Advantage
Pricing

Overall shopping experience Give Special offers Private label regional products

Collaboration with major FMCG Planned logistic network

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Promotion Methods adopted By Food Bazaar
BTL: ATL: Advertisement in newspapers TV ads Internet (own website which gives online shopping services) Partnership with Big fix, Big FM 92.7 Coupon discounts Gift with purchase Competitions and prizes Money back offers Exchange offers Special occasions.

Advantages at Food Bazaar

Down to earth and low pricesThe prices of all items are very competitive and affordable. Food Bazaar prides itself on the savings it helps customers make while shopping there. Competitive Schemes and OffersGreat value for money offers on various products from time to time help keep the customer happy and his/her budget in check. Unmatched shopping experienceThe entire shopping experience is a very pleasant experience for the customer with air conditioning, soothing music, lighting all contributing to the excellent service levels. Excellent serviceService is quiet, efficient, and helpful in a pleasing way. No pushy salespeople. Only simple smiling sales people ever ready to help the customer when asked

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Excellent QualityOffers the best of Indian and a few foreign labels too, vegetables - fresh, clean and crisp - both regular as well as exotic

Future Plans of Food Bazaar

Looking at achieving a turnover of Rs 800 crores by 2013. The retailer is looking to multifold expand the number of outlets it already has. It is looking to add over 20 more products to its line of private products. Looking to expand its Fresh Foods and value-added pre-cut or ready to use vegetables. More Fruits, especially exotic varieties will be introduced in Tier-I cities shortly. Popularizing Sach - a recently launched oral care brand, co-created with Sachin Tendulkar. Launching more Gourmet Food Bazaars after the one launched in Delhi, in other metros.

References: http://shodhganga.inflibnet.ac.in/bitstream/10603/3794/13/13_chapter%205.pdf http://www.myfoodbazaar.com/weeklyspecial/ http://fciweb.nic.in/

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