“Promotional activities

&
effects on consumer purchase”

At

Bangalore

Submitted in partial fulfillment of the requirements for the award of

The degree of

Master of Business Administration

Dissertation Submitted to

Punjab Technical University

Jalandhar
Submitted By

Krishna Kumar Mishra

Regd No--821240031
Under the guidance of

Prof. K.N.Chadha
(Faculty, Department of management studies)

#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara,

BANGALORE – 560 032 (2008-10)

 (Certificate by the College on Letter Head)

Date:

CERTIFICATE

This is to certify that the Project titled “__Promotional activities & its effects on

Customer Purchase” carried out by Mr. / Ms. Krishna Kumar Mishra (REG

No.821240031) is a bonafide student of International Institute of Business Studies,

Bangalore. This Project Work has been carried out in partial fulfillment for the award

of Degree of Master of Business Administration under Punjab Technical

University, during the year 2008-10.

It is hereby certified that he / she has completed the project satisfactorily.

Asst. Dean Director

* * * * *

(Certificate by the Guide on College Letter Head)

Date:
 GUIDE CERTIFICATE

This is to certify that the Project titled “Promotional activities & its effects on
Customer Purchase” is a bonafide work carried out by Mr. / Ms. Krishna Kumar Mishra
in partial fulfillment for the award of Degree of Master of Business Administration
under Punjab Technical University, during the year 2008-10.

This Project Report has been approved as it satisfies the academic requirements in
respect of project work prescribed for the award of MBA Degree.

Name of the Guide: Prof. K. N.Chadha

Signature of the Guide:

Name of the Student: Krishna Kumar Mishra

Signature of the Student:

External Examiner Internal Examiner

(Declaration by the student on Plain Paper)

 DECLARATION

I hereby declared that this project titled ““Promotional activities & its effects on
Customer Purchase” is submitted to the Punjab Technical University as a partial
requirement for the award of Degree of Master of Business Administration,
during the year 2008-10.

It is the record of an original & independent study carried out by me, under the able
guidance and supervision of Professor. K. N.Chadha of International Institute of
Business Studies, Bangalore. This project report has not been submitted earlier
by me or by anybody else for the award of any other degree in any University in
India or abroad.

Date : Signature of the Student

Place : ( Name of the Student )

* * * * *

(Certificate by the Company of On Company’s Letter Head)

Ref. No. : Date:

 CERTIFICATE

This is to certify that Mr. / Ms. Krishna Kumar Mishra of International Institute of
Business Studies, Bangalore, has completed the Project titled “ Promotional
activities & its effects on Customer Purchase” under the guidance of Mr. / Ms.
_Sandeep (DM) during the year 2009-10.

During the stay in our organization, Mr. / Ms. Krishna Kumar Mishra were very useful
to our organization, with his / her Managerial knowledge & have successfully
completed the dissertation. We wish him / her best of luck in all future endeavors.

For Future group Ltd,

(Name & Designation of the Signatory)

* * * * *

(Acknowledgement by the Student on Plain Paper)

ACKNOWLEDGEMENT
I would like to express my sincere thanks to the Director & Management of
International Institute of Business Studies, Bangalore, for their valuable guidance &
support. I am extremely thankful & grateful to Prof. K. N.Chadha for his / her constant
guidance & encouragement throughout the study.

I would like to express my sincere thanks & gratitude to Mr. / Ms. Chandrasekhar
(SM) Sandeep (DM) and Pharukh (HR) of (Big Bazar, KSRTC Mysore Road), for his /
her support & guidance during my stay in their organization.

I would also like to express my devoted thanks to my beloved parents & my friends
for their relentless support & assistance to make this project a reality. Last but not
the least; I would like to thank all my respondents for their co-operation &
participation in data collection, which has enabled me to complete the project
successfully.

Date : Signature of the Student

Place : ( Name of the Student )

* * * * *

Executive Summary
Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are
fighting to win the hearts of customer who is God said by the business tycoons. There is always a ‘first
mover advantage’ in an upcoming sector.

In India, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the buying habits of
people. It has created formats, which provide all items under one roof at low rates, or so it claims. In this
project, we will study its marketing strategies and promotional activities.

The research titled ‘A Study on the effective promotional strategy which influences customer to purchase a
product of Big Bazaar’ helps us to understand the effect of promotional strategy which is responsible for
attracting customer towards big bazaar This study helpful to top level management to improve the present
promotional strategy of BIG BAZAAR.

The report deals with the impact of promotional activity which attracting customer towards big bazaar.

The research was carried out as per the steps of Marketing Research. The well supportive objectives were
set for the study. To meet the objectives primary research was undertaken. The data collection approach
adopted was experimental research & survey research.

The instrument used for the data collection was observation & questionnaire. The target respondents were
the visitors of BIG BAZAAR, with the sample size of 100 for the study of sales management of the company.
Tables & charts were used to translate responses into meaningful information to get the most out of the
collected data. Based on those the inferences have been drawn with peer supportive data.

TABLE OF CONTENTS
CHAPTER CONTENTS PAGE NO
NO.
1 Introduction 01-20
o Title of the study
o Theoretical background of topic
o Objective of the study
o Scope of the study

2 Research Methodology 21-30

o operational definition of concepts
o Hypotheses
o Scope
o Methodology
o Sample design& sample size
o Tools& technique for data collection
o Plane analysis
o Limitation
o Overview of chapter

3 Review of Literature
o My learning experience in the company
o Analyze and interpret findings
o SWOT analysis of the big bazar

4 Profile of the company / Organization / System 31-40

o History of Retailing
o Product& Services
o Organization structure
o Competitors
o No. of the Branches of Big Bazar

5 Analysis and Interpretation of Data 41-80

6 Summary of Finding, Conclusion and 81-95
Recommendations
7 Bibliography

8 Annexure
 INTRODUCTION
TITLE OF THE STUDY
“A STUDY ON PROMOTIONAL ACTIVITIES & ITS EFFECT ON CUSTOMER
PURCHASE”.
THEORITICAL BACKGROUND OF TOPIC:

Promotion is fundamentally a tool to help apprise consumers of products and services available to
them. However, promotional activities today include various forms of advertising as well as promotional
gimmicks such as dirigibles at football games, coupons, and frequent flier miles. The goal of promotion is
no longer simply product awareness, but brand awareness, product loyalty and even corporate image.

“This includes advertising, sales promotion, publicity, and personal selling, and refers to the
various methods of promoting the product, brand, or company”

Many different promotions have come under criticism, particularly when they are judged to be illegal
or unfair. Bait-and-switch refers to the practice of advertising one product at a low price, but having none of
that product on hand when consumers arrive to make the purchase. Conveniently, this technique results in
the seller having other, similar, more expensive products available.

Putting aside the issue of promotional activities that are illegal, there remain examples of promotions
that may be unscrupulous, or perhaps merely prejudicial. The potential for this arises when promotional
activities are not directly associated with the product or service that is ostensibly being promoted.

As an example, Virginia Slims sponsored a women's tennis tournament for many years. The sport of
tennis received the financial backing, and the cigarette was associated with a popular sport and received
considerable publicity as its name was mentioned in legitimate sports coverage.

Promotion is an intricate part of market mix. Marketing mix includes….

o Product

o Price

o Place, and

o Promotion

The activities of the first three Ps -- product planning, pricing, and distribution -- are performed
mainly within the firm or between the firm and its marketing “partners.” With promotional activities, a firm
communicates directly with potential customers.

All the promotional activities must be integrated to deliver a consistent and positive message. A
multi-media promotion campaign is usually more effective than any promotional activity alone.

For example, if a company is launching a new product or program, it can contact the media to get
free press and then run an advertisement offering information, combined with offering sales promotion,
direct marketing by mail or phone, and product demonstration or a visit by sales people
 In developing a promotion program, a company must first determine the target audience, the most
important objectives, and a promotion budget and then design the promotion activities accordingly.
Promotional objectives can include providing product information, stimulating demand, increasing store
traffic, differentiating products, building a brand image, reminding current customers about product benefits,
countering competitors’ offers, responding to the news, smoothing out seasonal demand fluctuation, and
improving customer relationships.

Promotion must be integrated into a firm’s strategic planning because all elements of the market mix
-- product, price, place, and promotion -- must be coordinated in order for a promotion program to be
successful.

Promotion is an attempt to influence. Promotional activities are designed to inform, persuade, or

remind the market of the firm and its products and ultimately to influence consumers’ feelings, beliefs, and
behavior. A successful promotion program should include all the communication tools that can deliver a
message to a target audience.

Promotion can be loosely classified as:--

o Below the line

o Above the line

The promotional activities carried out through mass media like television, radio, newspaper etc. is above the
line promotion.

A. BELOW THE LINE SALES PROMOTION:

The terms 'below-the-line' promotion or communications refers to forms of non-media communication, even
non-media advertising. Below-the-line promotions are becoming increasingly important within the
communications mix of many companies, not only those involved in FMCG products, but also for industrial
goods.

Some of the ways by which companies do BTL (below the line) promotions are by exhibitions, sponsorship
activities, public relations and sales promotions like giving freebies with goods, trade discounts given to
dealers and customers, reduced price offers on products giving coupons which can be redeemed later etc.

Below the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing
pressure on the marketing team to achieve communication objectives more efficiently in a limited budget,
there has been a need to find out more effective and cost efficient ways to communicate with the target
markets. This has led to a shift from the regular media based advertising.
A definition of below-the-line sales promotion given by “Hugh Davidson”
“An immediate or delayed incentive to purchase, expressed in cash or in kind, and
having only a short term or temporary duration”.

SALES PROMOTION: An incentive to encourage the sale of a product/service e.g. money off
coupons, buy one, get one free.

Methods of “below the line” Sales Promotions:

1. Price Promotion:

Price promotions are also commonly known as" price discounting". These can be done in two ways:

 A discount to the normal selling price of a product, or

 More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand reputation or just a
temporary sales boost (during the discounts) followed by a lull when the discount would be called of.

2. Coupons:

Coupons are another, very versatile, way of offering a discount. Consider the following examples of the use
of coupons:

- On a pack to encourage repeat purchase

- In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer.

- A cut-out coupon as part of an advert

- On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate – this is the proportion of the
customers actually using the coupon.

It must be ensured when a company uses coupons that the retailers must hold sufficient stock to avoid
customer disappointment.

Use of coupon promotions is often best for new products or perhaps to encourage sales of existing products
that are slowing down.

3. Gift with purchase:

The "gift with purchase" is a very common promotional technique. In this scheme, the customer gets
something extra along with the normal good purchased. It works best for

- Subscription products (EX: Magazines)

- Consumer luxuries (EX: Perfumes)

4. Competitors and prizes:

This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost
up sales for temporary period and ensure usage amongst first time users.

5. Money Refunds:

Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer.
Customers often view these schemes with some suspicion – particularly if the methods of obtaining a refund
looks or onerous.

6. Frequent User/Loyalty Incentives:

Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the
many frequent flyer or user schemes used by airlines, train companies car hire companies etc.

7. Point-Of-Sale Displays:

Shopping habits are changing for the people living in metropolitan cities. People prefer big retail outlets like
Big Bazaar to local kirana stores. Most of the decisions of buying are taken by the virtue of point-of-sale
displays in these retail outlets.

SOME INTERSTING EXAMPLES OF BTL PROMOTION

Most of the big brands are following the suit of BTL promotion because of rising prices of media based
promotion, advertising clutter and increased impulse purchasing.
Some of the interesting examples are:

Most of the educational institutes like career launcher, Time and PT are holding informative workshops and
free tests for students which give a direct interaction of these institutes with the target customer and hence a
suitable platform to sell themselves.

Ring tones and music videos on cell phones are helping the entertainment industry to promote for a music
video or a movie for dirt-cheap rate as compared to media promotion.

Various companies sponsor sport events to promote their brand, but nowadays media companies like
Hindustan Times are holding weekly events throughout the country in which companies can put up their
stalls, display banners and posters and arrange for some fun activities.

These events give the companies a platform at very low price to promote their brand and increase visibility
among target consumer. These companies also give discount coupons to winners in the games, which in turn
boost the sales of the products and ensure that first time users try these products as well.

Pepsi organized an inter school cricket event for 425 schools across 14 cities which did wonders for the
company by promoting the brand amongst the right target customer for almost no cost.

Most of the pharmacy companies do BTL promotion by getting shelf space through doctors to display their
products or by giving away free calcium tablets again through doctors, knowing that for a patient a personal
advice from a doctor would hold more value as compared to a commercial advertisement.

Another interesting BTL promotion was by NIKE, an athlete dressed up in Nike sportswear could be seen
jogging on an elevated treadmill for the whole day on National Highway 8, Delhi.

BTL promotions are gaining popularity among all big companies nowadays considering their effectiveness
because of the "individual customer promotion" at a price, which is much lesser than the normal media
promotions.

ABOVE THE LINE SALES PROMOTION:

The terms 'above-the-line' promotion or communications refers to forms of mass media communication,
even media advertising. Above-the-line promotions are also becoming increasingly important within the
communications mix of many companies.

The promotional activities carried out through mass media like television, radio, newspapers etc. is
above the line promotion.

1. Television:

It is most attractive mode of communication to customers. The company can reach very fast through this
media to the customers. The investment for this mass media is high. During the festival season and
whenever the special events will be held in the Big Bazaar they use to advertise their products through this
mass media. Example in “SABSE SASTA 4 DIN” Big Bazar taken source by.

2. Radio:

It is also another mode of advertising of the company’s products. In urban cities the people listen to the radio
whenever they will be on the way to their offices or home or in the buses, so company advertise their
products in radio. Example Big Bazar have been taken source by FM Rdio 98.3, Radio Mirchi, etc.

3. Newspaper:

It is the print media which the customers get attracted and also they can get the clear information of the
products, so company use this type of media to reach their products to the customers. The company inserts
their product pomp-lets in the newspapers and also they advertise in newspapers. Example Times of India,
Bangalore Times, etc.

Promotional offers provided in “BIG BAZAAR”

 Price Discount: Big bazaar are famous for their “price discounting” because all the 365 days in a
year there will be discount on the products. The Big Bazaar celebrates the festival i.e. “SABSE
SASTHA CHAAR DIN”, in which the company provides more of price discounts. Another occasion
which they provide price discounts is “EXCHANGE MELA”. Customers get some off on their
purchase for particular product.

 Coupons: The Company also provides this offer to attract the customers to the store. By this offer
the customer get off in the price of the products. Another mode of providing the coupons, for EX: if
the customer shop for Rs.1000 then the company provides a coupon that will get off on purchase of
next purchase.
  Gift with purchase: This is another mode of promotion to attract the customer. Company gift an
item to the customer on purchase of company mentioned price. Gifts like perfumes, magazines etc
are provided to the customers for their purchase.

 Pomp-lets: The Company also sends some of employees to the residential areas, traffic zones to
distribute the pomp-lets which include the details of the offers of products.

 BUY GET1 1 Free: This is the most attractive promotional offer which Big Bazaar follows to
attract the customer. The most of customers who visit to Big Bazaar ask more for this offer.

Research Methodology
The study was made through a survey in Big Bazaar and seeks the opinions and suggestions of the
respondents towards Big Bazaar. The process included as follows:

 Explaining the respondents about the objectives of the project.

 Get the respondent’s fill the questionnaire in the most effective manner.
 Seeking the opinions and suggestions on the various areas where Big Bazaar can improve and build
itself much stronger in city.
 The research design is descriptive in nature as the study includes the collection of data through
questionnaire and group discussion.

Hypothesis:
 Income of the customer plays an important role in demographic aspects.
 The person visits more number of times, he will become potential customer for company.
  Brand availability plays an important role in consumer purchasing decision.

SCOPE OF THE STUDY:

The study will cover the overall customer opinion survey on promotional activities and its effect on
their purchase and will be restricted to Big Bazaar (Mysore road) Bangalore only. The promotional activity
provides extra incentive to consumer to purchase the product. Promotional activity is a way of appealing to
price sensitive consumer. It is also a way of generating extra interest in product or ads. The promotional
activity can be used as a way of building or reinforcing brand equity. The promotional activity like
advertising decreases the likelihood that a consumer will switch to an alternative product. The study will be
done to analyze the promotional activities and its effect on customer purchase in Big Bazaar and the
responses will be related to the project done period only.

TOOLS & TECHNIQUES TO COLLECT THE DATA:

 Primary Data

The primary or first hand was collected with the help of handling out the questionnaires for the
survey and also through conducting group discussions in the Big Bazaar. The respondents were asked
how they feel about Big Bazaar, its promotional offers & their shopping experience & what are the
things that need to improve were also discussed in length at the discussions.

Method of Collecting Primary Data

 Questionnaire

Method of collecting Secondary Data

The major source of secondary or supporting data is internet. The information on Retail industry and
Company Profile of Big Bazaar as whole and the brand was collected from the internet.

 Indirect Responses

Information is also gathered from the executives of Big Bazaar and the employees.

METHOD OF SAMPLING & SAMPLE SIZE:

SAMPLING METHOD:

The researcher now decides on sampling plan. Here the researcher has to decide on the following options:

 Population: Who is to be surveyed? The researcher must define the target population, which is to
be sampled.
 Sample Unit: Once the population is determined, a sampling unit must be developed; then the
sampling frame, so that everyone in the target population has equal chance of being sampled. Here in
this research the foot falls in the store are the sampling units.

SAMPLING SIZE:

It is not necessary to sample the entire population. In this research, sample size is 100.

SAMPLING PROCEDURE:

To obtain the representative sample, a probability random sample can be drawn. In this study the method of
selecting samples is random. The sampling is based on age group, gender, marital status, occupation and
income and also according to others factors like reasons of visiting, awareness about promotional offers, and
lot more.

SAMPLE CHARACTER:

Respondents who visit Big Bazaar outlet were sources of data collection.

SAMPLING PLAN:

Sampling Unit : Customers

Sampling Method : Convenience sampling

Sampling Size : 100 Customers

Sample Area : Big Bazaar (Mysore road-KSRTC)

DATA COLLECTION:

Primary data are gathered through direct interview added questionnaires.

A questionnaire consists of questions presented to respondents for their answers. While preparing the
questionnaire the researcher has to carefully choose the questions & their forms, and sequence them in
proper order. The sequence should be in a logical order. The form of questions asked can influence the
response. The questions can be open ended or close ended.

An open ended question allows the respondents to answer them in their own words. These questions
always reveal more because they do not constrain respondents answer.

The close ended questions pre-specify all the possible answers. These questions provide answers that
are easier to interpret and tabulate.
 The questionnaire must be simple, direct, unbiased and wording should be pre-tested with a sample
of respondents before it is used. The main thing is that questionnaire should create interest among the
respondents.

DATA ANALYSIS:

Data are useful only after analysis. Data analysis involves converting the series of data recorded
observations into descriptive statements and/or inferences about relationships. The survey will be carried out
in Big Bazaar Bangalore, and the sample size of 100 customers of Big Bazaar will be taken.

The information gathered will be formulated in the form of a coding sheet and the appropriate Pie-charts and
Bar-charts will be used for easy understanding of the project work.

TOOLS:

A few tools such as rating, graphs, pie charts etc. are being used for analysis questionnaire is
distributed to the individual interviews an special care has to be taken to make he/she feel comfortable so
that, he/she could answer all the questions. This method is followed to get unbiased answers.

TECHNIQUES OF ANALYSIS:

The data collected from the customers are transcript to the worksheets in the form of tally bars and
analyzed by drawing tables and graphs, inference were drawn on a marketing concepts and conversation.
Based on the marketing concepts findings of the research were drawn and recommendations are made.

REASEARCH DESIGN:
It is descriptive research. The study was based on both primary and secondary data. The primary data
was collected through asking the questions consisting of following categories:

o Close questions
o Open-ended questions

Secondary data was collected through company websites, journalism discussions with company guide.

Information will be collected directly from the people of the Bangalore who visit Big Bazaar (Mysore road-
KSRTC). The survey data collected during the study includes the data collected during the study includes
the data collected through questionnaire, face-to-face interview with the people of Bangalore who visit Big
Bazaar (Mysore road-KSRTC).

LIMITATIONS OF THE STUDY:

 Every research is carried under some boundaries and this research is not an exception. It is not
possible for any market study to make it accurate due to many hurdles in the collection and computation of
data. Some limitations of the study are listed below:

 The sampling frame to conduct the study has been restricted to Bangalore city only.
 Respondents show reluctance towards giving correct information.
 The opinion of the respondents may not represent the whole population.
 The customer’s opinion might have been biased and may not represent the whole population of the
city.
 Due to the limitations of time, a larger respondent base could not be covered and was limited to a
sample size of 100 respondents.
 There might have been tendencies among the respondents to filter their responses under the given
conditions.
 Most of the customers were busy with their daily use. Due to which some of the respondents were
not responded proper.
 Findings of the study are based on the assumption that respondents have disclosed accurate
information.

Overview of chapter scheme

In today’s market scenario it becomes very important for the retailer to analyze the various
promotional activities. Promotional activities play a major role in bringing the customer and motivate
him to purchase the product. In today’s non-traditional retail format where all the products are
available under one roof customers always looks for a better deal through various promotional offers
given by the retailer.

Hence it becomes important for the retailer in analyzing to what extent the promotional activities are
able to bring the customer to the business point and is motivating him to purchase the product. These
help in framing effective promotional activities better than the competitor and survive in the retail
market where there are many number of players and has high competition.
 REVIEW OF LITERATURE
Marketing becomes a complex term when it comes to the Retail industry. Marketing
has evolved on a large scale and gained significance from the mid 90’s after the much cherished Prof.
Phillip Kotler introduced it in a scientific manner and revealed its amazing implementation results.
Marketing simply as stated by American Marketing Association, “It is the process of planning and executing
the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives". Ever since the concept of Marketing has been adopted in
India it has been used in different contexts and the results have also been different than the ones in other
countries. Thus marketing in India has been a topic of attraction of many researchers recently. In current
economic conditions of favorability the Indian economy is experiencing the peak of the activity and thus
application of marketing is more than visible in each and every product.

Also since marketing affects the visibility of the product, success of product directly depends upon it.
Current latest happenings are due from the FOOD RETAIL sector that is under the scope of my study. Food
retail is a very latest revolution that Indian market is experiencing and adopting. Every month or the other a
new Food Retail is popping up places, this is a completely new concept in India and there is a large
untapped market for this which is the reason of such aggressive expansion by companies. Earlier this market
was captured by individual and government traders and large profits were viable because of no competition,
thus they regularly achieved higher profits. Even today a large share of market is occupied by these traders.
The market potential is so huge that Multinational Companies have shown interest in this sector of FOOD
RETAILS. The main USP of these retails is quality of offerings and ease & transparent process of
transactions. There are no evident blockages in this particular retail segment and it is indispensable to life so
used rather very regularly and on a large scale unlike other segments such as clothing! Thus the market is
large, number of consumers huge and number of offerings less, expensive and of low quality.
MY LEARNING EXPERIENCE IN THE COMPANY:

If he/she wants to swim, then he/she should learn from his/her own or he/she should take a coach
from the coach. He/she can’t swim just by taking the instructions by mouth. It’s better to get down in the
water and learn. We will get the practical knowledge only when we experience it. This practical experience
will help more to learn than the theoretical learning.
I had under gone a 10 weeks project at Big Bazaar. And along with that I had learn a lot of practical
things from the corporate world. From this project I came to know that customer buying behavior and taste
and priority preferences of customer towards retail sector and competition level in the sector and along
with that the management is responsible for increasing sales and revenue of the company, and
what management makes to attract the customers through promotional strategy which influencing
purchase decision of buyers.
From this project now I came to know that how to carry out promotional activities in a
systematic manner in the competition level. This practical knowledge of project made me to understand in
future to stand in any corporate world.
Few things which are advantageous theoretically, will not be advantageous in practical situation such
as making decision, bottom up management, implant certain ideas, changes in certain policies, methods etc.

It served an opportunity to integrate practical experience with the theoretical concept & to
understand certain aspects of the various departments in the organization. The theory was the base & this
summer project helped me to understand the reality.

It generated sense of knowledge to understand customer behavior with various attributes at different
situational buying process with result of customer satisfaction according to the promotional offers.

Training served me to understand that service department is a nerve centre of all business activities.

Aanalyze and Interpret Findings

 A Pantaloon’s Big Bazaar, there is a uniform dress code for managers and separate for employees.
 The organization motivates the employees through promotions, transfer, contests, etc.
 There is a separate team for training and development which provides the training for employees.
The main ideas behind this team this to develop knowledge, skills, and attitude required by an
individual to perform adequately a given task.
 There is another team which takes the decision about the salary and wages depending on the
qualification and experience of the individual. This team also handles employee welfare program.
  The HR Dept. which takes the decision about the appraisals of the employees. It also takes care
about the employees’ difficulties and malpractices.
 The management conducts many more events and provides attractive promotional activities to attract
the customers to the store.
 I had an interaction with the company employees to learn more about the company.
 Through interaction with the customers I came to know about the behavior, taste and preferences
towards the offer provided by the Big Bazaar.
 Interaction with the customer has helped me a lot to know about their attitude towards the purchase
decision.

SWOTAnalysisOfBigBazaar

Strengths
 High brand-Equity in evolving retail markets.
 State of art infrastructure of the Big Bazaar outlets.
 Point of purchase promotions to increase the purchase.
 Variety of stuff under single roof increasing customer time & available choices.
 Low price
 Customer service desk.
 Advertisement.

Weakness
 Unable to meet store opening targets.
 Falling of revenue per square feet.
 Less store space.
 Unavailability of branded items.

Opportunities

 Organized retail is just 8% of total pie of Indian market.

 Evolving consumer preference in recent years.
 Huge complexes offer shopping.

Threats
  Highbusinessriskinvolved.
 Lotofcompetitorscominguptotapthemarketpaternal.
  Marginofbusinessreducingallthetime.

COMPANY PROFILE
1. INDUSTRY PROFILE

Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The
inception of the retail industry dates back to times where retail stores were found in the village fairs,
Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail
sector took place with establishment of the retail stores in the locality for convenience. With the
government intervention the retail industry in India took a new shape. Outlets for Public Distribution
System, Co-operation stores and Khadi stores were set up. These retail stores demanded low
investments for its establishment.

India has become synonymous with retail boom. After seeing the monopoly of Indian retailers, the
market is all set to welcome retailers from Gulf countries who are making their way to invest in the
country.

Retail Space:

Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge
demand for real estate. Their preferred means of expansion is to increase the number of outlets in a
city, and also expand to other regions, revealed the Jones Lang LaSalle third annual Retailer
Sentiment Survey-Asia.

Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian
retail is expanding at a rapid pace. The country may have 410 new shopping centers by 2012. Mall
space, from a meager one million square feet in 2002, is expected to touch million square feet by end
of 40 square feet by end of 2007 and an estimated 60 million square feet by end of 2008.

Food retail:
 Food dominates the shopping basket in India. The US $6.1 billion Indian foods industry, which
forms 44 percent of the entire FMCG sales, is growing at 9 percent and has set the growth agenda for
modern trade formats. The prospect for growth of the branded segment is huge, as nearly 60 percent
of average Indian grocery basket still comprises non-branded items. Of the 12 million retail outlets
(which is the largest in the world), over a 5 million sell food related products. Some of large players
in this’ market are Kishore Biyani’s Food Bazaar, Mukesh Ambani’s Reliance Fresh, Godrej
Agrovet, Aditya Birla Group’s More and the TATA Group (which acquired 70 percent stake in
Innovative foods from the Amalgam Group) among others.

The Mobile Revolution:

The retail market for mobile phones-handset, accessories and airtime- is already an over US $17.33
billion market growing at the year ended (and 600 million by 2011), Many players have been
chalking out aggressive plans:

 Spice Group plans to invest US $123.8 million in the next 2 years in its telecom retail venture.
 Hotspot Retail Essar Group plans to invest US $278.56-334.24 million over the next three years in its
telecom retail venture.
 Hypermarket Chains like Subhiksha have started exclusive stores for mobile retail- Subhiksha
Mobile and Big Bazaar with Mobile Bazaar.

Luxury Brands:

With consumers for luxury goods more in numbers than adult population of several countries, many
luxury brands have been attracted to set-up shops in India to tap the growing market. Many
companies such as Bang & Olufsen, Escanda, Brioni, Chanel, Louis Vuitton, Versace, Fendi,
Valentino, and Swarovski among others have already opened shops in the country. According to the
Indian Luxury Trends 2006, prepared by KSA Technopak, consumer base in this segment is
expected to treble by 2010.

Kids Retail:

 When it comes to Indian children, retailers are busy bonding- and branding.
 Monalisa, the Versace of kids, is coming to Indian.
 Global lifestyle brand Nautia is bringing Nautica Kids.
 International brand Zapp tied up with Raymond to foray into kids’ apparel.
  Disney launched exclusive chains which stock character-based stationery.
 Pantaloon’s joint venture with Gini & Jony wills set-up a retail chain to market kids’
apparels.
 Swiss kids wear brand Milou is collaborating with Tripura-based Sreeja Hosieries.
 Turner International India Pvt Ltd, with Launch Cartoon Network Townsville and Planet.
 POGO- two theme parks designed around its channels- In the National Capital Region.

The Indian retailing sector is at an inflection point where the growth in the consumption by Indian’s
is going to adopt a higher growth trajectory. The Indian population is witnessing a significant change
in its demographics. A large working population with median age 24years, nuclear families in urban
areas, along with increasing working population and emerging opportunities in the service sector are
going to be the key growth drivers of the organized retail sector.

KEY PLAYERS IN THE INDIAN RETAIL SECTOR:

The untapped scope of retailing has attracted superstars like WAL-MART into India, leaving behind
the kiranas that served us for years. Such companies are basically IT based. The other important
participants in the Indian retail sector are BATA , BIG BAZAAR , CAFÉ COFFE DAY ,
KHADIM’S , CROSSWORD , MORE , STAR BAZAAR , RELIANCE FRESH , SPENCER ,
GOPALAN MALL to name a few.

RETAILING IN INDIA: A FORECAST

Future of organized retail in India looks bright. According to recent research, it is projected to grow
at a rate of about 37% in 2007 and at a rate of 42% in 2010. It will capture a share of 10% of the total
retailing by the end of 2010.

However to compete in this sector one needs to have up -to-date market information for planning and
decision making. The second most important requirement is to manage costs widely in order to least
normal profits in face of stiff competition.

RETAIL INDUSTRY AND ECONOMY

 Retail business is the largest private industry.

 Retail is ahead of finance and engineering and contributes over 8% of GDP in the western countries.
  Over 50 of the Fortune 500 and about 25 of the Asian top 200 complaints are retailers.
 Today in some developed countries, retail business has shares as large as 40% of the market.
 The significant of the retail business has increased with the fast growth in the service sector.

RETAIL INDUSTRY IN INDIA:

 The organized retail sector is expected to grow at 6% by 2010 and touch a retail business of $17b as
against its current growth level of 3% which at present is estimated to be $6 b
 The study has revealed that the retail sector will grow at GDP 7% by 2010 and enlarge its market
share to $280b from its present estimated level of $200b
 India to have over 300 shopping malls by 2010.

History of Retailing

Retail concept is old in India. World’s first departmental store started in Rome. Today’s
kiranas stores are based on Manuscript & Kautilya’s arthshastra.

Haats, Melas, Mandis & door to door salesmen are traditional Indian retail.

Retailing a nd wholesaling cons is t of many organizations designed to bring goods and

services from the point of production to the point of use. Retailing includes all the activities
involved in selling goods or services directly to final consumers for their personal, non business
use. Retailers can be classified bin terms of store retailers, non-store retailing, and retail
organizations. Store retailers include many types, such as specialty stores, department stores,
supermarkets, convenience stores, superstores, combination stores, hypermarkets, discount stores,
warehouse stores, and catalog showrooms. These store forms have had different longevities and
are at different stages of the retail life cycle. Depending on the wheel-of-retailing, some will go
out of existence because they cannot compete on a quality, service, or price basis.

Non-store retailing is growing more rapidly than store retailing. It includes direct selling (Door-to-
door, party selling), direct marketing, automatic vending, and buying services. Much of retailing is
in the hands of large retail organizations such as corporate chains, voluntary chain and
retailer cooperatives, consumer cooperatives, franchise organizations, and merchandising
conglomerates. More retail chains are now sponsoring diversified retailing lines and forms
instead of sticking to one form such as the department store.

Retailers, like manufacturers, must prepare marketing plans that include decisions on target
markets, product assortment and services, store atmosphere, pricing, promotion, And place.
Retailers are showing strong signs of improving their professional management and their
productivity, in the face of such trends as shortening retail life cycles, new retail forms,
increasing intertype competition, and polarity of retailing, new retail technologies, and many
others.

Wholesaling includes all the activities involved in selling goods or services to those who are
buying for the purpose of resale or for business use. Wholesalers help manufacturers deliver their
products efficiently to the many retailers and industrial users across the nation. Wholesalers
perform many functions, including selling and promoting, buying and assortment-building, bulk-
breaking, warehousing, transporting, financing, risk bearing, supplying market
information, and providing management services and counseling. Wholesalers fall into four
groups. Merchant wholesalers take possession of the goods and include full-service
wholesalers (wholesale merchants, industrial distributors) and limited-service wholesalers
(cash-and- carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers'
cooperatives, and mail-order wholesalers). Agents and brokers do not take possession of the
goods but are paid a commission for facilitating buying and selling. Manufacturers' and retailers'
branches and offices are wholesaling operations conducted by non-wholesalers to bypass
the wholesalers. Miscellaneous wholesalers include agricultural assemblers, petroleum bulk plants
and terminals, and auction companies.

Wholesalers, too, must make decisions on their target market, product assortment and
services, pricing, promotion, and place. Wholesalers who fail to carry adequate
assortments and inventory and provide satisfactory service are likely to be bypassed by
manufacturers. Progressive wholesalers, on the other hand are adapting marketing concepts and
streamlining their costs of doing business.
Challenges

 Largely urban phenomenon, pace of growth is still slow.

 Not being recognized as an industry in India so availability of finance is low to new market
players.
 High cost of real estate.
 High stamp duties.
 Lack of infrastructure.
 Multiple & complex taxation system.
 Protest against retail sector

COMPANY PROFILE
Incorporated in October 1987, Pantaloons ranks amongst the top five retailers in India.

Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 as Man's Wear Private
Limited under the stewardship of Mr. Kishore Biyani. The Company was converted into a public limited
company on September 20, 1991 and on September 25, 1992 the name was changed to Pantaloon Fashions
(India) Limited and the same time it went public and today it has approximately 14,000 shareholders. It later
changed its name to Pantaloon Retail (India) Limited on 7th July 1999.

From a humble beginning in 1987, Pantaloon as today evolved as a leading manufacturer-retailer in the
country with 12 Pantaloon stores and 6 hypermarkets operational across the country. It has been a
remarkable journey for PRIL as its evolved from a manufacturing to a completely integrated player
controlling the entire value chain.

CORPORATE MISSION

"We share the vision and belief that by improving our performance through innovative spirit and
dedication, we shall serve our customers and stakeholders satisfactorily."

PRIL believes that unconventional and innovative thinking will be the key ingredients to attain leadership in
the emerging retail sector where the rules of the game are still evolving. Whereas serving the customers
satisfactorily is the core focus, the company also believes in adequately rewarding its shareholders though
concerted efforts on reducing cost and improving profitability. To implement the corporate mission, PRIL
has penned a well thought of corporate strategy and policy which will ensure rapid growth in the coming

years. This strategy can be best described in the following words

'Rewrite Rules Retain Values'.

 Seamlessly integrate businesses

By seamlessly integrating business and disintermediation PRIL has a com] advantage over other
retailers in the company. Managing the value chaii retailing to manufacturing of apparels, which helps it to
deliver value to the cu; contain costs and reduce time-to-market significantly. By capturing the value ai each
level that company has also been able to capture maximum value shareholders

Blending Strategies

To targeting higher share in customer shopping basket the Company has a blending strategies. By entering
into multiple formats - departmental stop hypermarkets - PRIL has effectively blended the multiple
strategies and there has been successful in addressing a high share of the customer's basket. Increase share
has been primarily on account of entering new product categories.

'Family focus' rather than 'individual focus'

PRIL strategy is to target family as its customer rather than individual. With audience having social ethics
and culture deeply rooted in them addressing the pulls more customers into the store. Moreover, it ensures
repeat purchase strategy of the company is reflected in all its communications and product offerings.

Paradigm shift in "rapid roll-out'

The company has aggressive grow plan to achieve scale of economy ai leadership position in this evolving
industry. PRIL's ability to evolve from format into large format retail stores is well proven. With aggressive
growth p. company has identify many locations across the company to roll out stores future. The company
plans to increase the retail space under control

from 2.0C FY0102 to more than 1 million square feet over the next 3 years to emerge 'Godzilla' of the
Indian retail industry.

VALUES
Though unconventional in redefining the ways of doing business, PRIL ha sacrificed on its core values. It
believes in retain its core values while redefining business rules.

Retain Values

Will the company has ambitious growth plan, it

want to retain its values company believes in the following value and these will be the foundation or any
strategy of growth opportunities will be capitalised.

Indian-Ness

The core value of company is INDIAN-NESS. We believe in ourselves. The company is developing Indian
model of retailing being India is unique country and the customers have unique culture and value systems
that's why company's is the family as customer rather then Individual, offers products of Indian taste,
combination of own category and shop-in-shop category to offer to customer and having mi: retailer
partnering with small time shop keeper.

Dedication

The company is dedicated to customer satisfaction that why it has no question asked exchange policy,
offering product which customer need or demand, follows pyramid structure of organisation where Board of
Directors is at bottom and ci service executive is on the top

Leadership

The company wants to be leader and not a follower. The company ha initiatives and taken leadership
position in retailing by launching multiple for retailing and targeting all segments of society.

Self Development
The company is on the continuous process of self-development by sincere ai work towards understanding
customers, markets and products. The compa moved over times from apparel manufacturing to distribution
to franchisee reta departmental format retailing to hypermarket format of retailing. The compar the path of
continuous learning and implement learning's.

Respect

The company has respect for every individual whomsoever it may be that's why even employees been
considered as internal customer, Suppliers/Vendors are being as partners in progress and company believes
in relationships to delivery customers rather business transactions/deals.

Introspection

Introspection is the key corporate value. The company has passed through strategic points of inflection in
the short life spun so far and came out well a times. The company is a living organisation and always looks
to itself first the: The introspection has helped the company to move over times, from smaller ft big &
multiple formats of retailing to target all sections of society.

COMPANY VISION

Pantaloon has been a pioneer in introducing the concept of mega retail stores i called 'Pantaloons' for the
entire family. In an extremely price-sensitive mar] India, the Pantaloons chain of stores has been successful
in maintain! Equilibrium between quality and price.

Products that offer real value for money

Through its chain of Pantaloon stores, the Company has brought to the Indian an ambiance conductive for
shopping, and offers customer tremendous convenience to shop. In addition, the superstore also offers a
varied range of brands encompass every aspect of modern dressing in India.

Caters to the entire household

To complete the idea of a family store, besides garments, Pantaloons also household items, home
furnishings, books, infant necessities, toys, music, accessories, etc.
Customer assistance par excellence

With Pantaloons, the company believes in providing assistance par excellence customers, despite the stores
being self-service stores. The company aims to value to the customers through various unique avenues.

Providing service of customized suits within 48 hours

One of the services being tested presently by Pantaloons is unique custo mized tailoring for trousers, blazers
and suits, delivered to the customer within 48 hour.

No question asked exchange policy

Another highlight of the Pantaloons service is "No question asked" exchange which allows customers to
exchange products within 30 days of buying them, v giving any reason.

Building long term relationships

To further enhance and build long-term-relationships with its customers, Pant offers membership of the
"Privilege Club" to its select customers.

As Pantaloons moves into the era of Multi-brand and Multi-product retailing it i for its privilege program to
mature. In our constant effort to offer our customized best service, we are migrating to a new privilege card-
the GREEN CARD.

Some of the major milestone achieved by the company in its life span of 14 years is enumerated below:

OWNERSHIP PATTERN
Pantaloon Retail (India) Limited (the “Company” or the “Issuer”) is issuing up to 1,58,22,200 equity shares
of face value of Rs. 2 each (the “Equity Shares”) at a price of Rs.316 per Equity Share, including a premium
of Rs.314 per Equity Share, aggregating Rs. 499.98 Crores.

BOARD OF DIRECTORS
Mr. Kishore Biyani, Managing Director

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

Mr. Gopikishan Biyani, Whole time Director

Mr. Rakesh Biyani, Whole time Director

 Mr. Vijay Biyani, Whole time Director

 Mr. Vijay Kumar Chopra, Independent Director

 Mr. Shailesh Haribhakti, Independent Director

 Mr. S Doreswamy, Independent Director

 Dr. D O Koshy, Independent Director

 Ms. Bala Deshpande, Independent Director

Mr. Anil Harish, Independent Director

Major Milestones
1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser,
India’s first formal trouser brand.
1991 Launch of BARE, the Indian jeans brand.
1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments through
multi-brand retail outlets across the nation.
1995 John Miller – formal shirt brand launched.
1997 Pantaloons – India’s family store launched in Kolkata.
2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain
launched.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first seamless mall
is launched in Bangalore.
2005 Fashion Station - the popular fashion chain is launched
all – ‘a little larger’ - exclusive stores for plus-size individuals is launched

2006 Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion
in real estate, private equity and retail infrastructure funds. Plans forays into retailing of
consumer finance products.

Stationery retailer, Staples.

 Product profile

3. Helmets
4. Saints & Perfumes
Level 1 5. Home Decor
1. Food Bazaar
6. Auto accessories
2. Fruits & Vegetables
3. Bakery Items
C. Toys and sports
4. Stainless Steel Utensils Dept
5. Plastics 1. Soft Toys
6. Crockery 2. Hard Toys
7. Mobiles
8. Cosmetics D. Home Line
9. Herbal 1. Bed Sheets, Pillows, Bed
10. Confectionery Spreads
11. Non-Food Dept 2. Towels, Yellow dust
3. Carpets, Cushion Covers
Level 2 4. Chair Bags

a. Furniture Dept E. Footwear Bazaar

b. Men’s Formals & Casuals
Wears
c. Men’s Accessories
d. Luggage
e. Electronic Products
f. Home Appliances
F. Ladies Accessories
G. Clothes Dept
1. Ladies saris
2. Girls Dress Materials
3. Kids Wear

Level 3
A. Depot.
1. General Books
2. Children Stationary
3. Office Stationary
4. Games VCD's & DVD's

B. NBD(New Business
Development)
1. Gift items
2. Car & Motor Cycle
Covers
 AREAS OF OPERATION

As PANTALOON GROUP is large retail industries, it as branches all over

the country. This PANTALOON GROUP has lots of its retail stores viz. BIG BAZAAR. The
branches are operated in all around the India.

The National-Wide Operation

1. AGRA, AHMEDABAD, ALLAHABAD, ALWAR, AMBALA, ANAND,

AURANGABAD, BARODA, BHARUCH, BHUBHANESHWAR,
BURDWAN, CHENNAI, COIMBATORE, CUTTACK, DARJEELING,
DHANBAD, DYRGAPUR, GHAZIABAD, GURGAON, GHUWATI,
GWALIOR, HALDIA, HOWRAH, HYDERABAD, INDORE, JAIPUR,
KANPUR, KHARAGPUR, KOLHAPUR, KOLKATA, LUCKNOW,
LUDHIANA, MEERUT, MUMBAI, NAGPUR, NASIK, NEW DELHI,
NOIDA, PALAKKAD, PANIPAT, PUNE, RAIPUR, RAJKOT, RANCHI,
SANGLI, SLILIGURI, SURAT, THANE, THRISSUR, TINSUKLA,
TRIVENDRUM, VIJAYAWADA, VIZAG AND ZEERAKHPUR.
 The Region-Wide Operation

BANGALORE, BELGAUM, HUBLI, MANGALORE, MYSORE AND UDUPI.

INFRASTRUCTURAL FACILITIES

The KSRTC-MYSORE ROAD Big Bazaar has an excellent infrastructure facility. It spreads
over three floors. For each floor there is a ramp walk facility. This store contains one good
hygienic wash room and also they provide the pure drinking water. In ground floor there is a
billing counter but during special events there will be a billing counter in all the three floors.
KSRTC-MYSORE ROAD Big Bazaar have a two wheeler parking in front of the store and
four wheeler parking in the underground of the store. Here trolleys and carriage buckets are
provided to customers to carry their shopped materials. It has 5 CCTV cameras in all the
three floors of the store. The management also provides the first aid kit in all the floors. If the
store catches the fire then there is a censor signal which gives the signal to the customers
through ringing the bell to walk out from the store.

ORGANIZATION STRUCTURE

Following is organizational hierarchy in Big Bazaar: ---

Store Manager

Asst. store manager

1. Store manager

Dept.mgr Mkt. mgr HR Mgr Administration Info

Asst. Dept Visual Security Sales Mgr

mgr merchandising
 This is the highest position in the store. He is the father and head of the family.
He is the decision maker for the store. The store manager is the responsible for both
the top line responsibility is sales and the bottom line responsibility is profit.

Role of Store Manager involves—

 Ensuring smooth operations of the store.

 Making plans to ensure highest profit for the store.
 Proper execution of plans.
 Deciding on offer/deals for clearance of products.
 Conducting meeting for proper communication flow.
2. Assistant store manager

There are three ASM’s in the store. Each ASM looks after 1 to 2 department
of the store. The main function of the ASM is to assist the SM in his targets and help
achieve him the same.

3. Department manager

This designation is present for both functional departments as well as the store
department. A definite sales target is set for each department and it is responsibility of
each DM to achieve the same. The DM’s of the functional department are
responsibility of the smooth operation of their respective departments. There are 5
DM’s in the store.

4. Assistant department manager

As the name suggests, the main role of the ADM’s is to assist the DM’s in
their work. There are 8 ADM’s in the store.

5. Team Leader
 Sometimes department is divided into sections and there are different teams
appointed to look after these sections. Team leaders are the heads of such teams.
There are total 105 TM’s and TL’s in the store.

6. Team Members

These comprise of almost 80% of total staff. They are the actual customer
facing members and their key role is to provide best service to the customer. Pleasing
personality, good communication skills and overall product knowledge are the main
requirement for this post.

COMPETITORS INFORMATION

o Shopper’s Stop
o Westside
o Lifestyle
o RPG Retail
o Crossword
o Piramals
o Gopalan Mal
o Tata Star Bazaar
o More
o Reliance Fresh

INFRASTRUCTURAL FACILITIES

Big bazaar has state-of-the-art infrastructure facilities across the country which enhances the
shopping experience of the customers and enriches the working experience of employee. Big
bazaar is a multistoried outlet which has a spacious parking facility, baggage counters, ramp,
water dispensary, rest rooms, trail rooms etc and for employee they have canteen, fun zone
where number of various games and events are conducted for employees, changing room etc.

This store is of 3 flours and divided into 3 levels based on the nature of products. There are
21 departments in this store and 220 Human Resource employed. As this store is big enough
with 3 levels and 21 departments has long product range and product depth. Ones a customer
get inside the store he will find all kinds of products available that may be Food item,
Cosmetic, Electronic, Garments, Furniture etc. Because of these features it has a very good
reputation in that area and customers who are residing far away and in other areas they also
visit the store.

AWARDS AND RECOGNITION

2009

o CNBC Awaaz Consumer Awards 2009

o Images Fashion Forum 2009
o Coca-Cola Golden Spoon Awards 2009

2008

o Indian Retail Forum Awards 2008

o The INDIASTAR Award 2008
o Retail Asia Pacific 500 Top Awards 2008
o Coca-Cola Golden Spoon Awards 2008
o The Reid & Taylor Awards For Retail Excellence 2008

2007

o Images Retail Awards

o National Retail Federation Awards
o World Retail Congress Awards
o Hewitt Best Employers 2007
PC World Indian Website Awards

Major operation’s of Big Bazar

Logistics
  GRN (Good Receipt No.)
 Vendor Scheduling
 Stock Keeping
 Space management
 Stock receiving
 STO/RSTO
 PO (Purchase order no.)

CSD (customer Service Department)

 Exchange counter
 Handling customer quarries and issues
 Announcement
 Gift Wrapping

Operation

 Department Hygiene
 Cleanliness
 Parking
 Cash till management
 Profile Protection Management
 SOP
 Trolly Management
 Damage and Shrinkage control

Merchandise

 MPM (merchandise Presentation manual)

 FPP (First price point)
 Core
 Core Fashion
 Deals
 Signage
 Pattern wise size Display

About the Big bazaar

 Total Number of Outlets – 250
 Number of Cities covered – 72
 Retail space under use 3 million square feet
 Footfalls - 12 crore per year
 Conversion rate – 50%
 Average bill per customer – 700Rs
 Employee Strength – 12000
 Investment planned – Rs500crore
  Targeted sales turnover – Rs 10000 by 2010
 Retail space available – 10million sq ft by 2010
 Employee strength – 100000 by 2010

ANALYSIS AND INTERPRETATION OF DATA

AGE

AGE RESPONDENTS PERCENTAGE

15-25 16 16%
25-35 49 49%
35-45 22 22%
45-55 10 10%
55-65 03 03%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: From the above table it indicates that, 16% are belonging to the age slab of 15-
25, 49% are belongs to 25-35, 22% belongs to 35-45, 10% of respondents are belongs to 45-
55 age slab and remaining 03% of respondents are belonging to the age slab of 55-65 who
visit to the BIG BAZAAR.

CHART 1

AGE

AGE
10% 3% 16%

15-25
22% 25-35
35-45
45-55
55-65

49%

INTERPRETATION: From the above pie-chart it indicates that the major of respondents
i.e. 49% belong to the age group of 25-35.
 TABLE 2

SEX

SEX RESPONDENTS PERCENTAGE

MALE 66 66%
FEMALE 34 34%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: From the above table it indicates that, 66 are Male and 34 are Female.

CHART 2

SEX

SEX

34%
MALE
FEMALE

66%

INTERPRETATION: The above pie-chart shows that majority of the respondents were
male with 66%.

TABLE 3

MARITAL STATUS

MARITAL STATUS RESPONDENTS PERCENTAGE

MARRIED 68 68%
UNMARRIED 32 32%
 TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: Among 100 respondents surveyed, 68% of customers who visit to the Big
Bazaar are Married and remaining 32% customers are Unmarried.

CHART 3

MARITAL STATUS

MARITIAL STATUS

70

60

50 Column1
68
40

30
32
20

10

0
MARRIED UNMARRIED

INTERPRETATION: The above bar graph shows that 68% of customer who visit to the
Big Bazaar are Married followed by 32% of unmarried customers.

TABLE 4

OCCUPATION

OCCUPATION RESPONDENTS PERCENTAGE

BUSINESSMAN 20 20%
GOVT. SERVICE 20 20%
PRIVATE EMPLOYEE 40 40%
HOUSEWIFE 10 10%
STUDENTS 10 10%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: From the above table it indicates that, 40% are Private Employee, 20% are
Businessman and Govt. Employee, 10% are Housewife and Students who visit to Big Bazaar.
 CHART 4

OCCUPATION

Occupation
20%
10% 10%

businessman
Govt. Service
Private Employee
Housewife
Students
20%

40%

INTERPRETATION: The above pie-chart shows that most of the respondents are Private-
Employee followed by Business-Man & Govt. Service.

TABLE 5

INCOME

INCOME RESPONDENTS PERCENTAGE

BELOW 10000 27 27%
10000-20000 42 42%
20000-30000 16 16%
30000-40000 07 07%
40000 & ABOVE 08 08%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: Among 100 respondents surveyed, 42% are belongs to income slab of 10000-
20000, 27% are from below 10000, 16% are from 20000-30000, 8% are from 40000 & above
and 7% are from 30000-40000.
 CHART 5

INCOME

7% 8%

16%
27%
BELOW 10000
10000-20000
20000-30000
30000-40000
40000 & ABOVE

42%

INTERPRETATION: Majority of the respondents fall under the income group of below
10000-20000 this shows that majority of the customers in big bazaar belong to middle
income group level.

TABLE 6

PREFERENCE OF CUSTOMERS TO SHOP

RETAIL STORE NUMBER OF PERCENTAGE

RESPONDENTS
Big Bazaar 58 58%
Star Bazaar 21 21%
Smart 5 5%
Spencer 5 5%
More 10 10%
Total 1 1%
Total 100 100%
SOURCE: Primary data survey.
ANALYSIS: Above table shows that 58 percent of the respondents prefer Big Bazaar to
shop, 21 percent of the respondents prefer Star Bazaar, 5 percent of the respondents prefer
smart to shop, 5 percent of the respondents prefer Spencer’s to shop, 10 percent of
respondents prefer more to shop and 1 percent of respondents prefer Total to shop.

CHART 6

PREFERENCE OF CUSTOMERS TO SHOP

1
10
5
5

58
21

Big Bazaar Star Bazaar Smart Spencer More Total

INTERPRETATION: From the above pie-chart it shows that 58% of the respondents
preferred to shop at big bazaar from this we can interpret that big bazaar is trusted by the
customer and has a good reputation in the market

TABLE 7

REASONS TO VISIT BIG BAZAAR

REASONS RESPONDENTS PERCENTAGE

PROMOTIONAL OFFERS 40 40%
EVERYTHING UNDER 1 34 34%
ROOF
MORE NO. OF BRANDS 11 11%
QUALITY 15 15%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: From the above table it indicates that, 40% of customers visit to Big Bazaar for
the reason of promotional offers, 34% due to Everything under 1 roof, 15% due to Quality
and 11% due to More no. of brands.

CHART 7

REASONS TO VISIT BIG BAZAAR

11%
15%

PROMOTIONAL OFFERS
EVERYTHING UNDER 1 ROOF
34% MORE NO. OF BRANDS
QUALITY
40%

INTERPRETATION: From the above pie-chart it shows that majority of the respondents
approach big bazaar due to its various promotional offers this shows that promotional offers
i.e. 40% have a good impact on customer purchase decision.

TABLE 8

AWARENESS ABOUT THE PROMOTIONAL OFFERS

AWARENESS RESPONDENTS PERCENTAGE

NEWSPAPERS 20 20%
HOARDINGS 6 6%
WORD OF MOUTH 15 15%
REFERENCE 7 7%
TELEVISION 17 17%
ADVERTISEMENTS 18 18%
NOT AWARE 17 17%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: From the above table it indicates that, 20% are aware about promotional offers
through newspaper, 18% through advertisement, 17% through television, 15% through word-
of-mouth, 7% through reference and 6% through hoardings. The remaining 17% customers
are not aware about the promotional offers that Big Bazaar provide.

CHART 8

AWARENESS ABOUT THE PROMOTIONAL OFFERS

25

20

15

10

INTERFERENCE: Majority of the customers got aware about the promotional offers
through newspaper and advertisements this shows that promotional offers in Big Bazaar have
a good positive print media which helps in spreading the message like a wild fire.

TABLE 9

FEELING ABOUT PROMOTIONAL OFFERS

OFFERS REPONDENTS PERCENTAGE

FREE GIFTS 7 7%
BUY 1 GET 1 FREE 46 46%
EXTRA GRAMS 16 16%
DISCOUNTS 31 31%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: From the above table it indicates that, 46% of customers feel Buy1 Get! Free as
a better promotional offer, 31% of customers prefer Discounts as better offer, 16% of
customers prefer Extra Grams and remaining 7% of customers prefer Free Gifts as a better
promotional offer.

CHART 9

FEELING ABOUT PROMOTIONAL OFFERS

OFFERS

DISCOUNTS

EXTRA GRAMS
OFFERS

BUY 1 GET 1 FREE

FREE GIFTS

0 5 10 15 20 25 30 35 40 45 50

INTERPRETATION: Majority of the respondents feel that buy 1 get 1 free and discount
offers are giving the customer a good deal compared to other offers given by Big Bazaar.

TABLE 10

ANNOUNCEMENT HEPLING TO TAKE A BUYING DECISION

ANNOUNCEMENT HELPING RESPONDENTS PERCENTAGE

FOR BUYING DECISION
YES 76 76%
NO 24 24%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: Among 100 respondents surveyed, 76% are accepted that the announcement
which is made by employees helps them to take a buying decision and rest 24% doesn’t
accept this method of announcement.
 CHART 10

ANNOUNCEMENT HELPING TO TAKE A BUING DECISION

ANNOUNCEMENT

24%

YES
NO

76%

INTERPRETATION: Though majority (76) percent of the respondents were able to

understand the announcement offers made in the store and make a buying decision, other 24
percent of the respondents told that there was lot of disturbance and voice was not audible
properly and sometimes the customer was wrongly interpreting the message.

TABLE 11

CUSTOMER OPINION ABOUT OFFERS

OPINION CRITERIA RESPONDENTS PERCENTAGE

LOT OF SAVINGS AND 55 55
FRESH OFFERS
NO SAVINGS OFFERS 16 16
SAME OFFERS FROM A 28 28
LONG TIME
OTHERS 01 01
TOTAL 100 100
SOURCE: Primary data survey.

ANALYSIS: Above table shows that 55% of respondents are of the opinion that offers give
them lot of savings and are fresh, 16% of the respondents are of the opinion that offers do not
give them any savings, 28% of the respondents are of the opinion that Big Bazaar is giving
same offers from a long time and remaining 1% having other opinion.

CHART 11

CUSTOMER OPINION ABOUT OFFERS

OPINION CRITERIA

60
50
40
55
30
20 28
16 OPINION CRITERIA
10
1
0

INTERPRETATION: Majority of the respondents are of the opinion that they will get lots
of savings from their purchase in Big Bazaar and they find fresh offers whenever they visit to
Big Bazaar.

TABLE 12

RATING OF SALESPERSON BEHAVIOR IN STORE

SALESPERSON BEHAVIOR RESPONDENTS PERCENTAGE

VERY COURTEOUS 20 20%
COURTEOUS 57 57%
SOMEWHAT COURTEOUS 20 20%
NOT COURTEOUS 03 03%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: From the above table it indicates that, the customers feel that 20% of
salespersons behavior is very courteous, 57% of salespersons behavior is courteous, 20% of
salespersons behavior is somewhat courteous and remaining 03% are not courteous.

CHART 12

RATING OF SALESPERSON BEHAVIOR IN STORE

SALESPERSON BEHAVIOR

3%
20%
20%
VERY COURTEOUS
COURTEOUS
SOMEWHAT COURTEOUS
NOT COUTEOUS

57%

INTERPRETATION: From the above pie-chart it shows that majority of the respondent’s rate
the sales person behavior in the store as courteous and we can interpret that sales person are
trained about the way to behave with the customer and make the sale.

TABLE 13

FACTORS INFLUENCING TO VISIT

INFLUENCE RESPONDENTS PERCENTAGE

OFFERS 42 42%
FACILITIES 19 19%
AVAILABILITY 26 26%
OTHERS 13 13%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: From the above table it indicates that,42% of customers get influence to visit
Big Bazaar is due to the store’s offers, 26% is due to availability, 19% is due to its facilities
and remaining 13% is from other reasons get influence to visit to Big Bazaar.

CHART 13

FACTORS INFLUENCING TO VISIT

INFLUENCE
45

40

35

30

25 INFLUENCE

20 42

15
26
10 19
13
5

0
OFFERS FACILITIES AVAILABILITY OTHERS

INTERPRETATION: The above bar graph shows that the majority of promotional offers
influence customer to visit to BIG BAZAAR is all about its offers and followed by store’s
availability.

TABLE 14

DECISION MAKER

DECISION MAKER RESPONDENTS PERCENTAGE

YOURSELF 35 35%
SPOUSE 12 12%
CHILDREN 6 6%
FRIENDS 15 15%
FAMILY AS A WHOLE 32 32%
 TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: From the above table it indicates that, 35% are themselves who decide for
making a decision to purchase during the promotional offers, 12% are dependent on their
spouse for decision making for purchase, 6% are children who make the purchase decision,
15% are customer’s friends who make a decision for purchase and remaining 32% are family
as a whole decision maker for purchase during the promotional offers.

CHART 14

DECISION MAKER

FAMILY AS A WHOLE

FRIENDS

CHILDREN
Column2

SPOUSE

YOURSELF

0 5 10 15 20 25 30 35 40

INTERPRETATION: Majority of the respondents are influenced by themselves during

promotional offers this shows that Big Bazaar is planning promotional offers in such a way
that it is influencing every segment of people in the customer age life cycle.

TABLE 15

PURCHASE

PURCHASE RESPONDENTS PERCENTAGE

GROCERIES 15 15%
APPARELS 47 47%
ELECTRONIC ITEMS 11 11%
CONSUMER DURABLES 16 16%
OTHERS 11 11%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: From the above table it indicates that, 15% of customers purchase groceries
during promotional offer, 47% of customers purchase apparels, 11% of customers purchase
electronic items, 16% customers purchase the consumer durables and the remaining 11%
customers purchase the other products during promotional offers.

CHART 15

PURCHASE
50
45
40
35
30
25
20
15
Column2
10
5
0

INTERPRETATION: Majority of the respondents are buying apparels during promotional

offers this shows that promotional offers in this products are giving the customers a good
deal in purchasing this products.

TABLE 16

FREQUENCY

FREQUENCY RESPONDENTS PERCENTAGE

DAILY 1 1%
WEEKLY 24 24%
MONTHLY 46 46%
DURING SPECIAL EVENTS 29 29%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: From the above table it indicates that, 1% of customers visit daily to the Big
Bazaar, 24% of customers visit weekly, 46% of customers visit monthly and remaining 29%
of customers visit during special events to the Big Bazaar.

CHART 16

FREQUENCY

FREQUENCY
1%

29% 24%

DAILY
WEEKLY
MONTHLY
DURING SPECIAL EVENTS

46%

INTERPRETATION: From the above pie-chart majority of the respondents visit Big
Bazaar monthly and during the time of special events this shows that this both offers have a
high impact on bringing the customer to the store to purchase the products.

TABLE 17

WHETHER CUSTOMERS RECOMMEND THE STORE TO THEIR FRIENDS &

RELATIVES

RECOMMENDATIONS RESPONDENTS PERCENTAGE

YES 87 87%
NO 13 13%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: From the above table it indicates that, 87% of customers recommend the store
to their friends & relatives and the remaining 13% customers doesn’t want to recommend
their friends & relatives to the store.

CHART 17

RECOMMENDATION OF CUSTOMER

90
80
70
60
87
50
40
30
20 13
10
0
YES NO

RECOMMENDATION

INTERPRETATION: Majority of the respondents recommended about the offers in the

store to their friends and relatives, from this we can interpret that respondent is very much
satisfied with the offers in the store and is spreading a positive word of mouth to other people
which will help in increasing other customers visit to the store.

TABLE 18

PURCHASE UNDER UNEXPECTED OFFERS

PURCHASE UNDER RESPONDENTS PERCENTAGE

UNEPECTED OFFERS
YES 70 70%
 NO 30 30%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: From the above table it indicates that, 70% of customers make a purchase
under unexpected offers and remaining 30% of customers doesn’t make a purchase under
unexpected offers.

CHART 18

PURCHASE UNDER UNEXPECTED OFFERS

70

60

50

40 70

30

20 30

10

0
YES NO

INTERPRETATION: Majority of the respondents are willing to make purchases under

unexpected offers from this we can interpret that customer is aware about the unexpected
offers or he is well communicated about the unexpected offers by the store management.

TABLE 19

EXTENSION OF SATISACTION OF PROMOTIONAL OFFERS

FACTORS RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 12 12%
SATISFIED 57 57%
MODERATELY SATISFIED 26 26%
 UNSATISFIED 5 5%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: Among 100 respondents surveyed, 12% of customers are highly satisfied with
Big Bazaar’s promotional offers, 57% are satisfied with promotional offers, 26% are
moderately satisfied with promotional offers and remaining 5% are unsatisfied with the
promotional offers of Big Bazaar.

CHART 19

EXTENSION OF SATISFACTION OF PROMOTIONAL OFFERS

60

50

40

30
Column2

20

10

0
HIGHLY SATISFIED SATISFIED MODERATELY SATIFIED UNSATISFIED

INTERPRETATION: Majority of the respondents are satisfied with the promotional offers
of Big Bazaar, from this we can interpret that promotional activities have a good effect on
customer purchase.

TABLE 20

RATING OF PROMOTIONAL OFFERS

RATING RESPONDENTS PERCENTAGE

EXCELLENT 15 15%
GOOD 54 54%
AVERAGE 26 26%
POOR 5 5%
TOTAL 100 100%
SOURCE: Primary data survey.
ANALYSIS: Among 100 respondents surveyed. 15% of customers has rated the promotional
offers as excellent, 54% has rated as good, 26% has rated as average and remaining 5% of
customers who visited to Big Bazaar has rated the promotional offer as poor.

CHART 20

RATING OF PROMOTIONAL OFFERS

RATING OF PROMOTIONAL OFFERS

15%
5%
26%

EXCELLENT
GOOD
AVERAGE
POOR

54%

INTERPRETATION: Majority (54) percent of the respondents agree that Big Bazaar has
good offers during festival season from this we can interpret that Big Bazaar is planning
festival offers in a successful manner which is bringing customers to the store.

TABLE 21

RETAIL OUTLET AWARENESS

RETAIL OUTLETS RESPONDENTS PERCENTAGE

BIG BAZAAR 47 47%
GOPALAN MALL 27 27%
STAR BAZAAR 08 08%
 MORE 09 09%
GIRIAS 09 09%
TOTAL 100 100%
SOURCE: Primary data survey.

ANALYSIS: From the above table it indicates that, 47% of customers are aware about
promotional offers of Big Bazaar, 27% of customers are aware about promotional offers of
Gopalan Mall, 08% of customers are aware about promotional offers of Star Bazaar and 09%
of customers are aware about the promotional offers of More & Girias.

CHART 21

RETAIL OUTLET AWARENESS

9%

9% BIG BAZAAR
GOPALAN MALL
8% STAR BAZAAR
47% MORE
GIRIAS

27%

INTERPRETATION: The above pie-chart shows that the majority of customers are aware
about the promotional offers of Big Bazaar. This shows that the management team of Big
Bazaar is successful to reach the promotional offers to the customers & the customers are
satisfied with promotional offers of Big Bazaar.
 SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS

FINDINGS
 In the survey 49% of the respondents are from the age group of 25-35.
 Most i.e. 66% of the respondents are male who visit to the Big Bazaar and the
remaining 34% of the respondents are female.
 Among 100 respondents surveyed, 68% of the respondents are married who visit to
the Big Bazaar.
 Majority of the respondents surveyed, 40% were private employees followed by
businessman and govt. service with 20% each.
 Majority 42% of the respondents lied in between the income range of 10000-20000.
 Among 100 respondents surveyed, 40% of respondents visit to Big Bazaar due to the
reason of its promotional offers.
 Majority 20% of respondents are aware about the promotional offers of Big Bazaar
through newspapers & through advertisements i.e. 18%.
 Among 100 respondents surveyed, the majority of respondents feel Buy1 Get1 as a
better promotional offer to attract the more customers i.e. 46%.
 Majority of the respondents, 76% of customers feel the announcement as a helping
tool to take a purchase decision in Big Bazaar.
 In the survey as per 100 respondents, majority 55% of the respondents feel as lot of
savings and fresh offers about the Big Bazaar’s promotional offers.
 Among 100 respondents surveyed, 57% of customers feel the salespersons behavior in
Big Bazaar is courteous to attend the customers.
 Majority of the respondents say that offers 42% influence them to visit to the Big
Bazaar, followed by its availability 26% which influences them to visit to Big Bazaar.
 Most of the respondents i.e. of 35% say that they are the one who make a decision for
the purchase during the promotional offers.
 Among 100 respondents surveyed, 47% of customers purchase from apparels during
the promotional offers followed by 16% of customers who purchase from consumer
durables.
 The respondents visit and purchase monthly was high in the Bi Bazaar.
 Majority i.e. 87% of the respondents say that they would recommend to their friends
& relatives to visit the Big Bazaar.
 Among 100 respondents surveyed, majority i.e. 70% of customers makes the purchase
under unexpected offers and followed by 30% of customers who doesn’t want to
make purchase under unexpected offers.
 Majority i.e. 57% of respondents are satisfied with promotional offers of Big Bazaar.
 Among 100 respondents surveyed, 54% of respondents are rated the promotional
offers as good and followed by 26% of respondents are rated as average.
 Majority i.e. 47% of respondents are aware about Big Bazaar, followed by 27% of
respondents are aware about Gopalan Mall, 9% of respondents are aware about More
& Girias and 8% of respondents are aware about Star Bazaar.
 SUGGESTIONS

 A large number of customers (40%) visit the Big Bazaar is only due to promotional
offers, but less due to quality and more number of brands. So it should improve in
quality as well as to provide more number of brands in product portfolio.
 Customers are not so much exposed to newspapers and advertisements about the
promotional offers, so they have to advertise its offers more in radio channels,
television and internet.
 A large numbers of customers were not satisfied with the existing apparel brands. It is
better to introduce many more brands & trendy wears into the product portfolio.
 Most of the customers say that they expect price discounts rather than any other
promotional offers.
 The employee should be given training for better customer service. The employee in
Big Bazaar lack in communication so training should be given in terms of
communication. More knowledge on the part of employees to demonstrate the product
is required and also they should be more interactive with customers.
 The customers shopping in electronic department is only 11% in 100 respondents,
thus Big Bazaar should have more varieties and good offers in electronic department
to increase the sales in this department.
  Big Bazaar should have to conduct some contest for the customers.
 Big Bazaar should come-up with food court so that customers can even enjoy food in
Big Bazaar.
 As customers do not prefer groceries & vegetables, so Big Bazaar need to provide
fresh groceries & vegetable and make the purchase happen.
 The quality in terms of product should be improved so as to satisfy and attract the
customers.
 Big Bazaar need to provide sitting arrangements, air condition and need to improve in
proper product layout.

D. CONCLUSION

This study has basically helped to know about the promotional activities of Big
Bazaar and its effect on customer purchase. The survey has been a platform to find out
answers towards the same topic. It has played the role of mediator between the customers and
organization. The organization will obtain vital information regarding its customer’s needs
and wants. The customers have also helped the organization by providing inputs regarding
what steps should be taken by the organization to improve.

Most of the customers are influenced by the offers in Big Bazaar. Big Bazaar have
great offers for there customers that acts as the motivating factor which brings the customers
to Big Bazaar. The customers who visit to Big Bazaar shop more in apparels and consumer
durable department. Most of the customers are satisfied with the Big Bazaar’s promotional
offers. Customers feel that shopping in Big Bazaar is lots of savings and also find the fresh
offers whenever they visit again and again to Big Bazaar. Customers feel that shopping with
Big Bazaar is convenient and saves there valuable time. This is due to the proper facility that
is available in Big Bazaar.

The display of products in big bazaar is very good and the customers feel that it is
very easy to them to find any product in the store. The customers are loyal towards Big
Bazaar, hence they want to visit Big Bazaar again, and around 57% of the customers are
satisfied with offers. Around 87% of customers are wishing to recommend the Big Bazaar to
their friends and relatives. This shows that customers are satisfied with the promotional offers
and also satisfied in shopping with Big Bazaar.
 I believe that Big Bazaar has the potential to satisfy its customers and retain them.
And it has its brand name to reckon with in the market and I offer my best wishes for the
same and hope that my work will be of some use for the company.

The study also contains the suggestions provided by the customers as well as the
observers about the facilities lacking which might hinder the growth of the organization in the
coming future.

The response of the customers were analyzed and calculated. Majority of the
customers preferred price as the main factor in purchase of the products, and they are the one
who makes the decision of purchase and also the act of main influencing is offers for their
buying decision.

BIBLIOGRAPHY

Books referred,

Marketing Management : Philip Kotler

Retailing Management : Swapna Pradhan

(Part of Theoretical Background of the Topic -page

no. 35 & History of Retailing - page no. 2)

Websites referred

www.pantaloon.com : Company Profile - page no. 5-6 & Background

inception – page 9-10.

www.wikipwdia.com : Board of Directors - page no. 13 & Awards of the

Company – page no. 14-16.

www.marketingprofs.com : Part of theoretical background of the topic – page no.

36-40.
www.google.com : Industry Profile of the Retail industry –
page no.3-4

ANALYSIS OF FINANCIAL STATEMENT

Future Group (India) Limited

Financial Results for the Quarter & Niner Months Ended 31st March, 2009

(Rs. in Corers)

Sr. Particulars 3 Months 3 Months 9Months 9 Months Year

No. ended 31st ended ended ended ended
March, 31st 31st 31st 30th June,
2009 March March, March, 2008
2008 2009 2008
1. Net sales/Income from 1642.09 1354.34 4678.98 3997.53 5048.91
operations
2. Expenditure
a. (Increase)/ Decrease in (57.72) (109.74) (316.60) (407.46) (614.41)
stock in trade & work-in-
progress
b. Consumption of raw 8.18 22.19 29.14 52.24 59.96
materials
c. Purchases of trading 1199.57 1040.16 3565.58 2906.74 4066.64
goods
d. Employee cost 69.47 72.47 204.23 206.63 274.07
e. Depreciation 36.86 22.32 101.23 58.00 83.39
f. Other expenditure 249.58 215.12 711.43 590.01 802.13
Total 1505.94 1262.52 4295.02 3406.16 4671.78
3. Profit from operations 136.15 91.82 383.96 261.37 377.13
before other income &
interest (1-2)
4. Other income 1.60 1.65 4.28 3.70 3.76
5. Profit before interest 137.74 93.47 388.24 265.07 380.89
(3+4)
6. Interest 84.73 42.87 227.27 119.81 185.27
7. Profit before tax (5-6) 53.01 50.60 160.97 145.26 195.62
8. Tax Expenses
a. Fringe benefit tax 0.62 0.91 1.89 2.31 3.24
b. Current Tax 6.70 7.78 20.34 23.12 29.16
c. Deferred Tax 11.32 9.81 34.38 26.42 37.28
9. Earlier years income tax - - 0.27 (0.03) (0.03)
10. Net profit for the period 34.27 32.10 104.09 93.44 125.97
(7-8-9)
11. Paid-up equity share 35.04 30.96 35.04 30.96 31.86
capital (Face value of
Rs.2 per share)
12. Reserves excluding 1751.50
Revaluation Reserves as
per balance sheet of
previous accounting year
13. Basic EPS & Diluted EPS :
a. Equity Shares 1.95 1.91 5.93 5.63 7.54
b. Class B Shares (Series 1) 2.05 2.01 6.03 5.73 7.64
14. Public Share Holding:
a. Equity Shares
- No. of shares 85214535 85214535 85214535 85214535 85214535
- %age of share holdings 53.50 55.05 53.50 55.05 53.50
b. Class B Shares (Series 1)
- No. of Shares 8521459 - 8521459 - -
- %age of Share holdings 53.50 - 53.50 - -
15. Promoters & promoter
shareholding
a. Pledged/Encumbered
- No. of Equity shares 27025820 - 27025820 - -
- No. of Class B Shares 2588440 - 2588440 - -
(Series 1)
- %age of equity shares (as 36.48 - 36.48 - -
a % of total equity
shareholding of promoters
& promoter group)
- %age of Class B shares 34.94 - 34.94 - -
(Series 1) (as a % of total
equity shareholding of
Promoters & promoter
group)
- %age of equity shares (as 16.97 - 16.97 - -
a % of total equity capital
of company )
 - %age of Class B shares 16.25 - 16.25 - -
(Series 1) (as a % of total
Class B shares Series 1
share capital of company)
b. Non-Encumbered
- No. of Equity Shares 47051166 - 47051166 - -
- No. of Class B Shares 4819253 - 4819253 - -
(Series 1)
- %age of Equity Shares (as 63.52 - 63.52 - -
a % of total equity
shareholding of Promoters
& promoter group)
- %age of Class B Shares 65.06 - 65.06 - -
(Series 1) (as a % of total
equity shareholding of
Promoters & promoter
group)
- %age of Equity Shares (as 29.53 - 29.53 - -
a % of total equity share
capital of company)
- %age of Class B Shares 30.25 - 30.25 - -
(Series 1) (as a % of total
class B Shares) (Series 1
share capital of company)

The company has achieved an all time high turnover of Rs.4678.98 crore during the 9
months ended 31st March 2009, an increase of Rs.1011.45 crores registering a growth of
21.61% over the previous year. The expenditure was Rs.4295.02 crores recording an increase
of Rs.888.86 crores compared to previous year. The company’s profit before tax stood at
Rs.160.97 crores registering a growth of over the previous year. The profit after tax stood at
Rs.104.09 crores. This is the highest ever earned profit earned by the company which was
possible through steps taken by the Big Bazaar like increasing sales, rate of conversion etc.
 QUESTIONNAIRE

Dear sir/madam

I KRISHNA KUMAR MISHRA currently pursuing an MBA at

INTERNATIONAL INSTITUTE OF BUSINESS STUDIES.I am doing this survey as a
part of my project work with BIG BAZAAR “A STUDY ON PROMOTIONAL
ACTIVITIES AND ITS EFFECT ON CUSTOMER PURCHASE” in partial fulfillment
of requirement as per MBA curriculum prescribed by PTU. I request you to help me in
completing this project by filling in this enclosed questionnaire. I assure you that all the
information provided by you will be kept confidential and used solely for academic purpose.

1. PERSONAL PROFILE

NAME :
AGE : 15-25 () 25-35 ()
35-45 () 45-55 ()
GENDER : Male () Female ()
MARITAL STATUS: Married () Unmarried ()
OCCUPATION : Student () Businessman ( )
 Govt. Employee () Private Employee ()
INCOME : Below 10000 () 10000-20000 ( )
20000-30000 () 30000-40000 ( )
Above 40000 ()

2. Where do you shop most?

Big Bazaar () Star Bazaar () Spencer ()

More () Total () Spar ()

3. What are the reasons for approaching Big Bazaar than other traditional stores?

Promotional offers () everything under1 roof ( )

More number of brands () Quality

()

4. How do you come to know about Big Bazaar?

Friends () Advertisement ()

Display at shop ()

Others Specify _______________________________

5. Are you aware about kinds of promotional offers at Big Bazaar?

Yes () No () Slight Idea ()

--------If yes then source of awareness

Newspaper () Hoardings () Word of mouth ( )

Reference () T.V. () Advertisements ( )

6. Among the following promotional activities which do you feel better?

Free gifts () Buy 1 Get 1 Free ( )

Extra grams () Discounts ()

7. Does announcement help you to take a buying decision?

Yes () No ()

8. What did you think about our offers?

Lot of savings and fresh offers () No savings offers ()

Same offers from a long time () others specify…………………

9. How do you rate the salesperson behavior in store?

Very courteous () Courteous ()

Somewhat courteous () Not courteous ()

10. To what extent would the promotional offers influence your visit to Big Bazaar?

Offers () Facilities () Availability ()

Others specify ……………...

11. Who is the crucial decision maker at time of promotional offers in Big Bazaar?

Yourself () Spouse () Children ()

Friends () Family as a whole ()

12. During promotional offers which department products do you buy more?

Groceries () Apparels () Electronic items( )

Consumer Durables () Others specify ……………………………….

13. How frequently do you visit at Big Bazaar?

Daily () Weekly () Monthly ()

 During special events ()

14. Would you recommend the store to friends and relatives?

Yes () No ()

15. Would you make your purchase under unexpected offers?

Yes () No ()

16. To what extent are you satisfied with the promotional offers at Big Bazaar?

Highly satisfied () Satisfied ()

Moderately satisfied () Unsatisfied ()

17. How do you rate the promotional offer by Big Bazaar during festival season?

Excellent () Good () Average ( )

Poor ()

18. Rank the following based on their promotional offers:

Rank 1-5

1. Big Bazaar
2. Gopalan Mall
3. Star Bazaar
4. More
5. Girias

19. Would you give any suggestion for Big Bazaar?

 …………………………………………………………………………
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Place :__________ Phone No:___________

Date :__________ e-mail id :___________

Signature: ___________

Thanks for your kind co-operation and information.

*****HAVE A JOYFULL SHOPPING WITH BIG BAZAAR*****