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SUMMER TRAINING REPORT

ON
CONSUMER BEHAVIOUR IN RETAIL SECTOR
WITH REFERENCE TO BIG BAZAAR

Submitted to Department of Management Studies


In partial fulfillment of the requirements for the award of degree
of
MASTER OF BUSINESS ADMINISTRATION

AL-FALAH UNIVERSITY, DHAUJ, FARIDABAD (HARYANA)

Submitted by Guided by
MOHAMMAD AQUIB MR. IRFANULLAH KHAN
MBA (III Semester)
Roll No. MBA-15-16

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DECLARATION

I, Mohammad Aquib, Roll No. MBA-15-16, Class MBA (III Semester) of AL-FALAH
UNIVERSITY, Dhauj, Faridabad (Haryana) hereby declare that the Summer Training
Report entitled “Consumer Behaviour in Retail Sector with Reference to Big
Bazaar” is an original work and the same has not been submitted to any other
Institute/University for the award of any other Degree. A seminar presentation of the
Training Report was made on…………………and the suggestions as approved by
faculty were duty incorporated.

Presentation In charge Signature of the Candidate


MR. IRFANULLAH KHAN MOHAMMAD AQUIB

(Faculty)

Countersigned by
Director/Principal of the Institute

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ACKNOWLEDGEMENT

A survey effort is a contributory work of many hearts, hands, and heads and is the same
with me. In last month or so of my research ,I was spell bound by the sincere help
which ;I received from all quarters of people, all quarters of knowledge and all works of
life.

I would like to thanks to MR. IRFANULLAH KHAN, Faculty Guide for his valuable
guidance and support at all time throughout my survey report completed at time.

I would like to thank and express my obligation to all members who gave me regular
support and guidance through the project and making me understand thoroughly to
against project.

At last I will be thanking for all person who helped me out in each and every moment of
my project to providing for sufficient detail and material.

MOHAMMAD AQUIB
MBA (III Semester)
Roll No. MBA-15-16

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TABLE OF CONTENTS

Page No.

Executive Summary 01

Chapter I: Introduction 02-32

Objectives of the study

Review of Literature

Research Methodology

– Research Design

– Data Collection

– Data Analysis Techniques to be used

Limitations of the study

Chapter II: Profile of the Organization 33-36

Chapter III: Analysis and Interpretation of Data 37-66

Chapter IV: Conclusions and Recommendations 67-68

Bibliography 69

Annexure – Questionnaire 70-73

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EXECUTIVE SUMMARY

As per my survey report it is focused on customers behavior, preferences and their choice
are changing at a moment and market scenario is also changing from time to time.
Today’s market scenario is very different from that of the market scenario. There have
been many factors responsible for the changing market scenario. It is the customers
changing tastes and preference which has bought in a change in the market. Income level
of the people has changed; life styles and social class of people have completely changed
now than that of olden days. There has been a shift in the market demand in today’s
world. Technology is one of the major factors which is responsible for this paradigm shift
in the market. Today’s generation people are no more dependent on haat market and far
off departmental stores. Today we can see a new era in market with the opening up of
many departmental stores, hyper market, shopper’s stop, malls, branded retail outlets and
specialty stores. In today’s world shopping is not any more tiresome work rather it’s a
pleasant outing phenomenon now.

My study is based on a survey done on customers of a hypermarket named Big Bazaar.


Big Bazaar is a new type of market which came into existence in India since 1994. It is a
type of market where various kinds of products are available under one roof. My study is
on determining the customer’s demand for Big Bazaar and the satisfaction level of
customers in Big Bazaar. My study will find out the current status of Big Bazaar and
determine where it stands in the current market.

This market field survey will help me in knowing the present customers tastes and
preferences. It will help me in estimating the customer’s future needs and wants.

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Chapter-1
INTRODUCTION

“Any business that directs its marketing efforts towards satisfying the final consumer
based upon the organization of selling goods and services as a means of distribution” by
2014-15, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail
Marketing will go through a tremendous change in India this millennium. It will change
India's cities, its people, and its households. The Indian consumer is reportedly the largest
spender in Singapore and London. It is, therefore, strange that there have, so far, been
few efforts to present the product in the right kind of environment in India. Indeed, the
right shopping experience does induce Indian consumers to spend more. This is evident
from the experiences of retail-outlets like Music. World, Big Bazaar, Spencer’s,
Crosswords, The Home Store, Ebony, Bigjo’s, Saboos, Standard, Nanz, Vijay Store and
Janaki Das & Sons, Westside etc.

Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and
requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India
Ltd. and is an answer to the United States’ Wal-Mart. Big Bazaar has released the doors
for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils,
and home furnishings etc. at best economical prices.

Big Bazaar group offers more than 100 stores all over the country with an amalgamation
of Indian bazaars’ feel and touch with a convenience and choice of the modern retail
facilities. The retail format of the Big Bazaar group includes Aadhar, Rural & Home-
Town retail chain, Ezone home-improvement chain, sportswear retailer, depot and music
chain is few among others.

The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr.
Kishore Biyani. The group do not promises more than what it delivers. Their basic
attraction associated with reasonable prices is their Unique Selling Price.

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Though, the products Big Bazaar stores stocks might not be advanced, but the customers
are assured to avail the worth of the money spent by them. In 2001, the group opened its
first store on the VIP Road, Calcutta, which was the primary departmental store offering
regulated services of parking, steel vessels, apparel, electronics etc under the one roof at
the competitive prices. Big Bazaar has become a massive hit with lower middle-class and
middle class people as a major client base.

At present, the Future Group comprises various formats and brands like Pantaloons,
F123, Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart,
HomeTown and Central. The Big Bazaar has several stores located all over the India,
among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and
Delhi is those metro cities where the stores of Big Bazaars are located. The variety of
Product Range in Big Bazaar.

This large format store comprise of almost everything required by people from different
income groups. It varies from clothing and accessories for all genders like men, women
and children, playthings, stationary and toys, footwear, plastics, home utility products,
cosmetics, crockery, home textiles, luggage gift items, other novelties, and also food
products and grocery. The added advantage for the customers shopping in Big Bazaar is
that there are all time discounts and promotional offers going on in the Big Bazaar on its
salable products.

Significant features of BIG BAZAAR


Shopping in the Big Bazaar is a great experience as one can find almost everything under
the same roof. It has different features which caters all the needs of the shoppers. Some of
the significant features of Big Bazaar are:
• The Food Bazar or the grocery store with the department selling fruits and
vegetables
• There is a zone specially meant for the amusement of the kids
• Furniture Bazar or a large section dealing with furniture
• Electronics Bazar or the section concerned with electronic goods and cellular
phones

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• FutureBazaar.com or the online shopping portal which makes shopping easier as
one can shop many products of Big Bazaar at the same price from home well
regulated customer care telecalling services

FACILITIES OFFERED BY BIG BAZAAR

• Online shopping: Big Bazaar has an official website, FutureBazaar.com, which


is one of the most favorite sites among people of India for online shopping.
FutureBazaar is an online business venture of Future Group, which sells an
assortment of products such as fashion, which includes merchandise for men and
women, mobile accessories, mobile handsets and electronics like home theatres,
video cameras, digital camera, LCD TVs, kitchen appliances and many more.
• Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein
extra and special discounts were offered on Wednesday every week, to attract the
potential buyers into their store.

• Security check: At each exit of Big Bazaar, they use alarm systems or Electronic
Article Surveillance system, which detects the products that has attached tags or
not.

“Retailing is a distinct, diverse and dynamic sector”. It is an activity of enormous


economic significance to most developed nations. It generates revenue and wealth for
nation, encourages investments and brings technological advancements. Stated that it
brings employment and creates wealth of the economy. It is a vibrant part of our
changing society and a major source of employment. Retailing performs activities at
larger level so it requires massive manpower to handle and manage its operations.
Retailing also helps society in general by providing goods and services in reasonable
price and increasing their standards of living. Retailing activity can be viewed as a
significant contributor to the economy in general. Retailing is the set of activities that
markets products or services to final consumers for their own personal or household use.
It does this by organizing their availability on a relatively large scale and supplying them
to consumers on a relatively small scale. It makes products and services available in large

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quantities. Retailers produce or order the products/services in bulk so they can take
advantage of economy of scale and thus they can formulate competitive pricing
strategies. Products and services are generally sold through the store or on the internet.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200
billion. India retail industry is one of the fastest growing industries with revenue expected
in 2013-14 to amount US$ 350 billion and is increasing at a rate of 5% yearly. A further
increase of 7-8% is expected in the industry of retail in India by growth in consumerism
in urban areas, rising incomes, and a steep rise in rural consumption. It has further been
predicted that the retailing industry in India will amount to US$ 21.5 billion by 2014
from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution
with the change in the consumer buying behavior and the whole format of shopping also
altering. Industry of retail in India which has become modern can be seen from the fact
that there are multi- stored malls, huge shopping canters, and sprawling complexes which
offer food, shopping, and entertainment all under the same roof. India retail industry is
expanding itself most aggressively; as a result a great demand for real estate is being
created. Indian retailers preferred means of expansion is to expand to other regions and to
increase the number of their outlets in a city. It is expected that by 2010, India may have
600 new shopping centers. India retail industry is progressing well and for this to
continue retailers as well as the Indian government will have to make a combined effort.

Retail Space
Driven by changing lifestyles, strong income growth and favorable demographic patterns,
Indian retail is expanding at a rapid pace. Mall space, from a meager one million square
feet in 2002, is expected to touch 40 million square feet by end-2007 and an estimated 60
million square feet by end-2008, says Jones Lang LaSalle's third annual Retailer
Sentiment Survey-Asia. Alongside, Indian cities are witnessing a paradigm shift from
traditional forms of retailing into a modern Big Bazaar organized sector. A report by
Images Retail estimates the number of operational malls to more than double to over 412
with 205 million square feet by 2010 and further 715 malls by 2015.
Recent Trends
a) India is rated the fifth most attractive emerging retail market.
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b) Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
c) As per a report by KPMG the annual growth of department stores is estimated at
24%.

Current Scenario of Retail:


A glimpse of the International Retail One of the world's largest industries exceeding US$
9 trillion 47 global fortune companies & 25 of Asia's top 200 companies are retailers
dominated by developed countries US, EU & Japan constitute 80% of world retail sales.
Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail:


a) USA - 85%
b) Taiwan - 81%
c) Malaysia - 55%
d) Thailand - 40%
e) Brazil - 36%
f) Indonesia - 30%
g) Poland - 20%
h) China - 20%
i) India - 3%

Pantaloon Retail India Ltd (PRIL) has emerged as the leading retailer in India with its
chain of Pantaloon, Big Bazaar and Food Bazaar stores. With the right mix of
management capabilities, high growth product profile, well-developed strategy and
extensive IT and logistics capabilities, PRIL has ensured rapid growth. More importantly,
while most organized retailers are struggling to be in black, PRIL has demonstrated a
consistent track record of profitable growth.

PRIL has chalked out an aggressive expansion plan to increase its retail space to over
1,740,000 sq.ft. over the next two years. Space for additional 4 Pantaloon’s, 11Big
Bazaars and 2 Food Bazaar’s has already been finalized, and these would be Operational
over the next two years. PRIL aims to set up over 30 Food Bazaar’s and is scouting for

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appropriate locations for the same. After popularizing the concept of hypermarket in
India, PRIL is now also setting up a new format shopping mall in the country under the
name ‘Central’. The format would be on the lines of a Selfridhes in London or a Central
Mall in Bangkok. Two malls of 100,000 and 240,000 sq.ft. are being set up in Bangalore
and Hyderabad respectively

Diversity of product range will ensure profitable volume growth

To achieve better return on retail space, PRIL uses certain product categories as margin
managers and certain product categories to generate traffic. The food and groceries
business will act as key volume growth driver while high share of apparel (which account
for over 80% sales in Pantaloon Stores and 40% in Big Bazaar) will enable PRIL to
maintain high margins. The management has demonstrated its ability to improve stock
turnovers in both the formats successfully, which has enabled significant margin
improvement.

Fully integrated value chain and own labels give competitive edge

PRIL has a completely integrated value chain in apparels from fabric manufacturing to
apparel manufacturing, branding, distribution to retailing. The company controls the total
value chain from yarn to apparel retailing hat gives a competitive edge in terms of speed
of delivery, lower inventory carrying costs and better realizations. Also, large part of
PRIL’sapparel revenues comes from own private labels. PRIL has developed significant
competencies in apparel branding over a period of time and has developed own labels
(John Miller, Shrishti, Bare, Annabelle, AFL) in all the apparel product categories.
Worldwide, private labels give higher margin to retailers than the national brands. Also
growth of private labels is faster as retailer controls shelf space and visibility.

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High scalability of business model – multiplier effect will set in

Size and scale drive economies on procurement and lower logistics costs, which enables a
retailer to deliver better value to customers. The hyper-market format has much higher
scalability as compared to the pure apparel retailing format. Also, the potential to expand
and scale is virtually unlimited in the food & grocery segment, where efficiencies
improve dramatically with scale as the multiplier effect sets in. Food constitutes the
largest expenditure item (estimated at over 50%) of an average Indian’s monthly personal
expenditure. However, the share of modern retail formats in the Rs6700bn Food &
Grocery market is a minuscule 0.3%, revealing the high growth potential in the segment.

New product categories and innovative tie-ups to aid growth

PRIL offers large number of products to the customer to give them better choice for
selection. Different product categories have different depth and width in merchandise
offering. Besides, PRIL has tied up with Shop-in-Shop partners in its Big Bazaar stores.
Some product categories where the company does not have core competency or does not
want to invest, but would attract customers are catered through these partners.
Eventually, in the long run, the Company may manage some of these product categories
on its own as volumes grow and it develops competencies in these businesses. Shop-in-
Shop partners typically pay a fixed rental for their space and share a part of their profits.
By expanding the range of product offerings and retail formats, PRIL today has been able
to target a much larger share of the consumer’s basket (about 70% as against less than 8%
in 1994). PRIL will be adding new product categories to its business in both Pantaloons
as well as Big Bazaar stores. Gold, Investment products, White goods and Appliances,
Footwear will be the new product categories that will be added. These product categories
will help in improving Walk In’s into its stores and generate additional business from the
existing categories too.

Competition from global players would pose a major threat

Most global retailing majors have been keen on entering into the huge untapped Indian
market. However policy restricts Direct Foreign Investment in the sector. There is a high

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likelihood of the Government lifting restriction on FDI into the retail sector in the near
future. Entry of these foreign giants - with significant experience and skills in retail
management would increase competition for PRIL. However, we believe that given the
widely dispersed and heterogeneous nature of Indian markets, a foreign entrant would
find it extremely difficult to establish a national presence. Pantaloon with its early mover
advantage and understanding of local markets is well entrenched to retain high customer
share.

Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 as Manz
Wear Private Limited under the stewardship of Mr. Kishore Biyani. It was converted into
a public limited company in September, 1991. The company sold branded garments
under Pantaloon, Bare and John Miller brands. PRIL set up its first menswear Pantaloon
Shoppe outlet in 1993. The company’s name was changed to Pantaloon Retail (India)
Limited in 1999, when it made a full fledged entry into the retail segment through the
Pantaloons Family Store.

Pantaloon Retail (India) Ltd. The Company's principal activity is to operate chain retails
stores in names of Big Bazaar, Food Bazaar, Central and Pantaloons. The Big Bazaar is
the discount store which offers a wide range of products under one roof. The products
include apparels and non-apparels such as utensils, sports goods and footwear. The
Company also has its presence into gold retailing by launching Gold Bazaar. The
Company's Food Bazaar provides a range of food and grocery products ranging from
fresh fruits and vegetables, staples, FMCG products and ready-to-cook products. The
Central offers a chain of stores including books and music stores, global brands in
fashion, sports and lifestyle accessories, grocery store and restaurants. The Pantaloon
retail stores focus largely apparels and accessories.

Pantaloon Retail (India) Limited is a leading retailer with a turnover of Rs. 1088 crores
for the financial year ending June 2009. The company is headquartered in Mumbai and
has a presence in Lifestyle Retailing through 18 Pantaloons Stores, 3 Central Malls in
Bangalore, Hyderabad and Pune. In Value Retailing it is present through 24 Big
Bazaar hypermarkets,38 Food Bazaars and 2 Fashion Stations. PRILhas a national
presence with 2.6 million square feet of retail space across 24 cities.

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PANTALOON: FASHION BY PANTALOON

Pantaloon is the company's departmental store and part of life style retail format. In fact,
PRIL took its very initial steps in the retail journey by setting up the first Pantaloon store
in Kolkata in 1997. In a short time Pantaloon has been able to carve a special place for it
self in the hearts and minds of the aspirational Indian customers. The company has depth
of offering for both men and women at affordable prices. A striking characteristic of
Pantaloon has been the strength of its private label programme. John Miller, Ajile.
Scottsvile, Lombard, Annabelle are some of the successful brands created by the
company. With 13 stores across the country and an ever-increasing stable of private
brands, Pantaloon - in the coming years is poised to become a leading fashion trendsetter.

BIG BAZAAR: IS SE SASTA AUR ACHA KAHIN NAHIN

Big Bazaar is the company’s foray into the world of hypermarket discount stores, the first
of its kind in India. Price and the wide array of products are the USP’s in Big Bazaar.
Close to two lakh products are available under one roof at prices lower by 2 to 60 per
cent over the corresponding market prices. The high quality of service, good ambience,
implicit guarantees and continuous discount programmes have helped in changing the
face of the Indian retailing industry. A leading foreign broking house compared the rush
at Big Bazaar to that of a local suburban train.

Food Bazaar – Wholesale prices

Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and
International supermarket atmosphere with the objective of giving the customer all the
advantages of Quality, Range and Price associated with large format stores and also the
comfort to See, Touch and Feel the products. The company has recently launched an
aggressive private label programme with its own brands of tea, salt, spices, pulses, jams,
ketchups etc. With unbeatable prices and vast variety (there are 42 varieties of rice on
sale), Food Bazaar has proved to be a hit with customers all over the country.

Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and
which work on Wal-Mart type economies of scale. They have had considerable success in

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many Indian cities and small towns. Big Bazaar provides quality items but at an
affordable price. It is a very innovative idea and this hypermarket has almost anything
under one roof….Apparel, Footwear, Toys, Household Appliances and more. The
ambience and customer care adds on to the shopping experience.

Is Se Sasta Aur Accha Kahin Nahin !!

What's in store for you at Big Bazaar?

1,70,000 products at 6- 60 % discount.

At Big Bazaar, you will get : A wide range of products at 6 – 60 % lower than the
corresponding market price, coupled with an international shopping experience.

If you deal in the categories mentioned there's a big deal of success for you.

Products available in Big Bazaar

Apparel and Accessories for Men, Women and Children.


Baby Accessories. Toys
Cosmetics Home Textiles Luggage

Crockery Home Needs Linens

Dress Materials Suiting & Shirting Household Appliances Sarees

Electrical Accessories Household Plastics Stationery

Electronics Hardware Utensils & Utilities

Footwear Home Decor

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Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and
International supermarket atmosphere with the objective of giving the customer all
the advantages of Quality, Range and Price associated with large format stores and also
the comfort to See, Touch and Feel the products.

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'FOOD BAZAAR' a division of Pantaloon Retail India Ltd is a chain of large
supermarkets with a difference. It was flagged off in April'02.With store sizes ranging
from 8,000 sq ft to 15,000 sq. ft. in Mumbai (two stores), Kolkata, Bangalore &
Hyderabad, it is opening more stores at Gurgaon (Delhi), New Bombay & Nagpur. It
currently caters to over 1.2 million customers every day across 4 outlets in India and is
soon set to expand and double this figure across 8 outlets all over the country by June
2013. Food Bazaar offers the Indian consumer the best of Western and Indian values. The
western values of convenience, cleanliness and hygiene are offered through pre packed
commodities and the Indian values of "See- Touch- Feel" are offered through the“Mandi”
atmosphere created by displaying staples out in the open, all at very economical and
affordable prices without any compromise on quality. This satisfies the Indian consumer
and comforts her before making her final buying decision. At other super markets, the
consumer is deprived of this factor. Truly the Indian consumer now agrees with Food
Bazaar: "Ab Ghar Chalaana kitna Aasaan”. This positioning platform of Food Bazaar
is evident from the higher discounts and the wholesale price-points which is below MRP.

Food Bazaar represents the company’s entry into food retail and is targeted across all
classes of population. Food Bazaar replicates a local ‘mandi’, to provide the much
important ‘touch & feel’ factor which Indian housewives are used to in the local bazaar.
Food Bazaar has over 50,000 stock keeping units which cover grocery, FMCG products,
milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides fruits and
vegetables. All products are sold below MRP and discounts range between 2% to 20%.
Fruits and vegetables are sold at prices comparable to wholesale prices.

The Indian consumer could well be crowned King with all economic indicators in the
right place. Queuing up for the coronation ceremony are a multitude of global companies
that are looking at India as the next consumer market powerhouse. And it seems to be the
retail sector that will give the desi consumer royal status. Retailing is the final step in the
distribution of merchandise, the last link in supply chain – connecting the bulk
procedures of commodities to the final consumers.

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Retailing in India is thoroughly unorganised. There is no supply chain management
perspective. According to a survey b y AT Kearney, an overwhelming proportion of the
Rs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs. 20,000 crore
segment of the market is organised. From a size of only Rs.20,000 crore, the
ORGANISED retail industry will grow to Rs. 160,000 crore by 2014. The TOTAL retail
market, however, as indicated above will grow 20 per cent annually from Rs. 400,000
crore in 2012 to Rs. 800,000 crore by 2014.

A study by McKinsey points out that India's market for consumer goods could reach a
whopping $400 billion by 2014 - making it one of the five largest in the world. Further,
KPMG in a recent report titled `Consumer Markets in India - the next big thing?' has
said: "India represents an economic opportunity on a massive scale, both as a global base
and a domestic market." The report, however, finds that the next leap in the growth of the
consumer market will be spearheaded by the changing dynamics of the retail sector.
"Companies expect that the next cycle of change in Indian consumer markets will be the
arrival of foreign players in consumer retailing. Although FDI remains highly restricted
in retailing, most companies believe that will not be for long," says Deepankar Sanwalka,
Executive Director and Head - Consumer Markets, KPMG India.

FDI in retail has once again begun to appear imminent following Prime Minister
Manmohan Singh's recent interview to McKinsey, in which he expressed confidence that
he would be able to get the Left parties on board on the matter. KPMG is in fact going
ahead with its plans to conduct a series of five roadshows in the US and a few countries
in Europe to hold discussions about the opportunities in India's consumer markets,
especially in retail. And the numbers do lend credence to the enthusiasm.

The Economist Intelligence Unit (EIU) country briefing on India, 2005, estimates the
retail market in India will grow from $394 billion in 2005 to $608.9 billion in 2009. In
fact, KPMG finds that the organised retail sector in India is expected to grow at a higher
rate than GDP growth in the next five years, driven by changing lifestyles, strong income
growth and favourable demographic patterns. According to EIU, India currently has more
than five million retails outlets, out of which 96 per cent are smaller than 500 sq. ft. But

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this scenario is changing fast. The structure of retailing is developing rapidly with malls
becoming increasingly common in large cities, and development plans being projected at
150 new shopping malls by 2013-14.

Emerging Trends in Organized Retailing

Over the last five years, a number of large business groups such as Tata’s, RPG, Raheja’s
and Piramal’s has set up stores/malls and built businesses within retail. These include the
Rs1.9bn Food World - a leading supermarket chain set up by RPG; the Raheja’s Rs1.8bn
Shopper’s Stop - a multi-brand departmental outlet and the Crossroads Mall set up by the
Piramal’s. While many of these initiatives were initially driven by the need to use
existing real estate, they are beginning to assume the contours of a serious business today.
Fuel retailers, notably BPCL and HPCL are also expanding their presence from fuel retail
to grocery and convenience stores. Suitability of location, optimal utilization of real
estate, diversifying business to reduce reliance on the commodity nature of fuel retail
business and improve margins are the key factors that has lead fuel majors to enter into
the retailing. Also, existing family owned businesses are expanding their businesses. The
more successful of them are the Nilgiris - a Bangalore base food retailer, Viveks - a 40-
year old Chennai based chain selling consumer durables and Narula’s - the food chain in
North India. Interestingly, manufacturers are also looking for forward integration and are
building chains around brands. Brands in apparel, footwear and durables have driven the
growth of specialty chains and upgraded existing multi-brand outlet.

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Theme for a Mall

Although the retail sector in India highly fragmented and consists predominantly of
small, independent, owner-managed shops, it happens to be the country's second
largest employer after agriculture. The country is currently witnessing a boom in
retailing, thanks mainly on account of an increase in the disposable incomes of
middle and upper-middle class households.

More and more corporate houses, including large real estate companies, are now entering
the retail business directly or indirectly. One sign of the modernization of Indian
retailing is the rapid growth in the number of speciality malls and theme malls. The
Piramals, Tatas, Rahejas, ITC, S. Kumar's, RPG Enterprises, Aerens, Omaxe and
mega retailers like Crosswords, Shopper's Stop and Pantaloon have taken the lead in
organised retailing.

Emergence of Specialty Retailing

Though organised retailing is still at a nascent stage - accounting for only around two per
cent of the $180 billion retail market in India - it is likely to touch 10 per cent by the
end of this decade. Four product categories have led the organised retailing wave:
foods, apparel, lifestyle products, consumer durables and electronics. In recent times,
several theme malls such as Gold Souk (jewellery malls), Wedding Mall, Electronic
Mall, Auto Mall, etc catering to specific needs and occasions have been completed or
announced.
Many top developers are now toying with the idea of developing speciality malls.
Speciality malls are already a success in the West, whereas the concept is in its infancy in
India. One could venture so far as to say speciality and theme based retailing will drive
the growth of organized retailing in India.

Process of CRM

Customer Relationship Management (CRM) is the process of bringing the customer and
the company closer together. There are many different areas in which Customer

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Relationship Management can be implemented. The goal of CRM is to help a company
maintain current customers, as well as gain new customers.

Targeted marketing is accomplished through collecting information about the customer.


This information can be buying habits or simply demographics. The idea behind this is
that a business analyzes what a customer buys and then markets specific products to that
customer based on his or her buying habits. Businesses track buying habits using discount
cards, and special store credit cards. Targeted marketing can also be implemented on the
Internet. Amazon.com has product recommendations based on buying habits, and product
ratings. Customers can also be sent e-mails that market targeted products. Marketing the
right products to the right customers can significantly increase a business' sales with
minimal associated costs. (http://www.crminfoline.com/ CRM Process works )

Consumer Behaviour in Big Bazaar

Options: Consumers are more likely to choose an alternative after a relatively inferior
option is added as a choice. For example, Simonson says, participants in one study were
given a choice between $6 and an elegant Cross pen. A second group chose among $6,
the same Cross pen, and a second pen that was clearly less attractive than the Cross pen.
As was predicted, the addition of the unattractive pen increased the share of the Cross pen
at the expense of the $6.

Alternatives: Consumers prefer alternatives that are compromise choices. Given a choice
between two alternatives, one priced lower than the other, the addition of a third choice,
priced higher than both, will increase the market share of the more expensive of the
original two. This finding suggests that companies can increase their overall sales and
shift purchases to higher-margin items by carefully designing the sets of alternatives that
their customers consider.

Floor Displays: Buyers are averse to choosing the lowest-quality alternative in sets of
three or more choices. One of the implications of this finding is that marketers of well-
known, high-priced brands should encourage retailers to organize floor displays by model

17
type, whereas marketers of lesser-known, lower-priced brands should prefer organization
by brand.

Brands: Consumers who think about the possibility that their purchase decisions will be
wrong are more likely to choose better known brands. In a test case, Simonson showed
that consumers debating between a better known, more expensive brand and a lesser-
known, less expensive brand expect to feel greater regret if they err by choosing the
cheaper option. Indeed, after thinking about the possibility of regret, consumers were
more likely to select the better-known brand. Kodak film has capitalized on this finding
with an advertising campaign that asks consumers to consider how they would feel if they
bought cheap film and their pictures didn't turn out.

Preferences: Consumers tend to select variety when buying multiple products for
consumption at a later time. In each of three weeks, Simonson asked a group of
respondents to select one of six familiar snacks for immediate consumption. A second
group was asked to pick three snacks -- one for immediate consumption and one for each
of the next two weeks. Both groups were told that they could pick the same snack as
many times as they wished. Those in the first group tended to select the same snack all
three times, whereas most in the second group selected three different snacks.

Product Modifications: Modifying a product with a feature or premium that is of little or


no value to the consumer, even without raising the price, may actually decrease sales.
When consumers are uncertain about their preferences, a product that offers an unneeded
add-on (such as an offer to purchase a Pillsbury Doughboy collector's plate) provides
them with a reason for rejecting it.

While marketing professionals can use these findings to influence consumer decision
making, consumers, too, can benefit by understanding their own behavior. "One of the
points of our research is to inform consumers about some of the factors that influence
their decisions," Simonson says. "With such knowledge, they may be able to make better,
more thoughtful decisions."

Big Bazaar: Brand Extensions Actually Made & Future Possibilities

18
Future Group is planning to split Big Bazaar into two entities. One will be front-end
consumer-oriented entity and other will be for back-end operations. Back-end entity may
enter into joint venture with leading international cash and carry retailers. Foreign
partners like Carrefour, Metro, Costco, etc., are in the race, and their role will be to
improve efficiency in sourcing and logistics, which will help drive down prices and boost
margins.

The front-end operations will be further divided in three categories, Big Bazaar Express
with store area less than 40,000 sq. ft., Standard Big Bazaar with store area between
40,000 to 75,000 sq. ft., and Big Bazaar Supercentres with store area more than 75,000
sq. ft. . Future Group is also planning to distribute financial products like consumer loans
and insurance through Big Bazaar outlets.

BIG BAZAAR: Positioning & Establishment

Big Bazaar has established itself in the first quadrant of Organization Value and
Customer Value Matrix. Big Bazaar elaborates the core competencies and areas of
improvement. The key features that have shaped in establishing of brand includes: -

• Big Bazaar ensures that no other kirana store / departmental store are offering
considerable discount compared to its own price. This helped Big Bazaar in being
the "value for money" store.
• Big Bazaar scores high on product mix as compared to kirana store.
• Cheap and local products are heavily stocked in Big Bazaar which make it easier
to attract lower middle class category of customers.
• Promotion of kirana is rare event but Big Bazaar used this channel efficiently to
establish itself as national brand.
• Customer loyalty resulting in high up sell, i.e., selling to existing customers.
• Big Bazaar refrains from high-end locations for business which reduces its rental
budget and provides competitive advantage over competitors. Kishore Biyani has
taken "early movers advantage" in many retail spaces.

Customer Satisfaction is Big Bazaar

19
The degree of customer satisfaction you deliver determines the level of long-term
success you will achieve in business.” - --- Training Mantra for Sales Force”
Don't just make sales. Create customers - satisfied customers”. In addition to the
immediate profit they provide on the first sale, satisfied customers help you build
your business in 2 other important ways:

1. They become a reservoir of repeat buyers. For some businesses that means repeat
buyers for more of the same product or service. For every business, it means
buyers for additional products and services.

2. They automatically refer more business to you from their friends and business
contacts. This is highly profitable business for you because it doesn't cost you any
time or money to get it.

Never make any promises you can't (or won't) keep. Nothing alienates customers faster
than getting something less than they expect from a business transaction. They
won't do business with you again. And they will tell everybody they know about
their unhappy experience - causing you to lose future customers.

"Over deliver" on quality and service. Always exceed your customers' expectations. You
will win their long term loyalty. It also makes it difficult for competitors to steal
customers from you - even if they have lower prices. Customers will not risk an
uncertain experience with a competitor when they know they will get more than
they expect from you.

Let your customers know you are always thinking about them. Communicate with them
regularly. For example, create some special deals just for your existing customers.
And announce new products or services to them before you announce them to the
general market. (Tushar Ranjan Kantha

Consumer Insights & Perceptions

20
Big Bazaar is based on 3-C theory of Kishore Biyani. The 3-C symbolize Change,
Confidence and Consumption, and according to this theory, "Change and confidence is
leading to rise in Consumption". They divided Indian customers in three categories: -

India One

• Consuming class, constitutes only 14% of Indian population.


• They are upper middle class and most of customers have substantial disposable
income.
• Initial focus of Big Bazaar.

21
India Two

• Serving class which includes people like drivers, house-hold helps, office peons,
washer-men, etc.
• For every India One, there are at least India Two and have around 55% of Indian
population.

India Three

• Struggling class, remaining population of India.


• Cannot afford to inspire for better living, have hand-to-mouth existence.
• Needs cannot be addressed by current business models.

The potential customers of Big Bazaar are India One and India Two. The customer
insights are developed by close observation of the target set. The insights that came out
are: -

• The clean and shiny environment of modern retail stores creates the perception
that such store are too expensive and exclusive, and are not meant for India Two.
• India Two finds moves and find a lot of comfort in crowds, they are not
individualistic. They prefer to be in queues.
• Indian-ness is not about swadeshi, it's about believing in Indian ways of doing
things.
• Indian customers prefer to purchase grains, grams, etc., after touching them, so it's
better not to sell in polythene packs. Big Bazaar has counters where you can touch
wheat, rice, sugar, etc., before purchasing.

Advantages of CRM for BIG BAZAAR

• Provide better customer service


• Increase customer revenues
• Discover new customers

22
• Cross sell/Up Sell products more effectively
• Help sales staff close deals faster
• Make call centers more efficient
• Simplify marketing and sales processes

Challenges For Big Bazaar in CRM implementation:

• Difficulty in acquiring new customers can be a result of any one, or combination,


of the following problems.
• .Inaccurate and Slow Quoting Organizations may be unable to accurately estimate
and quickly deliver successful proposals, often leading to missed opportunities,
bad profit margins and upset prospects.

• Lack of Product Knowledge Within their Sales Force

• Problems can arise when products were sold that didn’t fit company's profitability
strategy such as selling a customer one product when another would be better for
the customer and more profitable for you.

• Difficulty and Delay in Updating Pricing and Product Information

23
BIG BAZAAR AT DELHI METRO STATIONS

Pantaloon Retail (India) Limited, the country’s leading retailer, opens 2 BIG BAZAARS
in Delhi. The two BIG BAZAARS are located at the Wazirpur and
Inderlok Metro Stations respectively. This is the first time a discount
hypermarket has opened at a station and Big Bazaar is proud to be the
first to offer a never-before shopping experience to the metro commuters. The national
tally of BIG BAZAAR is now at 20 taking the total tally of BIG BAZAAR in NCR
region to 4.Both BIG BAZAAR, Wazirpur & BIG BAZAAR, Inderlok have FOOD
BAZAARS within the store. This takes the national tally of Food Bazaar to 32 and total
tally of Food Bazaar in NCR to 5.

BIG BAZAAR will provide shoppers with a completely new shopping


experience and make available -a range of products for every household
need at never before prices Shoppers for the first time will have the
widest range of products in every segment – Women’s Apparel, Men’s Apparel,
Accessories like belts and bags, Cosmetics, Gold Jewellery, Kids Wear, Stationary and
Toys, Footwear, Plastics and Home Décor products, Utensils & Home Appliances, Gift
Articles, food and grocery items.

Food Bazaar will offer services like ‘Live Kitchen’ where customers can get vegetables
cut and select gravies of their choice, ‘Golden Harvest’ providing best quality grain,
pulses & spices, ‘Ready to cook’ and ‘Hungry Kya’ the ready to eat food sections. In
addition, regular Food Bazaar offerings of Grains and Provisions, Farm Fresh Fruits &
Vegetables, Drinks & Beverages, Dairy Products, Fabric Care products, Music Cassettes
and CD’s, Chill Station, Home Care Products, Accessories, Kitchen Linen, Kitchen
Products, Personal Care Products, Bakery, Mithai & Namkeen etc., will be available at
wholesale prices.

On the occasion of the launch, Mr. Kishore Biyani, Managing Director, Pantaloon Retail
(India) Ltd., said, “We are very proud to open 2 BIG BAZAARS at the 2 Metro Stations

24
in Delhi. As has been the homemaker’s experience across the country, the store is a
support to the homemaker’s untiring effort of saving the maximum while giving the best
to her family. Our opening of the 2 stores in Delhi after the runaway success of the other
stores at Gurgaon & Ghaziabad shows our commitment to this region. It also reflects the
love and affection the people of this region have showered on us!”

Living up to its motto of “Is se sasta aur accha kahin nahin", all products in BIG
BAZAAR will be available at prices lower than the MRP, often up to 60% discount. In
addition to this, various offers, discounts and promotions will be regularly held at the
store. The consumer will experience a new level of standard in price, convenience and
comfort, quality, quantity, and store service levels. BIG BAZAAR in its true hypermarket
model will offer all of the above for both leading brands as also for its private labels.

Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket,
discount & warehouse retailing principles. Product assortment goes beyond routinely
purchased goods & includes furniture, large & small appliances, clothing items and many
other items. Bulk display & minimum handling by store personnel with discounts offered
to customers who are willing to carry heavy appliances and furniture out of the store.
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group. Kishore Biyani said: “We
have been evaluating the option of creating a new entity for our value retailing
businesses.” It believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas. The group's corporate credo is, 'Rewrite rules, Retain
values'.

25
BIG BAZAAR AT GURGAON

Today, housewives and compulsive shoppers in Gurgaon need not step elsewhere for
shopping. With Big Bazaar, the hypermarket (discount store) from Pantaloon Retail
(India) Ltd. opening its first outlet in North India, they have a lot to choose from. Spread
over an area of around 50,000 sq ft, Big Bazaar offers a variety of products 2% to 60%
lower than the corresponding market price. After consolidating its position in 4 cities –
namely Hyderabad, Kolkata, Bangalore and Mumbai (Lower Parel and Mulund), Big
Bazaar is all set to win t! he hearts of people in Delhi and Gurgaon.

Speaking at the launch, Mr. Kishore Biyani, Chief Knowledge Officer, Pantaloon Retail
(India) said, "The Company was the first in India to launch a hypermarket discount store
- Big Bazaar. Seeing the tremendous response, today we are pleased to bring the same
excitement to shoppers in and around Gurgaon in the form of Big Bazaar with its variety,
discounts and shopping ambience. The main attraction at Big Bazaar is the product
variety. The company will stock about 1,70,000 items. In short, there is something for
everyone."

Big Bazaar has apparel and accessories for men, women and children besides Cosmetics,
Toys, Home Needs, Household Appliances, Gift items, Jewellery, Luggage, Linen, and a
lot more.

Food Bazaar, with an area of around 10,000 sq ft is also a part of Big Bazaar offering
products at wholesale rates below the MRP. To attract regular bazaar-goers, a mandi has
been created within Food Bazaar where Consumers could touch, feel, pick & choose
products. This choice has been supplemented by the provision of packaged food for the
Westernized shoppers. Food Bazaar will stock around 10,000 stock keeping units
(SKUs). These will include provisions, vegetables, fruits and fresh produce, FMCG
products, bakery products, basic staples, cereals, pulses, cooking oils, flour, spices, dry
fruits, health food, baby food, dairy products, drinks, beverages as well as ready-to-eat
and ready-to-cook product! s. There are special purchase offers and discounts worked out
with several leading brands exclusively for Food Bazaar customers making shopping at
Food Bazaar highly affordable.

26
OBJECTIVES OF THE STUDY

The main objectives of the study are as follows:-

1. To analyze the consumer behaviour in retail industry with reference to Big


Bazaar.
2. To study the current status and consumer attitude toward Big Bazaar in
retail sector.
3. To find out the customers response towards Big Bazaar.
4. To determine the customer satisfaction level and different attributes of Big
Bazaar and other retail companies.

27
LITERATURE REVIEW

The topic of consumer behaviour is one of the massively studied topics by the researchers
and marketers in the past and still being studied. Researchers show different reasons as to
why consumer behaviour has been the topic of many academics and researchers. One of
the common views is that understanding consumer behaviour has become a factor that
has a direct impact on the overall performance of the businesses (Kotler and Keller,
2012). Another view suggests that understanding consumer behaviour has become crucial
especially due to fierce competition in retail industry in the UK and worldwide
(Lancaster et al, 2002). This chapter will introduce some other areas of research
background of consumer behaviour addressing the works of researchers and marketers.
Moreover, consumer decision making process, in particular, five stages of consumer
decision making process will be discussed in detail.

It is worth noting that consumer buying behaviour is studied as a part of the marketing
and its main objective it to learn the way how the individuals, groups or organizations
choose, buy use and dispose the goods and the factors such as their previous experience,
taste, price and branding on which the consumers base their purchasing decisions (Kotler
and Keller, 2012).

One of such studies of consumer buying behaviour has been conducted by Acebron et al
(2000). The aim of the study was to analyze the impact of previous experience on buying
behaviour of fresh foods, particularly mussels. In their studies the authors used structural
equation model in order to identify the relationship between the habits and previous
experience on the consumer buying decision. Their findings show that personal habits
and previous experience on of the consumers have a direct impact on the consumers’
purchase decision in the example of purchasing fresh mussels. They also found that the
image of the product has a crucial impact on the purchasing decision of the consumer and
further recommended that the product image should continuously be improved in order to
encourage the consumers towards purchasing.

28
Another study conducted by Variawa (2010) analyzed the influence of packaging on
consumer decision making process for Fast Moving Consumer Goods. The aim of the
research was to analyze the impact of packaging for decision making processes of low-
income consumers in retail shopping. A survey method has been used in order to reach
the research objectives. In a survey conducted in Star Hyper in the town of Canterville
250 respondents participated. The findings of the research indicate that low-income
consumers have more preferences towards premium packaging as this can also be re-used
after the product has been consumed. Although the findings indicate that there is a weak
relationship between the product packaging and brand experience. However, it has been
proven by the findings of the research that low-income consumers have greater brand
experience from the purchase of ‘premium’ products when compared to their experience
from purchasing ‘cheap’ brand products.

Lee (2005) carried out study to learn the five stages of consumer decision making process
in the example of China. The researcher focuses on the facts that affect the consumer
decision making process on purchasing imported health food products, in particular
demographic effects such as gender, education, income and marital status. The author
employed questionnaire method in order to reach the objectives of the research. Analysis
of five stages of consumer decision making process indicate that impact of family
members on the consumer decision making process of purchasing imported health food
products was significant.

The author further explains this by the fact Chinese tradition of taking care of young and
old family members have long been developed and marriage is considered to be
extremely important in Chinese tradition. This reflects in the findings of the study that the
purchase of imported health food products made by a person for the people outside the
family is declined significantly by both male and female Chinese after they get married.

Five Stages Model of consumer decision making process has also been studied by a
number of other researchers. Although different researchers offer various tendencies
towards the definitions of five stages, all of them have common views as they describe
the stages in similar ways. One of the common models of consumer decision making
process has been offered by Blackwell et al (2006). According to him, the five stages of

29
consumer decision making process are followings: problem/need recognition,
information search, evaluation of alternatives, purchase decision made and post-purchase
evaluation.

Each stage is then defined by a number of researchers varying slightly but leading to a
common view about what each stage involves. For example, according to Bruner (1993)
first stage, need recognition occurs when an individual recognizes the difference between
what they have and what they want/need to have. This view is also supported by Neal and
Questel (2006) stating that need recognition occurs due to several factors and
circumstances such as personal, professional and lifestyle which in turn lead to formation
of idea of purchasing.

In the next stage, consumer searches information related to desired product or service
(Schiffman and Kanuk, 2007). Information search process can be internal and external.
While internal search refers to the process where consumers rely on their personal
experiences and believes, external search involves wide search of information which
includes addressing the media and advertising or feedbacks from other people (Rose and
Samouel, 2009).

Once the relevant information about the product or service is obtained the next stage
involves analyzing the alternatives. Kotler and Keller (2005) consider this stage as one of
the important stages as the consumer considers all the types and alternatives taking into
account the factors such as size, quality and also price.

Backhaus et al (2007) suggested that purchase decision is one of the important stages as
this stage refers to occurrence of transaction. In other words, once the consumer
recognized the need, searched for relevant information and considered the alternatives
he/she makes decision whether or not to make the decision. Purchasing decision can
further be divided into planned purchase, partially purchase or impulse purchase as stated
by Kacen (2002) which will be discussed further in detail in the next chapters.

Finally, post-purchase decision involves experience of the consumer about their purchase.
Although the importance of this stage is not highlighted by many authors Neal et al
(2004) argues that this is perhaps one of the most important stages in the consumer

30
decision making process as it directly affects the consumers’ purchases of the same
product or service from the same supplier in the future.

The most noteworthy writers that serve as academic advocates of The Five Stage Model
of consumer decision making include Tyagi (2004), Kahle and Close (2006) Blackwell et
al. (2006), and others.

It is important to note that The Five Stage Model is not the only model related to
consumer decision-making, and there are also a range of competing models that include
Stimulus-Organism-Response Model of Decision Making developed by Hebb in 1950’s,
Prescriptive Cognitive Models, The Theory of Trying (Bagozzi and Warsaw, 1990),
Model of Goal Directed Behaviour (Perugini and Bagozzi, 2001) and others. All of these
models are analysed in great detail in Literature Review chapter of this work.

Factors Impacting Consumer Buyer Behaviour

It has been established that the consumer buying behaviour is the outcome of the needs
and wants of the consumer and they purchase to satisfy these needs and wants. Although
it sounds simple and clear, these needs can be various depending on the personal factors
such as age, psychology and personality. Also there are some other external factors which
are broad and beyond the control of the consumer.

A number of researches have been carried out by academics and scholars on identifying
and analyzing those factors affecting the consumers’ buying behaviour and as a result,
various types of factors have been identified. These factors have been classified into
different types and categories in different ways by different authors. For instance,
Wiedermann et al (2007) classified them into internal and external factor. On the other
hand, Winer (2009) divided them into social, personal and psychological factors. Despite
the fact that they have been classified into different groups by different authors they are
similar in scope and purpose (Rao, 2007).

There is a wide range of factors that can affect consumer behaviour in different ways.
These factors are divided by Hoyer et al. (2012) into four broad categories: situational,
personal, social and cultural factors.

31
Situational factors impacting consumer behaviour may include location, environment,
timing and even weather conditions (Hoyer et al., 2012). In order to benefit from
situational factors major retailers attempt to construct environment and situations in
stores that motivate perspective customers to make purchase decision. Range of available
tools to achieve such an outcome include playing relaxing music in stores, producing
refreshing smells in stores and placing bread and milk products in supermarkets towards
the opposite end of stores to facilitate movement of customers throughout the store to
make additional purchases etc.

The temporary nature of situational factors is rightly stressed by Batra and Kazmi (2008).

Personal factors, on the other hand, include taste preferences, personal financial
circumstances and related factors. The impact of personal factors on consumer decision-
making is usually addressed by businesses during market segmentation, targeting and
positioning practices by grouping individuals on the basis of their personal circumstances
along with other criteria, and developing products and services that accommodate these
circumstances in the most effective manner.

According to Hoyer et al. (2012) social factors impacting consumer behaviour arise as a
result of interactions of perspective consumers with others in various levels and
circumstances. Targeting members of society perceived as opinion leaders usually proves
effective strategy when marketing products and services due to the potential of opinion
leaders to influence behaviour of other members of society as consumers.

Lastly, cultural factors affecting consumer behaviour are related to cross-cultural


differences amongst consumers on local and global scales. Culture can be defined as “the
ideas, customs, and social behaviour of a particular people or society” (Oxford
Dictionaries, 2015) and the tendency of globalisation has made it compulsory for cross-
cultural differences amongst consumers to be taken into account when formulating and
communicating marketing messages.

32
RESEARCH METHODOLOGY

Research Design
The research work is exploratory in nature, and is meant to provide the basic information
required by research objectives. It is a preliminary study based on primary data and the
findings can be consolidated after a detailed conclusive study has been carried out.
Technology and customers tastes and preferences plays a vital role in today’s generation.
Research Methodology is a set of various methods to be followed to find out various
information’s regarding market strata of different products. Research Methodology is
required for every industrial service industries for getting acquire knowledge of their
products.

Data Collection Methods:


My project report has two types of data collection methods (i) Primary Data Collection
Methods and (ii) Secondary Data Collection Methods.
For Primary Data Collection Methods I have used questionnaire methods including
consumers, staffs, clients, visitors and users.
For Secondary Data Collection Methods I have used Books, Journals, Magazines and
Newspapers and Various Websites.

Area of Study:
The study is exclusively done in the area of marketing. It is a process requiring care,
sophistication, experience, business judgment, and imagination for which there can be no
mechanical substitutes.

Area: Delhi – NCR Region, NOIDA, Gurgaon

33
Sampling Design:
The convenience sampling is done because any probability sampling procedure would
require detailed information about the universe, which is not easily available further, it
being an exploratory research.

Sample Procedure:
In this study “judgmental sampling procedure is used. Judgmental sampling is preferred
because of some limitation and the complexity of the random sampling. Area sampling is
used in combination with convenience sampling so as to collect the data from different
regions of the city and to increase reliability.

Sampling Size:
The sampling size of the study is 100 respondents.

Data Analysis Tools & Techniques: -


The market survey and the techniques for consumer survey and using Graphical Data
Excel Graphs as like as Pie Chart and Bar Chart.

34
Chapter-II

PROFILE OF THE ORGANIZATION

As India’s leading retailer, Future Retail inspires trust through innovative offerings,
quality products and affordable prices that help customers achieve a better quality of life
every day. We serve customers in 95 cities across the country through over 10 million
square feet of retail space.

Future Retail is the flagship company of Future Group, India’s retail pioneer catering to
the entire Indian consumption space. Through multiple retail formats, we connect a
diverse and passionate community of Indian buyers, sellers and businesses. The
collective impact on business is staggering: Over 300 million customers walk into our
stores each year and choose products and services supplied by over 30,000 small,
medium and large entrepreneurs and manufacturers from across India. This number is set
to grow.

We operate multiple retail formats in both the hypermarket, supermarket and home
segments of the Indian consumer market including:

Big Bazaar is not just another hypermarket; it caters to every need of your family. Where
Big Bazaar scores over other stores is its value for money proposition for Indian
customers.

We guarantee that at Big Bazaar you will definitely get the best products at the best
prices. With the ever-increasing array of private labels, it has opened doors in the world
of fashion and general merchandise, including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning.

35
Winning the Hearts of Indian Consumers

Future Retail makes every effort to delight its customers, tailoring store formats to
changing Indian lifestyles and adapting products and services to their desires.

We operate some of India’s most popular hypermarket and home solutions retail formats.
Across value and lifestyle segments, our multi-format retail strategy caters to various
consumption needs of a wide cross-section of Indian consumers.

Future Retail Ltd. focuses on the hypermarket, supermarket and home solutions segment.

Our business is well capitalized to propel pure retail growth momentum. We believe the
Indian consumption story is intact and the combination of consumption and investment
driven growth will power our success. We aim to maintain our focus on increasing
consumption demand through innovative customer engagement activities.

We aim to continue on our growth path through a combination of realization efficiency


and space expansion. Our aim is to maintain the momentum of topline growth through
continuous efforts to increase store efficiencies and productivity as evident in improved.

The hypermarket and supermarket business is led by Big Bazaar, Fashion@Big Bazaar,
Food Bazaar and Foodhall covering an operational retail space of over 9 million square
feet, the company operates 163 Big Bazaar stores and 186 Food Bazaar stores, among
other formats, in over 95 cities across the country.

Fashion at Big Bazaar has been the face of affordable fashion destinations in India since
2008. With a mission to make India Thoda aur stylish, its philosophy reinstates the fact
that it doesn’t cost much to be stylish with FBB. It believes in aspirational value fashion.

36
From business meeting to casual resort wear, from versatile ethnics to comfortable home
wear, FBB creates exclusive merchandise for its audience under it's own private labels.
With a wide variety to choose from, FBB has something in store for everyone.

FBB targets a youthful audience in India that wishes to stay synonymous with current
trends. The brand spreads across all the metro cities, mini metros and also penetrates well
in tier II cities.

Food Bazaar invites you for a shopping experience in a unique ambience. At Food Bazaar
you will find a hitherto unseen blend of a typical Indian bazaar and International
supermarket atmosphere.

Flagged off in April’02, Food Bazaar is a chain of large supermarkets with a difference
where the best of Western and Indian values have been put together to ensure your
satisfaction and comfort while shopping.

The western values of convenience, cleanliness and hygiene are offered through pre-
packed commodities and the Indian values of ‘see-touch-feel’ are offered through the
bazaar-like atmosphere created by displaying staples out in the open.

The best of everything offered with a seal of freshness and purity will definitely make
your final buying decision a lot easier.

Launched in May 2011 in Mumbai, Foodhall is a premium lifestyle food destination that
targets the well-travelled urban Indian consumers who love to experiment with global
cuisine and promises to expose customers to the next level of food retailing. Currently
Foodhall is present in Mumbai, Bengaluru, New Delhi, Pune and Gurgaon.

37
This store designed for “foodies” is a one – stop shop for food lovers and offers
everything under one roof, right from daily essentials, exotic flavours, secret ingredients
to premium kitchen accessories.

Foodhall offers an assortment of fresh and packaged foods and covers international and
pan-Indian cuisine. From swiss truffles and camembert cheese to sourdough breads and
exotic berries from Europe, Foodhall with its exhaustive range of offering proves to be a
one-stop store for the curious and passionate souls who love to treat their taste buds with
something new each time.

Well stocked in fresh produce, dairy and packaged foods, this den for food enthusiasts
boasts of an extensive frozen section and a good delicatessen selling cheese and poultry.
One can also choose from their impressive array of breads, snacks, desserts and savories,
both Indian and international.

Foodhall also caters to all the dining and cooking needs of customers with an array of
kitchen accessories.

Foodhall with its array of exclusive offerings and an inviting environment with wooden
décor, warm lights and food visuals coupled with superior customer service and
innovative display of food promises to create a complete sensory experience which will
ensure an experiential, solutions oriented and most pleasurable shopping experience.

38
Chapter-III

ANALYSIS AND INTERPRETATION OF DATA

I have done a market field survey on Big Bazaar. I have surveyed around 100 respondents
of Delhi – NCR region who come to visit Big Bazaar. A specific questionnaire is
prepared for the customers and data is obtained from them by moving around Big Bazaar
and personally interacting with them. The customers gave me valuable information
regarding their consumption pattern in Big Bazaar. I collected all those information and a
proper analysis is done.

1. Are you aware of Big Bazaar?

Yes 70%

No 30%

Graphical Data Interpretation

As per above graph, there are 70% respondents said that they are aware of Big Bazaar
while rest are not aware.

39
2. What is purpose behind visiting Big Bazaar?
Shopping 60%
Outing 10%
Both 30%

PURPOSE

30%

Shopping
Outing
60% Both

10%

ANALYSIS:
Out of the 100 respondents 60% of respondents visit Big Bazaar for shopping, 10% for
outing and 30% visit Big Bazaar for both the purposes.

INTERPRETATION:

From this I interpret that Big Bazaar is purely a shopping complex but it also facilitates a
certain kind of ambience and decorum to the people that they also visit it for the purpose
of outing. The infrastructure and ambience of Big Bazaar is so that people even like to go
there even also they don’t have to purchase anything. People enjoy doing shopping in Big
Bazaar. This is very nice for it as often customers purchase some goods while moving in
the building.

3. Income wise distribution of customers coming to Big Bazaar?

40
Higher Income Group 5%

Middle Income Group 50%

Lower Income Group 20%

No Income Group 25%

INCOME GROUP

5%
25% Higher Income
Group
Middle Income
Group
Lower Income
50% Group
20% No Income Group

ANALYSIS
The above diagram shows the distribution of income level of customers coming in to Big
Bazaar. Among the 200 respondents 50% of customers are of middle income level that is
between Rs20000 – 60000. Least number of customers visiting Big Bazaar is the higher
income level people that constitute only 5%. The lower income level of people coming to
Big Bazaar constitutes of 20%. 25% of people belong to no income group which mostly
consists of students.

INTERPRETATION:
Big Bazaar is the hub of shopping for middle level income group people because of its
reasonable price on its each product category. The higher level income group people
don’t prefer to do shopping in Big Bazaar as it doesn’t deal with branded products. The
higher level income group people are very status conscious and their psychology is such

41
type that they don’t prefer much to visit Big Bazaar as it is a discounted store. The lower
income group people come in to Big Bazaar as they get goods at a discounted price.
Hence Big Bazaar should include branded products in its product category which will
encourage higher income group people to come in to Big Bazaar. Probably not much of
lower income group people come to Big Bazaar as they don’t like to have any shopping
experience rather they just go for near by store where they can get their necessity goods.
Even they purchase goods on a regular basis on a small quantity. So they don’t have
much interest to come to Big Bazaar and do shopping.

42
4. Demand for other retail outlets in a mall with reference to Big Bazaar?

Analysis:
The above graph shows that 65% of people visit garment outlet in a mall other than that
of Big Bazaar. 30% of people also prefer to visit food court in a mall other than Big
Bazaar. 20% of the people go to footwear outlet in a mall other than Big Bazaar. 20% of
people also go to mall for entertainment purpose. Some people that are 10% each also
visit gift corner store and jewellery & watches store in a mall other than Big Bazaar.

Interpretation:
From this analysis I come to know that most of the people tend to visit garment outlets in
a mall other than Big Bazaar as it has some exclusive branded outlets. People also go for
footwear stores as malls have branded footwear stores in it. People go for watching

43
movies to mall for entertainment. Yet a few people visits gift corners and jewellery stores
in a mall. This is of course a threat for Big Bazaar that it is not able to attract customers
from other retail outlets and retain them with it. Big Bazaar should definitely include
more of branded products in its product category in order to bring in the customers of
mall to it and retain them with it. It can include some of the exclusive branded outlets of
cloths and jewellery in it in order to attract the brand choosy customers.
5. Products mostly purchased by customers in Big Bazaar?

Clothes 60%
Grocery 70%
Food Item 50%
Leather Item 25%
Electronic Item 15%
Gift Item 10%
Any other Item 10%

Any other Item

Gift Item

Electronic Item

Leather Item Series1

Food Item

Grocery

Clothes

0% 20% 40% 60% 80%

ANALYSIS:
This chart clearly indicates that the demand for grocery that is 70% is highest by the
customers followed by clothes rated 60%. The next highest demand is for food items that
is 50%. 25% demand is for leather items in Big Bazaar. Electronic items holds 15% of

44
demand and gift items and other items has a demand of only 10% by the customers of
Big Bazaar.

Interpretation:
From this analysis I interpret that customers demand are high for grocery and clothes
followed by food items in Big Bazaar. Electronic items have a little demand by the
customers. Gift items and other items are not much in demand by the customers. I can
interpret that clothes, grocery and food items are the major products which hold
maximum number of customers. So Big Bazaar should maintain its low pricing and
product quality to keep hold of the customers and also it should keep more qualitative
products of gift and leather items so that people would go for more purchase of these
items from it. Big Bazaar has many local branded products of grocery and cloths and it is
successfully selling it. It should also include branded products so that more sales can take
place.

45
6. Expenditure pattern of customers coming in to Big Bazaar?

Below 500 11%


500-1000 16%
1000-1500 22%
1500-2000 22%
More than 2000 29%

EXPENDITURE PATTERN

11%
29%
Below 500
16%
500-1000
1000-1500
1500-2000
More than 2000
22%
22%

ANALYSIS:
We can clearly see from this graph that majority of the customers spend a lot in Big
Bazaar that is 29% of people spend more than Rs.2000 in a single visit to Big Bazaar.
Equal number of people that is 22% of people each spend Rs 1000-1500 and Rs 1500-
2000 respectively in a visit to Big Bazaar.16% of people spend Rs 500-1000 and only
11% of customers are there who spends less than Rs500 in their visit to Big Bazaar.

Interpretation:
From this I interpret that most of the customers purchase goods in bulk which leads them
to spend a lot. Volume sales are high in Big Bazaar. Customers tend to purchase more
goods from Big Bazaar as it provides goods at a discounted rate. Probably those persons
46
who spend more in a visit to Big Bazaar are purchasing on a monthly basis. Those
customers who are spending very less money that is below Rs 500 are mostly coming in
just to move around Big Bazaar and spend time. In the process they used to spend money
on food items and also purchase some products while roaming in it. Impulse buying
behavior of customers comes in to play to a large extent. More discounts shall be
provided to people who does bulk purchase. This will encourage people to purchase more
products.

47
7. Time spent by customers in shopping in Big Bazaar?

Less than half an hour 10%


Half an hour to 1 hour 30%
1 hour to 1 1/2 hours 50%
1 1/2 hours to 2 hours 40%
More than 2 hours 20%

More than 2 hours

1 1/2 hours to 2 hours

1 hour to 1 1/2 hours Series1

Half an hour to 1 hour

Less than half an hour

0% 20% 40% 60%

Analysis:
People spend a lot of time in shopping in Big Bazaar. Majority of the respondents said
that they spend at least 1 hour to 1 ½ hours in Big Bazaar. 40% respondents also said that
they spend 1 ½ hours to 2 hours in their visit to Big Bazaar. Only 10% of people said
that they spend very little time that is less than half an hour in Big Bazaar.

Interpretation:
As per the given data I interpret that customers are very product choosy now a days and
that’s why they spend a lot of time in shopping in Big Bazaar. Probably customers might
even be spending more time in Big Bazaar as it provides a very nice ambience and
atmosphere for the people to shop in. Hence those persons who spend half an hour or less
than half an hour in Big Bazaar are those persons who just come to purchase limited
products and come only because of low pricing of products. People also spend much time
in it but purchase very few goods. The sales personnel should focus on the people who
take long time in shopping and purchases a lot and provide special kind of service to
them as they are the major customers.

48
8. Comparison of footfalls in weekdays and weekends in Big Bazaar?

Weeks days 40%


Weekends 60%

FOOTFALLS

40%
Weeks days
Weekends
60%

Analysis:
The above graph shows that more number of people comes to Big Bazaar in weekends
than that of week days .40% of people visits Big Bazaar in weekdays where as 60% of
people visit Big Bazaar in weekends.

Interpretation:
I can clearly interpret from this that most of the people tend to visit Big Bazaar in
weekends rather than that of week days. There are more footfalls in Big Bazaar in
weekends than that of week days. Though there is not much difference as 40% of people
visit Big Bazaar in week days hence in weekends the footfall increases by 10%. As
people come more in weekends, so Big Bazaar should keep it open for more time in week
ends. The infrastructure can be changed a bit in week ends so that customers can see
more products clearly and can move around comfortably. Hence the crowd is more in
weekends and Big Bazaar should avail more parking spaces for its customers in
weekends. It can make some temporary arrangement for parking every weekend. It
should not spend much money in advertising and displaying of products in weekdays

49
rather it should advertise and display products more in weekends as more number of
people comes in weekends.

9. Customers preference of timing to visit Big Bazaar?

10 A.M. - 6 P.M. 42%


6 P.M. -10P.M. 58%

TIME PREFERENCE

42%
10 A.M. - 6 P.M.
6 P.M. -10P.M.
58%

Analysis:
The above pie chart shows that most of the people prefer to visit Big Bazaar in evening
time than that of the day time. Only 42% of people tend to visit Big Bazaar during day
time while 58% of people tend to visit Big Bazaar during evening time.

Interpretation:
From the above analysis I interpret that evening time is the peak time for Big Bazaar and
day time is the off peak time for Big Bazaar. There is more number of people found in
Big Bazaar during evening time than that of day time. Probably more of products are
being sold during evening time in Big Bazaar than that of day time. Big Bazaar shall

50
provide some special offerings during day time so that more people should come in
during day time. It could offer some special kind of product in daytime which will be not
available during evening time. In this way it will bring in more number of people during
day time for getting the special kind of products but along with that it will be able to sale
other products as people do a lot of impulse buying at Big Bazaar.

10. Comparison of customers purchasing with planned list of products and purchasing
products on a unplanned basis in Big Bazaar?

Yes 80%

No 20%

PLANNED AND UNPLANNED


BUYERS

20%

Yes
No

80%

Analysis:
As shown in the graph, 80% of customers come to Big Bazaar with a planned list of
products. Only 20% of people come in to Big Bazaar without any planned list of products
to be purchased from Big Bazaar.
Interpretation:

51
As per the data obtained from the customers of Big Bazaar I interpret that most of the
customers comes in to Big Bazaar with a planned list of products. Few customers come to
Big Bazaar without any planned list of products and purchases products depending on
their selection. These people basically come to the mall and hence get in to Big Bazaar.
Depending on the product category and brand and quality of products they purchases
goods. Some couples come to mall and go to food bazaar to have food together and to
have chit chat among them. The customer who comes with a planned list of products
purchases more products than that of the customers who comes without any planned list
of products. So Big Bazaar should provide more variety and essential goods so that more
number of people should come in with a planned list of products.

11. Brand preference of customers in Big Bazaar?

Yes 10%
No 50%
Depends on category 40%

BRAND PREFERENCE

10% Yes

40%
No

50% Depends on
category

Analysis:
As seen in the above chart it is clearly known that only 10% of people come in to Big
Bazaar with a list of brands in advance. 50% of people completely deny that they don’t
prepare in list of brand in advance. 40% of people told that they prepare a list of brand
depending on the product category.

52
Interpretation:
From this I interpret that customers don’t opt for much brand preference while
purchasing products in Big Bazaar. A few customers search for brands but depending on
the product category. Customers probably don’t decide for brands on products as there
are not much of known branded products available at Big Bazaar. On product categories
like grocery and clothes, Big Bazaar has many local branded products. Customers
purchase a lot of these as its cheap in price even though its quality is not so good. As
most of the customers belong to lower class and middle class people, they purchase those
local branded products as it gives them value for money.
Different products of the same category have different prices. Quality of products varies
with the price. This enables customization of products for various types of customers.
Customers search for brands mostly in apparel section. Some customers also pre decides
the brand on the local manufactured grocery and food products of Big Bazaar. Big Bazaar
should include more of the branded products in its each category so that customers have
more options to choose among the brands. This will bring in more number of people to
Big Bazaar which will definitely increase the sales.

53
12. Comparison of brand preference on different product in Big Bazaar?

Cloths 40%
Grocery 40%
Gift Items 33%
Electronic Items 25%
Leather Items 2%
Any Other Item 12%

45%
40%
35%
30%
25%
Series1
20%
15%
10%
5%
0%
s

m
m

e
ry
e
s

m
e

It
th

It

ce
It

r
lo

e
It
ic
e

ro

th
C

n
th

t
G

if
ro

O
a

G
e

ct

y
L

n
le

A
E

Analysis:
This graph shows that cloths and grocery are the only two items on which customers
mostly prefer the brands that is 40% each. 33% brand preference is on gift items and 25%
is on electronic items. Brand preference on leather items is 2% and 12% on any other
item.

Interpretation:
From this I interpret that some of the products brand are predecided in advance and for
some of the products customers don’t at all predecide any brand. As per electronic goods
are concerned customers predeide the brand as many branded electronic products are

54
available in Big Bazaar. The customers predecides brands on cloths and grocery most as
Big Bazaar produces much of local brands and also have some well known branded
products of clothes with it like flying machine jeans.

55
13. Mode of payment of customers in Big Bazaar?

Cash Payment 73%


Credit Card 21%
Debit Card 6%

MODE OF PAYMENT

6%

21%
Cash Payment
Credit Card
Debit Card

73%

Analysis:
As per my study is concerned, out of the total respondents 73% of people make cash
payment in Big Bazaar. 21% of them uses credit card as their mode of payment and 6%
of the people makes payment in Big Bazaar through their debit card.

Interpretation:

56
As per the obtained data I interpret that maximum number of people makes cash payment
in Big Bazaar. A fraction of people uses their credit card for payment in Big Bazaar and a
very few people uses their debit card for payment. I can interpret that quick exchange of
money for goods is done in Big Bazaar as most of the people mode of payment is cash
payment. Hence some times Big Bazaar has to wait for a short time period as some of the
customers make their payment through credit and debit card.

57
14. Factors which encourages customers to come in to Big Bazaar?

Price 60%
Service 40%
Ambience 50%
Product Variety 65%
Product Quality 20%
Convenience 35%

70%
60%
50%
40%
Series1
30%
20%
10%
ty

0%
e
li t
e

c
e
e

n
a
c

ri
ce

ic

ie
n

u
a
ie
rv

Q
V
ri

n
P

b
e

ve
ct

ct
m
S

n
u

u
A

o
d

C
ro

ro
P

Analysis:
People are mostly encouraged to come to Big Bazaar because of its cheap price and
availability of variety of products. Around 65% of the total respondent said they are
mostly encouraged to come to Big Bazaar as it has variety options. Even most of the

58
customers said that they get goods there in a discounted price and so they come in to it.
Many customers also said that they feel good about the service and ambience provided by
Big Bazaar. Around 35% of customers also said that convenience is also another factor
which leads them to come to Big Bazaar. Product quality is rated at very low that is only
20% which encourages the customers to come to Big Bazaar.

Interpretation:
From this analysis I interpret that Big Bazaar is a well known for its variety options.
People mostly come to Big Bazaar as they get various kinds of products under one roof.
It is also clearly known that Big Bazaar sales its goods at a discounted price as compared
to the market. Even it provides a good service and ambience to its customers which
encourages them to visit Big Bazaar more and more times. I can also interpret from this
that Big Bazaar has located itself in a good place from where it is able to attract
customers. As a hypermarket which is to be located far off the city, Big Bazaar has
located itself in a good place from where it is convenient for people to visit Big Bazaar.
Big Bazaar should try and produce more qualitative products so that customers can get
more satisfaction and would never think of not doing shopping in Big Bazaar.

59
15. Customers’ mode of transport to Big Bazaar?

Hired Vehicle 10%


Two-wheeler 40%
Four-wheeler 50%
Any Other 0%
MODE OF TRANSPORT

0% 10%

Hired Vechle
Two-wheeler
50%
Four-wheeler
40% Any Other

Analysis:
Around 50% of the total respondents come in to Big Bazaar with their own four
wheelers. The second majority of people consist of people riding two wheeler and
coming in to Big Bazaar. Only 10% of people of the total respondent visits Big Bazaar on
hired vehicles. None of the customers of the total respondent comes in any other mode of
transport.

Interpretation:
From the above data I interpret that there are more number of four wheelers coming
found in Big Bazaar than that of two wheelers. People prefer more to go to Big Bazaar in
four wheelers than that of two wheelers. A few people are found who comes in to Big
Bazaar with a hire vehicle. Probably they might be the tourists.

60
16. Parking space availability in Big Bazaar?

Less than adequate 45%


Adequate 45%
More than adequate 10%

AVAILABILITY OF PARKING SPACE

10%

Less than
adequate
45% Adequate

More than
45%
adequate

Analysis:
As it is shown in pie chart most of the people say Big Bazaar does not provide adequate
parking space. Equal number of people also says that adequate space is provided for
parking Big Bazaar. Only 10% of people say that more than adequate space is available
for parking in Big Bazaar.

Interpretation:
Analyzing the above data, I interpret that customers are not satisfied with the parking
space availability provided by Big Bazaar. Hence it’s a threat for Big Bazaar as it may
loose its customers because of less parking space availability. Even though many

61
customers say adequate space is available for parking in Big Bazaar but also it is a threat
for Big Bazaar as it is seen more number of people are expected to come in to Big
Bazaar. In holidays probably it will be very difficult for customers to park their vehicle in
Big Bazaar.

17. Customers preference towards Kirana Store?

PREFERENCE TOWARDS KIRANA


STORE

15%

Yes
No

85%

Analysis:
Out of my total respondent of 100 customers, 85% of them says they go to their near by
kirana store and 15% said that they don’t at all go to any kirana store. This shows that
majority of people go to kirana store even though they visit Big Bazaar. But some
customers are there who never goes to any kirana store.

Interpretation:
As per the given data I analyze that most number of people tend to purchase goods from
near by kirana store even if they come to Big Bazaar. I can conclude from this that a
kirana store is a competitor of Big Bazaar. Some customers never go for shopping in
kirana store as of it does not have much variety option available with it. Probably they are
more interested in having a shopping experience rather than to just go and purchase
goods from kirana store.

62
18. Comparison of Big Bazaar with any Kirana Store?
Shopping
Price Service Variety Quality Convenience Experience Ambience
Big
Bazaar 70 50 100 40 25 90 95
Kirana
store 30 50 0 60 75 10 5

120
100 100 95
90
80 75
70 Big bazaar
60 60
50 Kirana store
40 40
30 25
20
10 5
0 0
e
er e
nc

ce
ce

xp c
ty

in ve n y
e

E ien

ie
lit
ric

ie

en
vi

a
ar
er
P

bi
Q
V
S

m
pp o n

A
g
S
ho C

Analysis:
The above graph shows the comparison of different factors between Big Bazaar and a
nearby kirana store. 70% of people say Big Bazaar provides goods at a cheaper price as
compared to that of a kirana store. 50% of people say Big Bazaar provides better service
and another 50% of them say kirana store provides better service. Each and every
customer that is 100% agrees that there are more variety of products available at Big
Bazaar than that of kirana store. As per quality of goods is concerned 60% of the
customer say kirana store provides better qualitative products while 40% of the customers
say Big Bazaar also provides qualitative products. 75% people say it is more convenient
for them to go to a kirana store while 25% of them say going to Big Bazaar is more
convenient for them. 90% of respondents said it is a good shopping experience at Big
Bazaar while 105 of them said that they also have a good shopping experience at kirana
store. As per ambience is concerned 95% of customers said Big Bazaar provides much

63
nice ambience than Big Bazaar while 5% of them said that ambience provided by kirana
store is also equivalent to that of Big Bazaar.

Interpretation:

I interpreted from this that a kirana store is one of the competitor of Big Bazaar. It is a
threat for Big Bazaar as some of the attributes of a kirana store provides more satisfaction
to customers. Big Bazaar should try to improve on each of its attributes and out compete
the kirana store so that it can convert the customers of kirana store to be the customers of
Big Bazaar.

64
FINDINGS & ANALYSIS

• It is found that 70% respondents are aware with Big Bazaaar while rest are not
aware.
• It is found that 60% of respondents visit Big Bazaar for shopping, 10% for outing
and 30% visit Big Bazaar for both the purposes.
• It is found that the distribution of income level of customers coming in to Big
Bazaar. Among the 200 respondents 50% of customers are of middle income level
that is between Rs20000 – 60000. Least number of customers visiting Big Bazaar
is the higher income level people that constitute only 5%. The lower income level
of people coming to Big Bazaar constitutes of 20%. 25% of people belong to no
income group which mostly consists of students.
• It is found that 65% of people visit garment outlet in a mall other than that of Big
Bazaar. 30% of people also prefer to visit food court in a mall other than Big
Bazaar. 20% of the people go to footwear outlet in a mall other than Big Bazaar.
20% of people also go to mall for entertainment purpose. Some people that are
10% each also visit gift corner store and jewellery & watches store in a mall other
than Big Bazaar.
• It is found that 70% is highest by the customers followed by clothes rated 60%.
The next highest demand is for food items that is 50%. 25% demand is for leather
items in Big Bazaar. Electronics items hold 15% of demand and gift items and
other items has a demand of only 10% by the customers of Big Bazaar.
• It is found that 29% of people spend more than Rs.2000 in a single visit to Big
Bazaar. Equal number of people that is 22% of people each spend Rs 1000-1500
and Rs 1500-2000 respectively in a visit to Big Bazaar.16% of people spend Rs
500-1000 and only 11% of customers are there who spends less than Rs500 in
their visit to Big Bazaar.
• It is found that majority of the respondents said that they spend at least 1 hour to 1
½ hours in Big Bazaar. 40% respondents also said that they spend 1 ½ hours to 2

65
hours in their visit to Big Bazaar. Only 10% of people said that they spend very
little time that is less than half an hour in Big Bazaar.
• It is found that mainly respondent comes to Big Bazaar in weekends than that of
week days .40% of people visits Big Bazaar in weekdays where as 60% of people
visit Big Bazaar in weekends.
• It is found that most of the people prefer to visit Big Bazaar in evening time than
that of the day time. Only 42% of people tend to visit Big Bazaar during day time
while 58% of people tend to visit Big Bazaar during evening time.
• It is found that 80% of customers come to Big Bazaar with a planned list of
products. Only 20% of people come in to Big Bazaar without any planned list of
products to be purchased from Big Bazaar.
• It is found that 10% of people come in to Big Bazaar with a list of brands in
advance. 50% of people completely deny that they don’t prepare in list of brand in
advance. 40% of people told that they prepare a list of brand depending on the
product category.
• It is found that cloths and grocery are the only two items on which customers
mostly prefer the brands that is 40% each. 33% brand preference is on gift items
and 25% is on electronic items. Brand preference on leather items is 2% and 12%
on any other item.
• It is found that 73% of people make cash payment in Big Bazaar. 21% of them
uses credit card as their mode of payment and 6% of the people makes payment in
Big Bazaar through their debit card.
• It is found that mostly encouraged come to Big Bazaar because of its cheap price
and availability of variety of products. Around 65% of the total respondent said
they are mostly encouraged to come to Big Bazaar as it has variety options. Even
most of the customers said that they get goods there in a discounted price and so
they come in to it. Many customers also said that they feel good about the service
and ambience provided by Big Bazaar. Around 35% of customers also said that
convenience is also another factor which leads them to come to Big Bazaar.
Product quality is rated at very low that is only 20% which encourages the
customers to come to Big Bazaar.
66
• 85% of them says they go to their near by kirana store and 15% said that they
don’t at all go to any kirana store. This shows that majority of people go to kirana
store even though they visit Big Bazaar. But some customers are there who never
goes to any kirana store.
• 70% of people say Big Bazaar provides goods at a cheaper price as compared to
that of a kirana store. 50% of people say Big Bazaar provides better service and
another 50% of them say kirana store provides better service. Each and every
customer that is 100% agrees that there are more variety of products available at
Big Bazaar than that of kirana store. As per quality of goods is concerned 60% of
the customer say kirana store provides better qualitative products while 40% of
the customers say Big Bazaar also provides qualitative products. 75% people say
it is more convenient for them to go to a kirana store while 25% of them say
going to Big Bazaar is more convenient for them. 90% of respondents said it is a
good shopping experience at Big Bazaar while 105 of them said that they also
have a good shopping experience at kirana store. As per ambience is concerned
95% of customers said Big Bazaar provides much nice ambience than Big Bazaar
while 5% of them said that ambience provided by kirana store is also equivalent
to that of Big Bazaar.

67
SWOT ANALYSIS

STRENGTH

 Large variety option


 Cheap price
 Huge customer Base
 Volume sales
 Prime location
 Large floor space allowing for better visual merchandising
 Large area also allows to stock a large variety of products under one roof
 Experienced and competent management
 Highly trained and motivated sales force
 Brand equity
 Large scale operations in various cities throughout the country allows them to
reap the benefits of “economies of scale”

WEAKNESS

 Large scale of operations sometimes acts as a barrier to personalized customer


relations
 Large scale operations lead to reduced flexibility by increasing the amount of
overheads and a huge commitment in terms of fixed costs
 A large organization structure leads to delayed decisions. This can prove fatal
for a business in the dynamic fashion industry. Mumbai, this fact sometimes
results in delayed decisions in adapting to changing market trends.
 Lacks in branded products
 Low in product quality
 Unable to provide enough parking space to its customers

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OPPORTUNITIES

 Apart from the metros, cities like Ahmedabad, Pune, Lucknow, Indore and
Coimbatore have shown substantial retail presence. Most sport modern retail
formats like supermarkets, department stores and specialty chains. These
markets are expected to show exponential growth in the next few years. Thus
Food Bazaar has the opportunity to explore new markets
 According to the Consumer Outlook study, consumers are generally satisfied
with the service that organized retailers extend to them. More importantly,
they are increasingly regarding these organized retailers as providing `value-
for-money’. These findings indicate that large retailers will capture most of
the higher consumer spending
 Increasing penetration of the internet into Indian homes has provided Food
Bazaar Mall to break the geographical barriers and to increase their customer
base. The entry into online retailing, would, in fact, expand the product
categories available to the consumer.
 To open up more and more number of Big Bazaars in different cities of the
country.
 To grab the rural market
 To bring in the customers of other retail outlet by dealing with branded
products.
 Add more products to its product category
THREATS

 The time when retailers had to worry about competition only from their peers
down the street has come to an end. Food Bazaar is now facing increased
competition in the form of international retail chains that are making a beeline
towards the highly potential Indian markets.

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 Moreover many big Indian business houses are also vying a space in the
Indian retail scene.
 Opening up of other discounted stores like Vishal Mega Mart
 Convenience of customers to near by Kirana Stores
 Availability of products in other retail outlets

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Chapter-IV
CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION

It is concluded that Big Bazaar is a major shopping complex for today’s customers. It is a
place where customers find variety of products at a reasonable price. Big Bazaar has a
good reputation of itself in the market. It has positioned itself in the market as a
discounted store. It holds a huge customer base. The majority of customers belong to
middle class family. The youth generation also likes shopping and moving around Big
Bazaar. Volume sales always take place in Big Bazaar. Impulse buying behavior of
customers comes in to play most of the times in Big Bazaar.

Big Bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery,
stationary, food items, electronic items, leather items, watches, jewellery, crockery,
decorative items, sport items, chocolates and many more. It competes with all the
specialty stores of different products which provide goods at a discounted rate all through
the year. It holds a large customer base and it seemed from the study that the customers
are quite satisfied with Big Bazaar. As of now there are 34 Big Bazaars in different cities
of India, it seems that there is a vast growth of Big Bazaar lying as customers demand is
increasing for Big Bazaars.

Big Bazaar is a hypermarket store where varieties of products are being sold on different
product category. It has emerged as a hub of shopping specially for middle class people.

Different types of products starting from a baby food to pizzas all are available under one
roof. In Delhi it is the middle class people who mostly do marketing from Big Bazaar.
Even most of the people do their monthly shopping from Big Bazaar. People not only
visit Big Bazaar to do shopping but also visit for outing purpose as it provides a very nice
ambience to its customers. As people go to malls they just tend to move around Big
Bazaar whether it is for shopping purpose or for outing purpose. Grocery, apparels and
food items are the products which are demanded most by the customers of Delhi in Big

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Bazaar. The major drawback of Big Bazaar is that it lacks in providing enough parking
space for its customers. This may discourage the customers to come to Big Bazaar and
shop as they face difficulty in parking their vehicles. Even though some customers say
that they don’t feel problem in parking their vehicle, it is because of the parking space
available to them by the mall. As it is surveyed it seems that the biggest competitors of
Big Bazaar are the kirana stores and the discounted specialty stores like Vishal mega
mart, Delhi bazaar etc.

RECOMMENDATIONS

• Big Bazaar should provide large parking space for its customers so that they can
easily park their vehicles.

• Big Bazaar should include more of branded products its product category so as to
attract the brand choosy people to come in to Big Bazaar.

• It should make different cash counters for different customers. Cash counter and
credit card payment counter should be placed differently in order to reduce the
rush and save the customer’s time. This will be a kind of motivator for the
customers of Big Bazaar.

• The service of the sales person is needed to be improved. Personal care should be
taken by the sales person for the customers so that the customers feel good.

• During the off peak hour’s Big Bazaar should provide some offers to its
customers so that people would be encouraged to come to Big Bazaar during off
peak hours. The customers who are present in the mall during the off peak hours
of Big Bazaar will definitely go in to Big Bazaar if surprise offers are made at that
time.

• Customer care department is needed to take proper care of customer complaints


and queries. The person sitting at the help desk of Big Bazaar should be able to
provide all necessary information to the customers whenever it is required.

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• The infrastructure is needed to be changed a bit during weekends as heavy crowd
comes in to Big Bazaar during those days.

BIBLIOGRAPHY
BOOKS & JOURNALS
• Gandhi J.C. Marketing & Retail Management, Tata Mc Graw-Hill Publishing
Company Limited, New-Delhi; 2008
• Mehta S. C., Indian Retail Consumers, Tata Mc Graw-Hill Publishing Company
Limited, New-Delhi; 2011
• Bazerman, MH. (2008), Marketing and Retail Research for Consumers. Journal of
Consumer Research, No. 27; Vol. 4; pp 176-182.
• Belch, GE & Belch, MA. (2008), Advertising and Promotion: An Integrated
Marketing and Communications Perspective, No.13; Vol (2); pp 202-205.
• Bradley, F. (2010), Marketing Management: Providing Communicating and
Delivering, No. 22; Vol. (3); pp 162-171.
• Churchill, GA Jr. & Peter, JP. (2007), Marketing. Creating Value for Customers,
No. 32; Vol. (4); pp 192-195.
• Parsons, AG. (2009). Non-Functional Motives for Online Shoppers: Why We
Click? No. 19, Vol. (5), pp. 380-392.

MAGAZINES & NEWSPAPERS


• Business India, 28 March, 2015
• Business Today, 04 April, 2015
• Business World, 30 May, 2015
• The Times of India, Pg.16, June 03, 2015
• The Hindu Business Standard Lines, Pg. 06, July 03, 2015

WEBSITES
• http://www.futuregroup.co.in/retailoutlets/mall/management.html February 25, 2015
• http://www.bigbazaar.com/tgip/noida/retailoutlets/servqual.html March 20, 2015

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• http://www.futuregroup.co.in/consumers/mall-management.html April 03, 2015
• http://www.bigbazaar.com/gurgaon/shoppingmalls/consumers-attitude/organized-
retail.html June 03, 2015
ANNEXURE - QUESTIONNAIRE

Name ___________________________________
Age _____________________Sex __________
Address ___________________________________
Qualification ___________________________________
Profession ___________________________________

1. Are you aware of Big Bazaar?

Yes

No

2. What is purpose behind visiting Big Bazaar?


Shopping
Outing
Both
3. Income wise distribution of customers coming to Big Bazaar?

Higher Income Group


Middle Income Group
Lower Income Group
No Income Group

4. Demand for other retail outlets in a mall with reference to Big Bazaar?
Garment Outlet
Footwear Outlet
Food Court
Entertainment
Gift Corner

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Jewellery Watches Store

75
5. Products mostly purchased by customers in Big Bazaar?

Clothes
Grocery
Food Item
Leather Item
Electronic Item
Gift Item
Any other Item

6. Expenditure pattern of customers coming in to Big Bazaar?

Below 500
500-1000
1000-1500
1500-2000
More than 2000

7. Time spent by customers in shopping in Big Bazaar?


Less than half an hour
Half an hour to 1 hour
1 hour to 1½ hours
1½ hours to 2 hours
Less than half an hour
More than 2 hours
8. Comparison of footfalls in weekdays and weekends in Big Bazaar?

Weeks days

Weekends
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9. Customers preference of timing to visit Big Bazaar?

10 A.M. - 6 P.M.

6 P.M. -10P.M.

10. Comparison of customers purchasing with planned list of products and

purchasing products on a unplanned basis in Big Bazaar?

Yes

No

11. Brand preference of customers in Big Bazaar?

Yes
No
Depends on category

12. Comparison of brand preference on different product in Big Bazaar?


Cloths
Grocery
Gift Items
Electronic Items
Leather Items
Any other items

13. Mode of payment of customers in Big Bazaar?


Cash Payment
Credit Card
Debit Card

14. Factors which encourages customers to come in to Big Bazaar?

Price
Service
Ambience
Product Variety

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Product Quality
Conveyance

15. Customers’ mode of transport to Big Bazaar?


Hired Vehicle
Two-wheeler
Four-wheeler
Any Other
16. Parking space availability in Big Bazaar?
Less than Adequate
Adequate
More than Adequate
17. Customers preference towards Kirana Store?
Yes
No

18. Comparison of Big Bazaar with any Kirana Store?


Shopping
Price Service Variety Quality Convenience Experience Ambience
Big
Bazaar
Kirana
store

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