Ajit Singh Final Report

A REPORT ON IMPROVEMENT IN PRODUCTIVITY OF STORE OPERATIONS IN FOOD BAZAAR
By AJIT SINGH (11BSPHH010059)
FUTURE VALUE RETAIL LIMITED (FOOD BAZAAR) 12-13-96, 5TH FLOOR SAADAT PLAZA NEAR FLYOVER, TARNAKA HYDERABAD-500017
Page | 1 , IBS Hyderabad
A REPORT ON IMPROVEMENT IN PRODUCTIVITY OF STORE OPERATIONS IN FOOD BAZAAR
A report submitted in the partial fulfilment of the requirements of MBA Program of IBS Hyderabad
Faculty Guide:
Prof. A Srikanth (Marketing & Strategy, IBS Hyderabad)
Company Guide: Mr. Vasant Mohan (Sr. Executive, Future Value Retail)
DATE: 4th June 2010
AJIT SINGH
(11BSPHH010059)
Authorization
This is to certify that Mr. Ajit Singh , Enrolment No.11BSPHH010059 has done his Summer internship at Future Value Retail Limited (Food Bazaar) , Regional Office and has submitted this project report entitled Improvement in Productivity of Store Operations in Food Bazaar towards partial fulfilment of the requirement of the Two Year MBA Program (2011-13) at IBS, Hyderabad.
This Report is the result of his own work and to the best of my knowledge, no part of it has earlier been comprised in any other, monograph, dissertation or book. This project is carried out under my overall supervision.
DATE: 4th June 2010 PLACE: Hyderabad
Mr. Vasant Mohan
Company Guide
ACKNOWLEDGEMENTS
I acknowledge gratefully my indebtedness to my Company Guide Mr. Vasant Mohan, for his patient help, valuable suggestions, encouragement and guidance at every stage of my work, which enabled me to complete the internship in its present form.
I would also like to thank the Mr. Rajeev Sharma (Regional Branch Manager) and marketing team for their valuable insights and knowledge that they shared with me and helped me gain a lot of practical exposure.
Additionally, I am grateful to all the employees of Future Value Retail for helping me throughout this project by providing help and a congenial work environment, which was a catalyst for a great learning experience.
I also wish to thank my Faculty Guide Prof A. Srikanth for providing his expert guidance, vital inputs and support throughout the project.
I wish to express my gratitude to my friends for their constant encouragement and support.
Finally I would like to thank all the people who gave their precious time to respond to the questionnaires and hence helped me gaining valuable information and complete the survey successfully.
TABLE OF CONTENTS
I. II. III.
Authorization....................................................................................3 Acknowledgment...............................................................................4 Executive Summary............................................................................7
CHAPTER-1 (INTRODUCTION)
1.1 Introduction................................................................................8 1.2 Objective of the Study.................................................................9 1.3 Methodology...............................................................................10 1.4 Literature Review........................................................................11 1.5 Limitations of the Study..............................................................12
CHAPTER-2 (INDUSTRY OVERVIEW)

2.1 Introduction................................................................................13 2.2 Structure.....................................................................................14 2.3 Growth Drivers............................................................................19 2.4 Key Challenges.............................................................................22 2.5 SWOT Analysis.............................................................................25
CHAPTER-3 (COMPANY OVERVIEW)

3.1 Introduction.................................................................................27 3.2 Vision and Mission.......................................................................30 3.3 Core Values..................................................................................31 3.4 Food Bazaar and its Format.........................................................32 3.5 SWOT Analysis.............................................................................36 3.6 Afflicted Companies.....................................................................37
CHAPTER-4 (OPERATIONS IN FOOD BAZAAR)

4.1 General Operations.....................................................................40 4.2 Departments in Food Bazaar.......................................................44
CHAPTER-5 (PROJECT)
5.1 Phase- FIRST............................................................................... .45 5.2 Phase- SECOND........................................................................... 58 5.3 Phase- THIRD............................................................................... 62
CHAPTER-6 (SUGGESTIONS)
6.1 Findings and Conclusion..............................................................74 6.2 Recommendations.......................................................................75 6.3 References...................................................................................76 6.4 Annexure......................................................................................77
EXECUTIVE SUMMARY
Indian retail sector is going through most intense activities of all times. All the players in the market are fighting for the share and to gain customers loyalty. Everyone is trying to gain the largest market share. In such a scenario the marketing activities becomes an essential part of any Retail business. The operational efficiency also plays an important part in the business. The balance between the demand and supply with maximum utilization of the resources is the essential part of todays scenario.
Big Bazaar the leader in the retail business in Indian Retail Industry has unique marketing and operational techniques since its inception that helps to maintain its leadership in the market and increases its sales. The direct marketing channels like Direct Mail, SMS blast, In-store and Store-Front activities, Events, etc. to establish the direct communication with the customers.
PHASE 1 : ACTIVITY SCHEDULES Activity schedules of the team members, team leaders and department managers were collected during the first phase of the project. PHASE 2: OBSERVATION RESEARCH The various findings and observations were done in the Food Bazaar. Also did findings as mystery shopper in all the four sub departments of the food bazaar. To know better about the food bazaar from consumers point of view. PHASE 3: SURVEY THROUGH QUESTIONNAIRE To get customers response for about Food Bazaar through primary data survey. Sample size of 500 was taken from all the food bazaar outlets. Various findings and suggestions were taken from the consumers which can be implemented to better the service.
CHAPTER 1
1.1. INTRODUCTION:
Retail Industry is one of the fastest growing industries. It is one of the sectors which are highly unorganized in nature. Due to the structure and format of the retail industry, it is the most challenging sectors in the world. Retail industry deals with the relationships of customer satisfaction, customer loyalty and profitability. Retailing means direct selling to the customers and giving better services to the customer. Retail is a global business. Global Retail Industry is fastest expanding industry. The Global Retail Industry has travelled a long way from a very small beginning to a global industry worldwide. The world retail sales stand at value $7 trillion. The top 200 retailers alone stand 30% worldwide. The retail industry is driven by peoples ability to buy and spent the money. The global leader in the retail industry is Walmart in USA. One of the main factors for the development of retail industry is the rising incomes and improvements in infrastructure. Shift in customers demand towards brands is also one of the main factors. The internet revolution is also playing a vital role, which is making the consumer accessible about the influence of growing retail chains. The Indian retail industry is divided into organised and unorganised. Indias retail industry is wearing new clothes with a growth rate of 47 percent. It is the fastest growing sector in Indian economy. It is the second largest source of employment in private sector and has deep penetrating into rural India. The last few years has been very profitable for the retail industry in India. The key factors can be changing consumer profile, demographics, and increase in number of international brand in India. The various implications implied by Government of India increasing urbanization, increasing in the credit availability, helping in creating the world class environment for the customers. Large retail players in India are heavily investing in retail sector. Sahara group is the latest entrant in the retail industry in India. Future group is the leading company in the retail industry in India.
The organized retail sector in India is at growing stage but attempts are being made to make this industry to increase its proportion to 9-10 percent. The second tier cities have also witnessed the western change. The corporate backed hypermarkets and retail chains have setup their business at these second tier cities. Proper infrastructure is a must required in retailing. This will lead to help in modernizing India. The various untouched rural segments are great opportunity for the Indian players in retail industry. The consumers are vocal on the quality and the prices of the products and services provided to them. Now a days consumer seeks to purchase from the place where his/her feedback is more valued. The increasing literacy rate and exposure to international brands is playing a vital role for the improvement in the retail industry.
1.2. OBJECTIVE OF THE STUDY:

To develop knowledge and understanding of the marketing and operational activity in retailing with reference to Food Bazaar. To gain an insight into the different promotional activities at food bazaar. To understand the effectiveness of the tools used during the promotions. To know how the various operational activities are performed in the food bazaar. To get an insight about the daily activity schedules of team members, team leaders and department managers. To efficiently manage the activity schedules of the Food Bazaar team to provide better services to consumers. To know about the customers response about the Food Bazaar. Application of the theoretical knowledge in the practical field through a live case study of Food Bazaar.
1.3. METHODOLOGY:
It is always important to gain an insight in the subject matter of the study undertaken before analyzing and interpreting the result. The methodology used in the project for the analysis and its objectives are highlighted below:
DATA COLLECTION
The whole project is divided into three phases. The first part of the project revolves around the primary research technique, wherein the comprehensive analysis on the operational activities of food bazaar team. The project also looks forward to the primary research in terms of survey through questionnaire and also through the observation research. The observation research was done during the second phase of the project. PHASE 1 : ACTIVITY SCHEDULES Activity schedules of the team members, team leaders and department managers were collected during the first phase of the project. PHASE 2: OBSERVATION RESEARCH The various findings and observations were done in the Food Bazaar. Also did findings as mystery shopper in all the four sub departments of the food bazaar. To know better about the food bazaar from consumers point of view. PHASE 3: SURVAY THROUGH QUESTIONNAIRE To know about customers response for about Food Bazaar through primary data survey. Sample size of 500 was taken from all the food bazaar outlets. Various findings and suggestions were taken from the consumers which can be implemented to better the service.
1.4. LITERATURE REVIEW:

The retail sector sales are on the way of profit and have taken a very important position to push the products in the market. Marketing and operational activities are of great importance to the retail sector. To create the difference among them and gain an upper hand in the sales of the products and develop a loyal customer base. In terms of Food Bazaar all purchases are unplanned and unexpected, situational factors always have great influence on the buying behaviour of the customers. It influences the decision making process of the consumers. To gain an upper stand in the sales of the food bazaar as compared to the competitors. To know the consumers response about the food bazaar. The various operational activities which are performed by the food bazaar team to provide better services to the consumers. Keeping all these things in mind the Food Bazaar targets the consumers. Customer survey will also be done to get the customers response about the various services provide to them and also to increase the sales of the Bazaar. Most of the literature about the operational and marketing focuses on providing better services to the consumers. In the market where consumers tend to exhibit little brand loyalty and the tough competition it is very important to cut back on various unproductive marketing activities and to better the operational activities. Consumer responses to the products of the bazaar differ from place to place thus it is necessary to examine the choice of the consumer. Also sometimes the choice depends upon the offers and the marketing tool used to attract the consumer. Therefore application of the appropriate technique and evaluating the technique is important for the retailers. Cultural factors also play an important role in the sales of the products. Familiarity with the sales method and attitude of the peers towards the sales and operational activities used by the Food Bazaar can influence the sales. Pricing is the most important part in the retailing business with the availability of the various products.
1.5. LIMITATIONS OF THE STUDY:

Time constraint of nearly 3 months. Difficulty in going to different stores. Non-responders for the questionnaire. Limited sample size.
CHAPTER 2
2.1. INDUSTRY OVERVIEW:
Retailing is a distinct, diverse and dynamic sector. It is an activity of enormous economic significance to most developed nations. The word Retail is derived from the French word retailer, which means to cut a piece off Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. From Emerging to Surging to Shining that is how India is being described since the past couple of years. As the corporate- the Piramals, the Tatas, the Rahejas, ITC, S.Kumars, RPG Enterprises, and mega retailers- Crosswords, Shoppers Stop, and Pantaloons race to revolutionize the retailing sector, retail as an industry in India is coming alive. India has around 12.5 million retail outlets. The Indian retail industry due to its organised nature and highly fragmented form is one of the most challenging sectors in the world. No one can say for sure whether the changes taking place in the Indian retail arena represents evolution or revolution. Retail sales in India account for 10-11 percent of the gross domestic product (GDP). The Indian retail market has around 15 million outlets and has the largest retail outlet density in the world. However, most of these outlets are basic mom and pop stores with very basic offerings and fixed prices and lack good ambience. These stores are highly competitive due to lower land and labour prices. Also these stores usually save tax as they belong
to the small industry sector. There are a significant number of new competitors in the retail market and established players seeking opportunities to expand rapidly. Currently the Government does not allow 100 percent foreign direct investment in the retail sector and the government has only allowed single brand retailers to make direct investments. However many multinationals are looking for a franchise model and joint ventures to enter into the Indian retail space. And with the Indian retail space growing at an annual rate of 20 percent the competition is going to be fiercer.
2.2. STRUCTURE OF INDIAN RETAIL INDUSTRY:
1. SIZE
The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney's eighth annual Global Retail Development Index (GRDI). With rising consumer demand and greater disposable income, the US$ 400 billion Indian retail sector is clocking an annual growth rate of 30 per cent. India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population, has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the
past four years alone. Also, organised retail, which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40per cent to touch US$ 107 billion by 2013. According to a study by the National Council of Applied Economic Research (NCAER), almost 40 percent of Indias high income urban population account for the 20-25 largest cities with a population of more than 1 million. Therefore, it would be a challenge for most retail formats to reach these markets during the first five years of operation. However, basic categories such as groceries and gasoline might need to enter second tier cities, where competition is still at a nascent stage and other specialized retail services also have to move beyond 20-25 largest cities. Local retailers realised this opportunity and introduced hypermarket during the nascent stages, leading to hypermarkets doubling their sales turnover and surface area. Similarly hypermarkets also expanded current value sales by expanding into smaller towns and cities.
2. FOOD Vs NON FOOD DISRIBUTION

Food sales constitute a high proportion of total retail sales. In between 19962010, sales through food retailers increased by 85 percent. All food retailers recorded growth in sales. This growth could be attributed to the increases in disposable incomes among the middle class population in India. The increasing entry of women in the labour force has also led to be greater need for convenience products. Food sales accounted for about 63 percent of supermarkets sales and 60 percent of convenience products. Food retailing in India is predominantly a small scale business; such outlets are present in every street of India. These are mostly independent, family owned grocery stores. These shops are abundant in urban as well as rural India. Consumer loyalty for
these outlets is strong and is built on convenience and added services such as credit and free home delivery. Wet markets also continue to be an important retail format since fresh markets are abundant in all parts of India. Fresh foods are less expensive than processed foods and are also the preferred form in most Indian households. Even in the metropolitan cities, hawkers are found selling fresh fruits and vegetables in open stalls or handcarts. Although food sales remain the dominant retail category in the supermarkets its share has experienced a marginal decline since 1996 as non food lines are gradually occupying more shelf space. Non-food sales were valued at Rs. 5000 billion. Average retail sales per non food outlet reached Rs 0.5 million and department stores recorded the highest average retail sales with Rs 176 million. The non-food items retailed through supermarkets generally include cosmetics, toiletries and household cleaning products and some of the supermarkets have even started retailing crockery, household decoration items, small kitchen appliances and kitchenware. This trend has been followed by independent grocers, discounters and co-operative as well. The largest non-food retailers by outlet type in the last five years have been general stores. These outlets have high presence in the rural sector, where non food specialists are absent. General stores carry a varied basket of goods, ranging from toiletries to hardware and sometimes fertilizer. With increasing affluence in the rural economy, these general stores are flourishing. Clothing, footwear, leatherwear and accessory outlets from the next largest group of retailers have recording sales of Rs 1000 billion. Clothing retailers have the highest presence of organized retailing among this group of traders. Brand specific store are common in clothing and footwear.
3. SECTORAL CLASSIFICATION
Retail sectors in India could be classified into three categories, based on their future growth potential, these are: a) Ready-to-go b) Shape/adapt c) Wait and watch The ready-to-go category comprises several sub categories in which determined retailers can build positions immediately. This is a highly attractive sector because ease of sourcing, proliferation of products and consumer acceptance has reached a level that permits the exploitation of size and range. These ready-to-go sectors include dry groceries, electronics and certain kinds of mens clothing, books and music. In electronics a few retailers have already begun to capture the opportunity. The second category of retailing shape/adapt includes fresh groceries, womens clothing, do-it-yourself products, fast food and furniture. It is a challenging category as retailers in these sectors must invest substantially to shape the supply chain and persuade consumers to change their buying behaviour. The third categories of retail segment wait and watch comprises undeveloped sectors that provide no immediate opportunity for retailers. Pharmacy products and retail liquor products are examples of such sectors. Low levels of over the counter drug purchases and complicated regulations make pharmacy chains unattractive. The Indian retailers are venturing into all the three sectors and finding success.
4. INFRASTRUCTURE
India, with a population in excess of one billion, is poised to become one of the worlds largest consumer markets. Thirty percent of these consumers live n towns and cities and the remainder in villages. Over the years, the Indian retailing scenario has been characterized by a high degree of fragmentation as compared to many developed nations. The average of one outlet per business clearly reveals the degree of fragmentation of the retail sector here. There is an increase in the number of both large and small retail formats, with each format catering to a different segment of the market. Large retails formats are showing growth as several retail chains have established bases in metropolitan cities. The numbers of large mega malls are increasing significantly as India is now experiencing a mall boom. These new malls could bring dramatic changes in consumer buying patterns and impact the existing high street retailers.
5. HUMAN RESOURCE
The retail employment in India has increased from 28.6 million in 196 to 50 million in 2011. The retail industry in India is estimated to employ about 10 percent of the total labour force. With the retail industry witnessing high growth, job opportunities in retailing have been increasing. As new retail formats and shopping outlets are coming up all over India, the number of employees going into retailing has been increasing steadily. However, the growth rate of employment has declined with the advent of Information Technology in retailing in the larger retail formats. There is no significant presence of part time employment. The countrys employment law do not
recognize such work patterns. Retailing has immerged as a stream of management curriculum, providing new areas of employment.
2.3. GROWTH DRIVERS:
In Indian retailing the challenge lies in identifying the key drivers that steer the Indian consumers perception and shopping behaviour. The reality is that every retailer has to understand his customers more discerningly than ever before and make strategic choices to pursue the right target customer with the right proposition. According to a study, the five main values sought by shoppers are variety, value for money, product quality, fashion attributes, and time saving. The key drivers of these values are discussed below.
1. SPENDING PATTERN
According to the consumer outlook study conducted by Technopak Advisors, consumer spending is on the rise. It went up in 2011 by percent compared to previous year which had shown a decline of about 2 percent in spending. This growth implied a rise in market opportunity for retailers, estimated to be in the region of Rs 15000 crore among the SEC A and B categories in urban India alone. The study also revealed that the saving and investment had also gone up substantially.
2. CUSTOIMER EXPECTATIONS
Consumer value expectations from markets and shops have changed dramatically in the last few years. This threw up new challenges for retailers like increased pressure from other product categories that were vying for a share of the same wallet of the target customer. Hence changing equations and a sharper focus from retailers.
3. CONSUMER LIFESTYLE
With the increase in the number of educated women entering the workforce and with more two income households with higher disposable incomes, consumer lifestyle is changing. According to Technopak Advisors, the overall spending of the working women is about 1.3 times of an average housewife. However, they spend much more on lifestyle products. The ratio of men to women spending in single income and double income households is 1.12:1 whereas the same is 1.05:1 in the case of double income no kids households.
4. CHANGING ATTITUDES
Indian consumers are now global in their consumption pattern. They are exposed to many international and local brands and many different lifestyles that they like to adopt. The Indian consumer is adopting faster than the retailers can adapt for now. According to a study by Technopak Advisors the increased relative spending of youth compared to elders has gone up over 3 years. Teenagers are getting richer with every passing year. In fact 90 percent
of youths get pocket money, with the average amount having increased. According to Technopak Advisors, Indian consumers have never been more willing to experiment with products with the element of contemporary design. Future trends therefore indicate that value equations will incorporate aesthetic considerations alongside economic and functional considerations. Indian consumers are travelling less than 1-1.5 km from their home to shop, especially in case of grocery and staples.
5. INCREASED SPENDING OF RURAL CONSUMERS

The rural market already accounts for over one-third of the durable and nondurable categories and is growing at a faster pace than urban India. In terms of geography, retailers would need to customize their offerings to tap the rural and semi-urban spending potential. Large format stores are opening in rural areas for agro-inputs. Even in non-metro urban centres, there are very good opportunities to look at starting or expanding operations.
2.4. KEY CHALLENGES:
Despite the retail boom in the country, large-scale retailers seem to be having to indulge in all sorts of promotions to attract store traffic. The main challenges are:
1. THE KIRANA
The Kirana practices customer relationship management diligently. The shopkeeper knows about the customers families, their purchase history and their needs. Consumer familiarity runs down from generation to generation. There is no major dissatisfaction with these stores. They are open longer hours, stock most of the goods required by the residents in a given area, provide credit and home delivery and in many cases supply product that they do not stock without any extra cost. Consequently a large number of customers are not willing to pay a premium for the shopping experience promised by large number of consumers are not willing to pay a premium for the shopping experience promised by large format retailers.
2. HIGH COSTS FOR THE ORGANIZED SECTOR

Traditional retailing has been established in India for some centuries. It has low cost structure, is mostly owner operated, and has negligible real estate and labour costs and little or no taxes to pay. In contrast players in the organized sector have high expenses to meet and yet have to keep prices low enough to
be able to compete with the traditional sector. As a McKinsey report points out, Indian retailers operate on an extremely low cost base. The kiosk type of shops operates on the assumption of zero land and labour costs. For organized players, the lease alone can cost up to 6-10 percent of sales as compared with just 3-5 percent globally. Capital expenses in retail business are high due major renovations needed every 5-7 years.
3. SPECIALIZATION
According to experts, the real boom in organized retailing will come once the supermarkets start selling daily need goods at 90 percent of the regular price. The key will be to plan a national scale presence, build strong sourcing networks that connect the business directly with farms and sell fresh food at attractive prices.
4. CORRECT MERCHANDISE MIX

Getting the right product mix is critical to retailing. Food World started with 6000 stock keeping units but has cut it down to 3500. Every retailer wants to have high value, high margin and fast moving products. However this isnt always possible. Attention has to be paid to gross margin return on investment. One of the indices that retailers use to check volumes is sales density, which shows the amount of sales per sq ft of shop space.
5. STRONG IT SUPPORT
The backbone of retailing is IT. It would require large investments that connect every aspect of the operations seamlessly, from suppliers to the cash counters.
This would enable the retailers to track sales and place orders based on scientific demand projections.
6. POOR INFRASTRUCTURE
In India, infrastructure such as cold-chain infrastructure is primitive, affecting the modernization of the food sector. In order to succeed supermarkets would require volumes to be cast competitive, which would require operations with hubs all over India. Indian infrastructure is not fully developed yet. Roads and rail infrastructure need to be developed. The efficiency in supply chain is far below the international benchmarks. It is also difficult to find suppliers for a large quantity as would be needed by a national chain. A strict quality control increases the prices of the merchandise and the gap between demand and supply.
7. INDUSTRY STATUS
The Indian Retail Council was formed in 2000, under the auspices of the Confederation of Indian Industry (CII). This council is expected to serve as a group for the industry in its dealings with the Government. Until then, retailing had not been considered as an industry and there were only traders associations at local levels. This is the first time a national association has been formed. It is a step in the right direction. It will enable the industry to ask foe unified tax laws, rational octroi and removal of other barriers and impediments.
3.5. SWOT ANALYSIS STRENGTHS

Demographic favour and rising disposable income. Low labour cost of skilled ones. Variety in products and shopping convenience Changing consumer lifestyle Products at cheaper prices with many offers.
WEAKNESS
Various policy related issues. Limited consumer insight. Lack of skilled human resources in retail industry. Undeveloped infrastructure and supply chain. Lack of basic adequate utilities.
OPPORTUNITY
Potential for high investment. Location advantage. Fastest growing format. Rural retail.
THREATS
Various political and social issues. Rising inflation. Low inventory turns and stock availability. Shopping culture.
CHAPTER 3
3.1. COMPANY OVERVIEW:

We strive towards looking at the Indian market differently and strategizing with the evolving customer helped us perform better----Kishore Biyani. Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias leading business houses with
multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai, Pantaloon Retail employs around 35,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.
Big Bazaar won the first mover advantage, of the Indian retail industry, when it hit the market back in 2001.It is emerging as a classless destination where every part of the society comes together which is the hallmark of its success .It is drawing on modernity, but not losing the bazaar as it has a deep understanding of local tastes and an Indian way of doing things The groups speciality retail formats include, books and music chain, depot, sportswear retailer, planet sports, electronics retailer, Ezone, home improvement chain, home town and rural retail chain, Aadhar, among others. It also popular shopping portal, futurebazaar.com. Future Capital Holdings, the groups financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real-estate, hotels and logistics. It also operates a
consumer
finance
arm
with
branches
150
locations.
Other group companies include, Future Generali, the groups insurance venture in partnership with Italys Generali Group, Future Brands, a brand development and IPR Company, Future Logistics, providing logistics and distribution solutions t group companies and business partners and Future Media, a retail media initiative. The groups presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Futures Group joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The groups flagship company, Pantaloon Retail was awarded the International Retailer of the year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the year 2007 at the World Retail Congress in Barcelona.
Future Group believes in developing strong insights on Indian consumers and building business based on Indian ideas, as espoused in the groups core values of Indianness. The groups corporate credo is Rewrite rules, Retain values.
3.2.
VISION
Future Group shall deliver Everything, Every time for Every Indian Consumer in the most profitable manner.
MISSION
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost-conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
3.3.
CORE VALUES
INDIANNESS LEADERSHIP RESPECT & HUMILITY our conduct. INTROSPECTION OPENNESS knowledge.
: confidence in ourselves. : to be a leader, both in thought and business. : to respect every individual and be humble in
: leading to purposeful thinking. : to be open and receptive to new ideas and
VALUING RELATIONSHIPS : to build long term relationships. SIMPLICITY & POSITIVITY : simplicity and positivity in our thought, business and action. ADAPTABILITY FLOW : to be flexible and adaptable. : to respect the universal laws of nature.
3.4. FOOD BAZAAR:

Food Bazaar is a chain of large supermarket with a difference, where the best of Western and Indian values have been put together to ensure your satisfaction and comfort while shopping. It runs with the tagline Ab Ghar Chalaana Kitna Aassan. 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. The best of everything offered with a seal of freshness and purity will definitely make your final buying decision a lot easier.
FORMAT AND MODEL OF FOOD BAZAAR
FORMAT
The format of food bazaar is of a very unique type. It is a conventional supermarket chain inside Big Bazaar, a hypermarket chain. Thus they have successfully combined the four formats of retailing together, i.e. conventional supermarkets, hyper markets, chains and franchising. Using the combination of all them with varieties of products categorized into Spic n Span, Golden Harvest, and Hungry kya, Farm Fresh, Head to Toe, Chill station, International Food, Chef Zone and Mens grooming section. Food bazaar is modelled on Indian mandi, where the customers can touch and feel. The various products at food bazaar include processed food and non-food, dry staples and wet staples. The processed Food and Non Food category contributes 60% of Food bazaar sales. This category includes a large range of FMCG companies and a wide range of imported products, health foods, and specialty foods. Under dry Staples comes a dry grocery like rice, wheat, dal, spices etc, this product type
gives 30% of the sales. Wet Staples includes fruits and vegetables. This gives 10% of the sales.
CONVENTIONAL SUPERMARKET- A conventional supermarket is a self

service food store offering wet and dry groceries and with a limited range of non-food items, such as health and beauty aids and general merchandise. They carry 5000 to 10000 SKUs. They are chosen due to variety, self service and promotions. Self service allows supermarkets to cut costs as well as increase volume. The conventional supermarket was once the most common format. However, competition from other formats due to different value drivers, such as better prices from hyper markets and better service from Kirana stores, has led to a reduction in the number of such stores in developing markets.
HYPER MARKETS- Hypermarkets are combination stores that unite

supermarket and general merchandise sales in one store, with the latter typically accounting for 25-40 percent of total sales. Consumers choose them for one-stop shopping and do not mind travelling to visit these stores. Hypermarkets achieve operational efficiencies and cost savings through their large scale operations. Impulse sales are high in such stores, even when the visit is planned.
CHAINS- A chain retailer operates multiple outlets under a common

ownership and name. Retail chains can range from comprising two stores to over 1000 stores. Some retail chains are divisions of larger corporations or holding companies. Suppliers service the orders from chains promptly and
extend a higher level of service and selling support. New brands reach store faster. Most of these chains sell private label brands. Chain retailers suffer from limited flexibility as they need to be consistent throughout in terms of prices, promotions and product assortments. They have high investments in fixed assets ant rent, product assortments and employees. Due to their spread, these retailers have reduced control, poor combination and time delays. They use innovative strategies to manage costs.
FRANCHISING- Franchising is one of the most common modes of expansion

in retailing. More than one-third of all retail sales are made by franchisees. It signifies a contractual agreement that allows the franchise to operate a retail outlet using the name and format of the franchiser. The franchise pays a fee and royalty on all proprietary for operating a store on behalf of the franchiser. The franchiser provides assistance in locating and building the store, developing the products and services sold, management training and advertising. In the franchise operates the outlet based on the norms and practices laid down by the franchiser. There are two types franchising product or trademark franchising and business format franchising. In product or trademark franchising, the franchiser allows the use of the identity but does not control the operations. In a business format franchising arrangement, the two parties enter into a symbiotic relationship. The aim is to deliver similar services across all outlets. It improves cash flow as money is obtained from fees, royalties and merchandise sales.
3.5. SWOT ANALYSIS:
STRENGTHS
State of the art infrastructure of big bazaar outlets. Point of purchase promotions to increase the purchase. Variety of stuff under one roof. The number of footfalls is converted into sales. Biggest value retail chain in India. Low prices attract customers. High brand equity.
WEAKNESS
Billing process takes a lot of time. Overcrowded during offers. Limited only to value offering low price products. A large number of brands are still missing. The offer and discounts fail to attract youth. General perception low price = low quality.
OPPORTUNITY
Very large market is still untapped. Increasing Western Culture in India.
Bright future as income raises consumption also rises. Evolving consumer preference towards hyper markets. Lot of variety under one roof.
THREATS
Competition from other value retail chains. Unorganized retail also a big threat. Changing policies. International players looking to foray in India.
3.6. AFFILIATE COMPANIES:

Home Solutions Retail (India) Limited
HSRIL was started to give offers and provide complete retailing solutions for all products and services, which are related to home building and home improvement. The key product categories are Consumer Durable & Electronics, Furniture, Home furnishing & Decor, Home Improvement and Home services.
Future Brands Limited

Future Brands Limited has been incorporated in 2006 and is involved in the business of creating, developing, managing, acquiring and dealing in consumer related brands and Intellectual Property Rights.
Future Media (India) Limited

FMIL was started as the Groups media venture, which was aimed at creation of media properties in the ambience of consumption and thus gives various offers in active engagement to various brands and very vast consumers. FML gives various offers in engagement through its media properties like Visual Spaces, Print, Radio, Television and Activation.
Future Logistics Solutions Limited

Future Logistics Solutions Limited was incorporated as a separate entity from the future Group and is in the business of providing various logistics solutions, transportation and warehousing services for all group companies and third parties.
Future Axiom Telecom Limited

Future Axiom Telecom Limited is a joint venture with axiom telecom LLC, UAE. The company has 50 percent stake in Future Axiom Telecom Limited which is a joint venture company. The company would be engaged in sourcing and
wholesale distribution of mobile handsets, accessories and in setting up service centres for mobile handsets in India.
Pantaloon Food Product (India) Limited

Pantaloon Food Product (India) Limited was incorporated with the aim of sourcing. To provide the backward integration in food business of the
company. PFPIL has sourcing and distribution bases at all key cities across the country.
Future Knowledge Services limited

Future Knowledge Services Limited was incorporated on January, 2007 and is engaged in the business of business process outsourcing and knowledge process outsourcing.
Future Capital Holdings Limited

Future Capital Holdings Limited was formed to completely manage the financial services and business of Pantaloon Retail Limited. FCH soon became one growing financial services company. The company made its presence in various financial services and in various research projects.
Future Generali India Life Insurance Company Limited

Future Generali India Life Insurance Company Limited stared in October 2006. The company was started to be in the business of life insurance in India. The company got its licence to start the business in India on September, 2007. The company operates in Future money, and manages various assets over US$ 1 billion.
Staples Future Office Products Private Limited

Staples Future Office Products Private Limited was started in India in 2007. The company was incorporated to start in the business of all kind of business in office supplies, equipments and products. This company is a joint venture between the Future Group Holding and Staples Asia Investment Limited. The companys first retail outlet opened in Bangalore.
4.1.
STORE OPERATIONS OF FOOD BAZAAR:
The food bazaar is divided into four sub departments. These are fruits and vegetables, staples, food and non-food. These four sub departments as per other departments have team leader, team member, assistant department manager and department manager. The department manager reports to the KARTA of the store i.e. the store manager. The various activities of all the responsible heads have been assigned to them. The daily activity scheduling of
the team member, team leader, assistant department manager, department manager was also the part of my project. The daily activities of these designated heads were scheduled as per to give the better service to the costumers. Right from entering into the store till leaving the store, how will the various operational activities inside the food bazaar will be done are scheduled according to the time consumed. As food bazaar is one that offers the best
quality product at wholesale price to the customers with their choice of the product. As most of the stores of food bazaar are located within pantaloons, big bazaar and central. Sometimes food bazaars as per the need of the area are stand alone. As being within the big bazaar, pantaloons and central, the footfall for the food bazaar is the highest. It acts as strong generators for footfall. Food bazaar contributes the highest in comparison to the other departments of big bazaar. Food bazaar offers great varieties and discounts to the customers. The company gives various offers in daily consumption items, which include staples, soaps and detergents, oils, cereals and others. The primary segregation is done on the basis of various products. The various products include staples, fresh produce, branded foods and home care products. Food bazaar has unique method to improve its service to the customers. It talks to the Indian housewives and constantly learns from them, how to improve the service given to them. And it is at the forefront to constantly improve its services to its customers. Food bazaar has direct talks to the selected rural areas to provide better and fresh farm products to the customers. It established a direct
channel
between
the
centres
of
production and areas of consumption. The western shopping culture of touch and feel are offered through big bazaar. Thus it helps in providing the better service to the customer with better quality at lower prices. Thus to provide better service to the customers, the activity schedule of team member, team leader, assistant department manager and department manager has to be followed. It has been designed as per to provide the better services to the customer. When footfall is at peak during various offer events like Wednesday bazaar, where various offers are given to the customers on various products on all Wednesdays of the month. The various events such as pheli tarikh where offers are given to the customers keeping in mind that they are willing to spend on the products like clothes. Great exchange offer which gives the highest footfall as the customers can exchange their old stuff for the new one. Events like great Indian shopping festival where the offers and discounts are given on every product. This summer a new event was launched by big bazaar as Public Holiday Sale from 28th April to 1st May. There was a great response from the public for this event. Four days the footfall was the highest comparison to other events. It was due to the various offers and discount on the products which where unbelievable for the customers to believe, even the cash back cards were also given to the customers. As this time being an intern I was witness to all these event and it was great learning for me , how to manage the store, how various operational activities are done to give better
service to the customer when the footfall is at peak. The availability of the products, the concept of impulse buying is applied to the customers. Certain products are kept at the time of the billing near to the customers which he/she
could buy by just seeing the offer without any thought or planning. This is a good example of operational efficiency and marketing strategy. The self space availability to the products which are being sold at larger extent is given more space. The products which have god offers are kept at eye level to the customers so that, the offer can be witnessed by the customer. The ambience also plays a very important role in the food bazaar. The good ambience in the store gives customer a good sense of service by the store team. The ambience and signage also comes under the operations of the team. The billing at the faster rate when there is good customer response also affects the service to the customers. As no one likes to stand in queue for billing. Product placement of the products in the store sometimes attracts the customers to buy the product at an instant without planning. Also the interaction of the customers with the store team also affects the sales of the store. Sometimes it matters how efficiently one tell about the offers and discounts to the customers. In the store it also matters to check time by time whether the daily or weekly targets have been achieved or not. The various other activities are been taken into consideration. Sometimes the general meeting is done by the team leader with the team members, to know how the working going in the store in the event or on normal days also. These meeting are done other than the daily meetings. Also the department manager also
briefs to the team time by time, also checks the stock and gets information about the targets. Also sometimes the various issues related to the customers are solved by the team leader. The various running promotions and offers are going in their flow is checked by the department head, which he reports to the
KARTHA.
One of the main tasks of the department
manager and the team leader is to motivate its team time to time. If sometimes the target is not achieved by the team than its their responsibility to motivate their team to do better next time. Also it is the responsibility of the team leader to move the non selling products to the primary area if there is no sale improvement in that product. These day to day activities in the store by the store operations team brings out the better sales to the store and better service to the customers with less effort and resources.
4.2. DEPARTMENTS:
Food Bazaar is one of the most revenue gaining part of the Big Bazaar. There are four main sub departments of Food Bazaar which main it as one big unit. Fruits and vegetables, Staples, Food and Non-Food are the four sub departments. As from the name it suggests the fruit and vegetables department of the Food Bazaar comprises of each and every type of seasonal fruits and vegetables. The uniqueness of Food Bazaar is that the freshness of the products is always of better quality. It also contains section as farm fresh where they have very large variety of products. Also contains imported fruits
from different countries as per the need and demand of the consumers. The other department food and non-food comprises of the various products from the various branded companies. Big Bazaar also provides its own made various products for the consumers. It contains wide range of products with sections as ready to eat and fast to cook with many offers for the customers. Another main part of food bazaar is the staples department. Staples department is one of the most revenue gaining part of the food bazaar. The products available in this department are fast moving consumer goods. In this section the brand preference sometimes matters a lot for the consumers.
INTRODUCTION TO THE PROJECT
It was necessary to have an incisive insight in the subject before proceeding for analyzing and interpreting the result. The methodology in terms of data and analysis for the project and its objectives are highlighted below. Big Bazaar has been using unique promotional operational techniques since its inception that helps to maintain as well as increase its sales.
5.1. PHASE-1
ACTIVITY SCHEDULE:
The first phase of the project deals with the activity schedule related to the four departments of big bazaar i.e. food, non-food, staples and fruit & vegetables. The activity schedule is for the team members, team leaders and
department managers of the respective department. Thus the whole day to day activity of the concerned person is being scheduled according to the respective department. An activity schedule is a set of words which helps an individual to follow set of activities. Once an individual masters at these activities, it can perform better as an independent. It also helps in decreasing unwanted behaviours and helps individuals to stay focus with more efficiency. Activity schedules are simply directing tools that help an individual autism to accomplish activities better. with
These activity schedules help
individuals to promote visual learning. And makes them understand that what is expected from them. This helps in improvement in management and
provides self assistance to them. Activity schedules are great tools which help in performance of the individual in better way and in more efficient way as an individual. Improves ones
vocational skills, how to follow.
These
activity schedules help in providing the better service to the customers in more efficient way. As with respect to big bazaar where the footfall of the customer comes at peak point during events, these activity schedules help a lot to give an organised service to the customers. As providing the better services to the customer is the main motive of these activities.
FRUIT AND VEGETABLES DEPARTMENT

Food bazaar is one of the pillars of future group. Food bazaar offers wide variety of products through fruits & vegetables department, food department, staples department and non-food department. At food bazaar you will find the unseen variety of products of Indian bazaar and international market. Food bazaar has mix culture which offered convenience, hygiene and cleanliness of western touch and see touch feel of Indian culture by offering the products in open with various offers and discounts. Fruits and vegetables section of food bazaar gives a wide variety of both Indian and exotic ranges of fresh fruit and
vegetables
at
best
prices.
Fruits
and
vegetables department of food bazaar provides each kind of fruits of Indian range and foreign range throughout the year. Similarly in the vegetables section also, it provides wide range of variety. All the fruits and vegetables are offered at best prices with discounts and offers. One of the most important parts of food bazaar is that the fruits and vegetables which are provided by them are fresh from farm. Thus to provide better service to the customers from the section where the see touch feel is necessary as comparison to the other sections, the activity schedule is little bit different from other sections.
As a part of operation, big bazaar is also undertaking to reduce its warehousing costs through a consolidation process. As most of the stores in the country are located in the heart of the city supply chain management plays a important role. In the present scenario the customers are more demanding and asking for the quality of food. Now the on time delivery has become an important part of the operation. So there is needed to be on time always. Thus there are various challenges which the team member, team leader and department managers faces. These activity schedule which are been scheduled for the store team will help them to provide better services to the customers. The most challenging thing is the safety requirements which often the team faces. Proper handling is
mandatory
in
case
of
fruits
and
vegetables. The short shelf life of products also leads to the wastage. High order frequency and low volumes are often requires in this section of food bazaar. Thus for these perishable products cold chain supply with utmost care is required. To handle the customers and to maintain the hygiene and cleanliness in the store is also one of the major challenges for the store team. As in this section the consumers feels touches and satisfies him before making the decision to buy the product. Until the customer is satisfied, he/she will not proceed to buy the product. To maintain the ambience near the self is utmost important for the team member. To cope with the challenges of this department the activity schedule has been made in the same flow. The stock level is been checked from time to time by both the team member and also
from the team leader. One should always check about the damage product which should be always cleaned. Because the damage fruits or vegetables, give bad impressions on the customers mind. Department manager keeps the check in pick list and ensures both the team leader and the team member about the targets. FIFO checking is done by the team leader and also by the team member. Motivating the team member is also one of the most
important roles to play. The department manager keeps briefing the team leader and the team member about the targets. Its the team member to make consumers know about the various offers and discounts going on. Also the knowledge about the product is to be made clear to the customer. The activity schedule makes the team leader to check the new stock or the pending stock list. The FIFO checking is done to lesser the waste from fruits and vegetables. To deal with all the challenges and to maintain the standard of food bazaar the activity schedule is to be followed by the store operations team. Removing the non moving items to the primary spot is also necessary. Getting the payback form and explaining the various offers related to the product must be known to the customer. It is the duty of the team leader and the team member to better perform this activity. The sales are monitored from time to time, thus to make strategic marketing decisions according to it. The activity schedule is been made by keeping in mind the number of team members in the fruit and vegetables department. There should be no overlapping between the team members of both the shifts on certain activity. The timing in fruit and vegetables section of food bazaar is very important. It is one of the section in which the customers start coming at any time in the day right from opening of the store. In the past recent years food bazaar has gained an expertise in managing the farm fresh foods. Big bazaar has removed the traditional mandi route supply chain that traditionally present in Indian market. Big bazaar
direct links with the farmers has increased the quality of the products. The freshness of the products has been very good in recent years. Having a direct link with the farmers has been beneficial for the customers as well as for the store. Thus the whole store team has to maintain the quality. The main task for the team members, team leaders and department managers is to have to take care of all aspects like FIFO, lot management, product traceability, product recalls. Thus these activity schedules help in maintaining the proper atmosphere in the store with providing better services to the customers.
STAPLES DEPARTMENT
This section of food bazaar is also one of the revenue growing sections of the food bazaar. The staples section of food bazaar caters to the daily requirements of every Indian consumer. The daily needs of the customers are fulfilled in this section. It contains products like cereals, pulses, rice, flours. The staples product provided are under the well known brands and also provide various products from the farmers. This cereal section of the food bazaar is also known as the Golden harvest. Under it food bazaar sells, packaged as well as the loose cereals which can be brought by weighing on the spot. One of the most innovative idea that food bazaar recently started is live grinding. You can also buy the wheat grains and get them grounded in front of you by the live grinding. The staples section also provides the various spices of the well known brands and also like other products it also sells them loose. There is also the separate chill station which has various products like fresh paneer, milk, curd,
cheese, butter and beverages. Under this category all the products under the various popular brands are sold. The famous brands with their various offers and discounts are been sold to the customers. Even the ice- creams of the various brands comes under this section. The ice- creams of the various brands are provided under this category. Now the food bazaar has started one of the innovative sales of pickles. The pickles of various brands are available in the store, but sometimes the local taste is not there. Food bazaar has started selling of its own brand made pickles which are according to the local taste. Thus according to the geographical nature, the food bazaar section provides the pickles of various types which the branded companies are unable to make. The Golden Harvest includes the dry groceries contributes about the 30 percent of the sales of the food bazaar. The chill station which comes under the wet staples category contributes about the 10 percent of the sales of the food bazaar. The ambience of the store should be attracting to the customers because it is the starting point of all the marketing efforts. It creates an image in the mind of the people. As if a customer is comfortable in the store, it affects the buying behaviour of the individual. The store should appeal to his sensory perceptions and also must create the sense of belonging, sense of relationship in the mind of the customer during shopping. The environment
created in the store is all about getting together the exterior look, store interiors, the atmosphere in the store and the most important the events, the promotions and the themes which form a part of the retail store. The most important part of the staples is the local flavours are
involved in this section. The company has launched Food Bazaar masalas, which has local taste which are having high sales in their respective regions. The number of team members involved in the staples section is somewhat less than the fruits and vegetables section. The advantage with this section is that the level of safety is less as compared to the fruits and vegetables. The shelf life of the products is also very large. There is no need to take delicate care of the products. The best part of the staples is that the products are not very delicate and handling does not matter as compared to the other sections. So the team members do not have high attention. In this section the team member and the team leader, the most delicate part is to convince the customer about the quality of the product. The various products under the cereals demand good quality product so their much needed part of convincing the customers. Attending the customers and weighing the weights is the task the team member has to deal from time to time. The team leader should check about the stock status and keep update it to the department manager which forwards it to store manager. Repositioning of the products which are not much in sale or bringing up them with new offer. The department manager should brief the team leader and the team members about the happening in the store also motivating them to achieve the target. Monitoring sales and reporting it to the store manager is also one of the main tasks of the department manager. Thus the activity schedule for the staples section is less delicate as compared to the fruits and vegetables. But to attend customers and make them satisfy about the quality of the product is a major task. One should also update the sparsh software about the team member and team leader from the department manager. The software keeps checking the stock level in the store and keeps update about sales of the respective product.
FOOD AND NON-FOOD DEPARTMENT

This section of food bazaar is very vast with wide range of products. The food and non-food section is always seen as combined section in food bazaar. Under this section the products are available under the private owned brands of future group and also of the various other well known brands. Under the food section, comes product as under the label fit and healthy, chef zone and processed foods. While major non food contains cosmetics, deo, speak and spine, grooming, head to toe and various others. In food bazaar under this section there are many brands available for similar type of products. As for example there is near about 3-4 brands available in fresh juice section, favourite among them are the Real juice category. There are many newer brands also available in the store with various offers. The various brands under ready to eat category are available all time with
offers and discounts. Also under the food category lies the various products as biscuits, jams, various processed food as maggi, noodles, pasta and various others. Under the beverages comes tea, coffee, soft drinks, packaged juices, energy drinks, and packaged drinking water. Under the non food section come all the products which include sanitary, napkins, razors, shaving creams, shampoos, soaps, cosmetics, deodorant, lotions, hair oil, tooth paste, cleansers and various products under the daily needs. These products are available under the various trusted older brands and also under the newer brands. The various household care products
also come under the non food department. The product category under this section is very vast. The store team which works in this department must have the knowledge of each and every product. The team members compared to the other sections are more in number. All the team members must have the thorough knowledge of the products. The customer often asks for the specific product of certain brand. Some customers are brand loyal as they do not want to change their brand. For them one should have the known each product under the various brands. Thus the main task under this category is to update oneself with various offers and discounts. The sales is also important under this category, the items which are not much in sale must be removed and should again come up with exciting offers. As the products range is wide so to keep the track of each product is a difficult task. Most of the time in this section of food bazaar promotions and offers plays a very important role. The effect of impulse buying comes in this section of food bazaar. The customer many times gets attracted by the various offers and the discounts and buys the products which they didnt plan to buy.
They just buy these products only due to offers. Impulse buying plays a greater role in the store. But all these come with the promotions and offers. Thus this is also one of the most revenue gaining section of the food bazaar. It comprises maximum sales among the other sections of the food bazaar.
As most of the products in both the sections are packaged products. Thus the prices are being printed on them. Here the barcode plays important role if the price is missing, so it is the duty of the team member to check whether the barcode is on all the products. During the time of billing also the various offers and discounts are known during the time of billing by the barcode only. Also in food sections the products are delicate so they should be handled carefully. As the damaged products are being out of the stock and are not for the sale. Stacking the impulse items is also a very keen important work to do. The department manager keeps informing about the sales of the product which are not much in sale. Then the store manager takes a note about it. The ambience plays a role in the sales of the product. Many a times a product is in sales when comes in the eye level of the customers. The self space placement of the products also helps in the sales of the product. Refilling of the stock at the right time to match the need and the demand is necessary. The FIFO management, lot management must be done time by time. As the products in both the food and non food category have expiry dates after which they should not be sold. The products in both the category are the products which are sold whole year and are in demand at some peak time. The various events which are held in big bazaar from time to time have a larger impact on the food and non food
section of food bazaar. Exchange mela,
Wednesday,
maha sale, pheli tarikh etc, are various offerings for the customer from big bazaar. Time to time these offers increase the footfall and also increases the sales of the various products which are mainly for daily households
requirements. These also help in the mouth to mouth marketing for the offerings. The customers are more demanding and are brand loyal today. So the various strategies should be made keeping these thinks in mind. These activity schedules help the store team to better manage the customers during the peak hours and provide them the better service every time they visit the store. To satisfy the customer with any new product is a tough job. The environment in the store plays a important role in the sales of the product. One of the main tasks of the store team is to make the combination of the products with the attractive offers to make them notice to the customers. As for the newer products the customers can get to it. When they would be
familiar with product, sales of the product will
increase. The
self allocation of the products which are linked to each other and have to be buoyed together also depends upon the allocation. Team member must know about teach product and should know where are these products are kept. Ready to eat section is always on high. This section attracts the customers most. These activity schedule are been made as in such a way that there should not be any overlapping between them, so that the maximum time can be taken to provide the better service. Attending customer and keep updating them about is the most important part of this section. Food and non food section of food bazaar is one department which needs a lot of attention in every aspect. In terms of sales and also in terms of ambience, discounts and offers. Therefore the number of team members is more in the food and non food section as the self allocation of the products are changed from time to
time according to the offers and discounts available. The department manager motivates the team leader and team member about the targets. Also provides them the innovative ideas from time to time. Solving the staff issues are also one of the doing of the department manager. He is also liable to check the logistics for pending stock and for the new stock. And keep updating the team leader about the stock. As the need and demand should match each other rather than mismatch. Making report about the offers and also finding about the effect of the various events which are offered by big bazaar. These are all done by the department managers. The stock room should be updated with the new products and the sparsh should be updated from time to time, so that there should be balance between the demand and supply.
NOTE: The excel sheet related activity schedule of team members, team leaders and department managers of the respective departments of fruits and vegetables, food, non-food and staples is been attached with the document.
5.2. PHASE 2
OBSERVATION RESEARCH:
This part of the project comprises of the observation research done during after the completion of the second phase. During this phase of the project various observations were done during the whole period. How the marketing and operational activities are performed from a practical point of view. During this observation period came to know about the marketing activities of Big Bazaar. There are two types of marketing strategies that are used to promote any product. They are Above the line (ATL) and Below the line (BTL). These names reflect the business practices of advertising agencies. Agencies make commission on placement of advertisements in newspapers, magazines and cinema and on television, radio and billboards and it charges a fee that appears above the line on their bill. Traditionally ATL and BTL activities have been considered distinct. ATL refers to the all promotional activities done through mass media. This type of communication is conventional in its nature and is considered impersonal to customers. Below the line is an advertising technique which uses less conventional methods than usual specific channels of advertising. During this observation tenure got to know about practical retailing techniques and dealing with face to face with the customers. The important aspects of retailing to, deal with customers, to satisfy each and every customer with his/her demands. Retail management is a continuous process where one learns new things every day. In retail everyday one get a chance to meet new customers with different opinion, which makes us learn a lot about customer relationship management.
During this observation period also did observation as mystery shopper. It is a method which is used by many market research companies to measure quality of service provided by the companies. As a mystery shopper one get to know about the service provided by the company and the quality of products given by them. Various findings during this observation period as mystery shopper are: 1. Got a experience of desirable effective team work to provide better service to the consumers.
2. Generally youth and women are the large segment of customers in food bazaar. 3. The events such as mega sale offer, exchange offer, Wednesday offer, peheli tarikh, monthly bachat offer attract customers to buy more and more and also increase the footfall in the store. 4. Availability of various brands helps to attract large section of customers. 5. The various strategic decisions related to marketing and operational activities. 6. How to attract customers for impulse buying. About the basket of products.
During the observation research period also came to know about the operational activities done by the store team to maintain the balance between the demand and supply of the products. How the
products are
brought from the
storages and being kept in the store. The shelf space given to the products so that the consumer have an impact of the product. The major products are kept at eye level to the customers. The space allocated to the products is allocated on the basis of sales contribution. Products are to be displayed at eye level only at stimulated brand space. The brand blocking to be done vertically from top to bottom left to right, starting with private label. There should be proper display of signage so that the consumers do not get confused by the products.
It was seen that during big sale days number of customers are waiting in the queue for billing at billing counter. Every time they have to wait for very long time for billing. Sometimes it happens that many customers leave the products and to not purchase anything, these long queues deter customers to make purchases. Something must be done to remove this bug from billing counters.
A device named as Queue Buster
can be
used as the solution to this problem. It is a mobile shaped device which has barcode reader, card swipe reader and printer. By using this device customers can pay either by cash or by card to the person handling the device. This would reduce the shopping time of the customers and will also be helpful for the store operations team. And if the device does not accept the card, the customer can go with the required amount to the billing counter. The initial investment is high for these devices. The store operations team will have to be trained for using this device efficiently. But the results after applying the device will settle the initial investment. Big bazaar can also start the home delivery facility, which can be helpful in increasing the sale. These add on facilities will be helpful in increasing the sale and also increasing the loyal customer base.
5.3. PHASE 3:
QUESTIONNAIRE ANALYSIS:
Questionnaire analysis was done under the last phase of the project. This phase was done as the part of the exploratory research and was conducted to get the customers response about the Food Bazaar and all its departments. The questionnaire was framed in such a sequence to better know about the response. The survey was done with the sample size of 500 Food Bazaar customers at various outlets in the city. The survey was not done at any single Food Bazaar but it was done through the various outlets in the city. But most of the samples were taken from the Tarnaka and Ameerpet.
SURVEY TO FIND RESPONSE OF CUSTOMERS TOWARDS FOOD BAZAAR:
QUESTION 1 In a month how many times you visit big bazaar?

VALUES Weekly Fortnightly Monthly During promotions As per requirements FREQUENCY 185 90 70 105 50 PERCENTAGE 37 18 14 21 10
10% Weekly Fornightly Monthly During promotions As per requirement 14% 18%
37% 21%
As seen from the following pie chart that customers visit food bazaar weekly or fortnightly. The customers continue to come weekly because there is Wednesday bazaar for them and many other offers. But to increase the percentage of customers they should also include other products, to attract younger generations.
QUESTION 2 How is brands and products availability in the food bazaar?

VALUES Outstanding Excellent Good Average Bad FREQUENCY 224 125 100 41 10 PERCENTAGE 45 25 20 8 2
2% 8% Outstanding 20% 45% Excellent Good Average Bad 25%
From the above data it is clear that the customers are satisfied with the products and various brands available in the food bazaar. Thus the store should retain the existing brand and should also try to infuse new brands in the products. By this the customer satisfaction level can be increased.
QUESTION 3 What is customers perception about the price of food bazaar products?
VALUE Outstanding Excellent Good Average Bad FREQUENCY 170 130 100 70 30 PERCENTAGE 34 26 20 14 6
6% 14% 34% Outstanding Excellent Good 20% Average Bad 26%
The above data shows that the pricing of products in food bazaar is outstanding from the customers point of view. The pricing strategy should be retained with various offers and discounts for the customers.
QUESTION 4 How is customers experience about services in food bazaar?

2%
0%
19% 23% Outstanding Excellent Good Average Bad 56%
It is evident from the graph that the services to the customers are at good note. It means that the inside store environment is good in the store. Customers related problems are being resolved and they are satisfied with the services but still, it can e improved.
QUESTION 5 In offer days the shopping experience in the store?

0% 13% Outstanding 18% 45% Excellent Good Average Bad 24%
It shows that the customers are satisfied with the offers and discounts given to them by food bazaar. The cheap price of products in food bazaar moves it ahead as compared to its competitors. The low prices and better quality keeps customers attracting to shop in food bazaar.
QUESTION 6 How is ambience in the store?

VALUE Outstanding Excellent Good Average Bad FREQUENCY 47 60 153 227 13
Bad
Average
Good
Excellent
Outstanding 0 50 100 150 200 250
Food bazaar is a place to buy many products under one roof, which facilitates a certain kind of ambience and decorum to the people that they come again and again for shopping. The ambience also plays an important role in customers purchase, which thus helps in increasing the sales.
QUESTION 7 How is product placement inside the store?

VALUE Outstanding Excellent Good Average Bad FREQUENCY 127 283 47 43 0
300 250 200 150 100 50 0 Outstanding Excellent Good Average Bad
The product placement is excellent in food bazaar which helps in unplanned shopping by many customers and also helps in impulse buying by customers. Thus it is easy for the customers to find the required product inside the store and helps in providing better services to them.
QUESTION 8 The attractive feature for the customer to come for shopping in food bazaar is?
VALUE Price Quality Product Services None FREQUENCY 312 70 90 23 5 PERCENTAGE 62 14 18 5 1
1% 5% 18% Price Quality Products 14% Services 62% None
As food bazaar is known for its variety of options. It is evident that people come to food bazaar as they get variety of products under one roof at cheaper price. It provides products with better quality and services which encourages them to visit again and again.
QUESTION 9 Are you satisfied with the billing facility at the store?
VALUE Yes No FREQUENCY 233 267
No
Yes
210
220
230
240
250
260
270
Majority of the customers are not satisfied with the billing facility at food bazaar. As on the events as Wednesday bazaar or pheli tarikh, the footfall increases and customer have to wait in queue for billing. Thus the billing facility must be somewhat improved, so that they dont have to wait in long queues for billing.
QUESTION 10 Is it easy to move trolley in the store?

VALUE Yes No FREQUENCY 259 241
No
Yes
230
235
240
245
250
255
260
265
The customers are satisfied with the spacing in the food bazaar as they can move freely with their trolley. With more space they can move with their products they took and this can mentally make them free to shop.
QUESTION 11 Overall opinion about food bazaar

0% 14% 23% Outstanding Excellent 24% Good Average Bad 39%
Overall the consumers are satisfied with the pricing, products, services and ambience provided to them by food bazaar. As compare to its competitors food bazaar is ahead from them in satisfying the consumers.
6.1. SUMMARY OF FINDINGS AND CONCLUSIONS:

All the findings are briefly discussed below: ACTIVITY SCHEDULE- The daily activity schedule of the team members, team
leaders and department managers was done during the starting phase of the project. The activity schedule of the store team was done to better provide the services to the customers and to better the efficiency. The overlapping
activities were removed and the remaining time was utilized to do other activities.
OBSERVATION RESEARCH- During this phase project it was a great learning

experience of desirable team effect. The exposure of various marketing techniques and various operational techniques were of great learning. The footfall is always on peak during the events at big bazaar. Overall the food bazaar is hot spot for shopping for the daily needs. The unique techniques and concepts make food bazaar as leader in daily needs. But still there is scope of improvement in some sections of department and services can be improved by taking new things in consideration. By the use of latest technology one can improve the service to the customers which can be helpful for the customers as well as for the store operations team. Some bugs are still to be removed from the store operations. These will save the time and will increase the footfall.
QUESTIONNAIRE ANALYSIS- The questionnaire was done to get the

response from the customers about the Food Bazaar. It was done to get know about the response of the customers to better the service. Most of the customers were satisfied with the offers and brands in the Food Bazaar departments. The ambience and service was excellent as per the survey. Also there were few important points suggested by the consumers. Customers get loyal to the shopping centres where their response is being noticed. By this
analysis few points for the improvement can be gathered to improve the service to the customers.
6.2. RECOMMENDATIONS:
Based on the findings of this project and observation of the entire marketing and operational activities carried out for promoting various offers and campaigns of Food Bazaar, following recommendations are given: During the observation period it was seen that most of the offers given for Wednesday Bazaar are repeated. This leads to focus on other products and also decreases the customers urgency towards big bazaar. Also some products sell well even without the offers. Offers are mainly on food items, other categories are also should be promoted. As the sale of some stores do not increase in spite of advertisements and promotions so more focus should be given to them. Big Bazaar should aim at opening of stores in tier 2 cities also. Food bazaar should shift focus in attracting the younger generation and connecting to them. Food bazaar should also start retailing through internet and web based technology. Customer care assistance should be given to customers about loyalty program. Job rotation policy should be implied, as it will enhance their knowledge and job profile.
After sales service should be more effective. Billing should be easier and faster.
6.3. REFRENCES:
Articles and Journals

Blattberg, R. C. and S. A. Neslin, (1990) Sales Promotion: The Long and the Short of It, Marketing Letters, 1, 81-87. Huff, L. C. and D. L. Alden, (1998) An Investigation of Consumer Response to Sales Promotions in Developing Markets: A Three Country Analysis, Journal of Advertising Research, 38(3), 47-54 Lee, C. W., (2002) Sales Promotions as Strategic Communication: The Case of Singapore, Journal of Product and Brand Management, 11(2), 103-114 Narhinen, M., A. Nissinen, Puska, P., (2000) Changes in Supermarket Sales Before and After a Staged Health Promotion Campaign, British Food Journal, 102(4), 308-319 Peattie, S., (1998) Promotional Competitions as a Marketing Tool in Food Retailing, British Food Journal, 100(6), 286-294
Books
Market research an applied orientation , 4th edition- Naresh k Malhotra Principles of Marketing by Philips Kothler Business Research Methods By William G. Zikmund
WEBSITES
www.futuregroup.com www.bigbazaar.com Business.mapsofindia.com/India-retail-industry
6.4. ANNEXURES:
QUESTIONNAIRE
1. In a month how many times you visit food bazaar? a) Weekly b) Fortnightly c) Monthly e) As per requirement d) During promotions
2. How is the brands and products availability in food bazaar is a) Outstanding b) Excellent c) Good d) Average e) Bad
3. What is the customers perception about the price of Food Bazaar products? a) Outstanding b) Excellent c) Good d) Average e) Bad
4. How is customers experience about services in Food Bazaar? a) Outstanding b) Excellent c) Good d) Average e) Bad
5. In offer days the shopping experience in the store is a) Outstanding b) Excellent c) Good d) Average e) Bad
6. How ambience in the store is?

a) Outstanding
b) Excellent
c) Good
d) Average
e) Bad
7. How is the product placement inside the store? a) Outstanding b) Excellent c) Good d) Average e) Bad
8. The attractive feature for the customer to come for shopping in Food Bazaar is? a) Outstanding b) Excellent c)Good d) Average e) Bad
9. Are you satisfied with the billing facility at the store? a) Yes b) No
10. Is it easy to move with the trolley in the store? a) Yes b) No
11.Overall opinion about Food Bazaar. a) Outstanding b) Excellent c) Good d) Average e) Bad

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A REPORT ON IMPROVEMENT IN PRODUCTIVITY OF STORE OPERATIONS IN FOOD BAZAAR

By AJIT SINGH (11BSPHH010059)

Page | 1 , IBS Hyderabad

A REPORT ON IMPROVEMENT IN PRODUCTIVITY OF STORE OPERATIONS IN FOOD BAZAAR

Prof. A Srikanth (Marketing & Strategy, IBS Hyderabad)

DATE: 4th June 2010

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DATE: 4th June 2010 PLACE: Hyderabad

Mr. Vasant Mohan

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Authorization....................................................................................3 Acknowledgment...............................................................................4 Executive Summary............................................................................7

CHAPTER-2 (INDUSTRY OVERVIEW)

CHAPTER-3 (COMPANY OVERVIEW)

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CHAPTER-4 (OPERATIONS IN FOOD BAZAAR)

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1.2. OBJECTIVE OF THE STUDY:

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1.4. LITERATURE REVIEW:

1.5. LIMITATIONS OF THE STUDY:

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2.2. STRUCTURE OF INDIAN RETAIL INDUSTRY:

2. FOOD Vs NON FOOD DISRIBUTION

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2.3. GROWTH DRIVERS:

Page | 19 , IBS Hyderabad

5. INCREASED SPENDING OF RURAL CONSUMERS

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2.4. KEY CHALLENGES:

2. HIGH COSTS FOR THE ORGANIZED SECTOR

4. CORRECT MERCHANDISE MIX

Page | 24 , IBS Hyderabad

3.5. SWOT ANALYSIS STRENGTHS

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3.1. COMPANY OVERVIEW:

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: leading to purposeful thinking. : to be open and receptive to new ideas and

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3.4. FOOD BAZAAR:

FORMAT AND MODEL OF FOOD BAZAAR

Page | 33 , IBS Hyderabad

CONVENTIONAL SUPERMARKET- A conventional supermarket is a self

HYPER MARKETS- Hypermarkets are combination stores that unite

CHAINS- A chain retailer operates multiple outlets under a common

FRANCHISING- Franchising is one of the most common modes of expansion

Page | 35 , IBS Hyderabad

3.5. SWOT ANALYSIS:

3.6. AFFILIATE COMPANIES:

Page | 37 , IBS Hyderabad

Future Brands Limited

Future Media (India) Limited

Future Logistics Solutions Limited

Future Axiom Telecom Limited

Page | 38 , IBS Hyderabad

Pantaloon Food Product (India) Limited

Future Knowledge Services limited

Future Capital Holdings Limited