c



 
 
  



c



  

 !" #



 $

" """ "

%

&' '
(")
* 
)%

c +
, -
  .
. 

c/00123312

 $'

c4)"  

 5* 4 56 4,7

893515: ""5-;$5$#5

 <=>?33:1

133/=00
 


       ,%32@30@1300






This is to certify that the Project titled ³Customer Satisfaction at Big Bazaar´

carried out by Mr. / Ms.Ravindra Kumar Chauhan ( REG No.911240024 )

is a bonafide student of International Institute of Business Studies,

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

the award of Degree of " """ "under Punjab

Technical University, during the year 2009-2011.

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

Asst. Dean Director

VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVV VVVVVVVVV VVVVVVVVV VVVVVVVVV V

V
 V

     ,%32@30@1300



, 



This is to certify that the Project titled³Customer Satisfaction at Big Bazaar´
is a bonafide work carried out by Mr. / Ms.Ravindra Kumar Chauhan in
partial fulfillment for the award of Degree of " """
"under Punjab Technical University, during the year 2009-
2011.

This Project Report has been approved as it satisfies the academic

requirements in respect of project work prescribed for the award of MBA
Degree.

 %4)   

 %(-  


AA
A

DECLARATION

I hereby declared that this project titled ³ Customer Satisfaction at Big

Bazaar ³ , is submitted to the Punjab Technical University as a partial
requirement for the award of Degree of " """
", during the year 2009-2011.

It is the record of an original & independent study carried out by me, under
the able guidance and supervision of ""4)  
of

" """"5 $4 This project
report has not been submitted earlier by me or by anybody else for the
award of any other degree in any University in India or abroad.

Date :08/01/2011

Place :Bangalore Ravindra Kumar Chauhan

 VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVV VVVVVVVVV VVVVVVVVV VVVVVVVVV V

Date:10/08/ 2010

CERTIFICATE

This is to certify that Mr/ Ms.RavindraKumarChauhan of International

Institute of Business Studies, Bangalore, has completed the Project titled
³Customer Satisfaction at Big Bazaar´ under the guidance of Mr. /
Ms.Vasanth Kr Gowda during the year 2009-2011.

During the stay in our organization, Mr. / Ms. Ravindra Kumar Chauhan
was very useful to our organization, with his / her Managerial knowledge &
has successfully completed the dissertation. We wish him / her the best of
luck in all future endeavors.
Future Retail Value Ltd,

Vasanth Kr Gowda

(Sr.Executive HR)

VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVV VVVVVVVVV VVVVVVVVV VVVVVVVVV V

ACKNOWLEDGEMENT

I would like to express my sincere thanks to the Director & Management of

International Institute of Business Studies, Bangalore, for their valuable
guidance & support. I am extremely thankful & grateful to
Prof.)   for his / her constant guidance &
encouragement throughout the study.
I would like to express my sincere thanks & gratitude to Mr. / Ms.Vasanth
Kr Gowda of ( Future Group Big BzaarBngalore), for his / her support &
guidance during my stay in their organization.

I would also like to express my devoted thanks to my beloved parents & my

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

Date :08/01/2011

Place :Bangalore Ravindra KumarChauhan

VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVV VVVVVVVVV VVVVVVVVV VVVVVVVVV V

V
V
V
V
V
V
V
 V

VV  V
V


V VVVVVVVVVVVV VVV V

V

V

V V


V 
V V V


V  
VV
  V V


V 
 VV V V V


V m m
 m   
m   V
mmV


V  m    
  V
m   m V

Ö
V ÷÷
 m
V V


V   V V

V
V

VV
 
 
V
V

V
V

  V

The word "Retail" originates from a French-Italian word. Retailer is someone who cuts
off or sheds a small piece from something. 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 customers on a relatively small
scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental
in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.
 V

  VV V

Indian retail industry is the largest industry in India, contributing to over 13% of the
country's GDP. Organized retail industry in India is expected to rise 35% yearly being driven by
strong income growth, changing lifestyles, and favorable demographic patterns. It is expected
that by 2011-12 modern retail industry in India will be worth US$ 590 billion. It has further been
predicted that the retailing industry in India will amount to US$ 833 billion by 2013 and US$ 1.3
trillion by 2018. 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 huge shopping centers, malls and
sprawling complexes which offer food, shopping, and entertainment all under the same roof.
Indian 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.

In the Indian retailing industry, food is the most dominating sector and is growing at a
rate of 9% annually. The branded food industry is trying to enter the India retail industry and
convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket
consists of non- branded items. Indian retail industry is progressing well and for this to continue
retailers as well as the Indian government will have to make a combined effort. Indian retailing
industry has seen phenomenal growth in the last five years. Organized retailing has finally
emerged from the shadows of unorganized retailing and is contributing significantly to the
growth of Indian retail sector. The ³India Retail Sector Analysis report helps clients to analyze
the opportunities and factors critical to the success of retail industry in India.

Indian retail industry is going through a transition phase. Most of the retailing in our
country is still in the unorganized sector. The spread out of the retails in US and India shows a
wide gap between the two countries. Though retailing in India is undergoing an exponential
growth, the road ahead is full of challenges.

VV  

‡  

"Right Place, Right choice" Location is the most important ingredient for any business
that relies on customers, and is typically the prime consideration in a customers store
choice. Locations decisions are harder to change because retailers have to either make
sustainable investments to buy and develop real estate or commit to long term lease with
developers. When formulating decision about where to locate, the retailer must refer to
the strategic plan:

‡ Investigate alternative trading areas.

‡ Determine the type of desirable store location

‡ Evaluate alternative specific store sites

‡ Y VV
The primary goal of the most retailers is to sell the right kind of merchandise.
Merchandising consists of activities involved in acquiring particular goods and services
and making them available at a place, time and quantity that enable the retailer to reach
its goals. Merchandising is perhaps, the most important function for any retail
organization, as it decides what finally goes on shelf of the store.

‡  VV
Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and
its interaction with other retailing elements. The importance of pricing decisions is
 growing because today's customers are looking for good value when they buy
merchandise and services. Price is the easiest and quickest variable to changeV

‡ V V

"Consumer the prime mover" "Consumer Pull", however, seems to be the most important
driving factor behind the sustenance of the industry. The purchasing power of the
customers has increased to a great extent, which is influencing the retail industry to a
great extent, a variety of other factors also seem to fuel the retailing boom.V

VV
 V

Scale of operations includes all the supply chain activities, which are carried out in the
business. It is one of the challenges that the Indian retailers are facing. The cost of business
operations is very high in India.

!V ã
V ã  V  V

 V

"V!VVV V V# V$% &V '('V (16V 18%V

VV !VV#)&V V V *V 12V 71%V

+VãV!V
V  VV

  VV V

‡ MallsV

‡ ÷randed storesV
 ‡ Specialty stores
‡ Departmental stores
‡ Super markets
‡ Discount stores
‡ Hyper markets
‡ Shopping markets
‡ Convenient stores

‡ Y
The largest form of organized retailing today Located mainly in metro cities, in
proximity to urban outskirts. Ranges from 60,000 sqft to 7,00,000 sq. ft. and above. They lend an
ideal shopping experience with an amalgamation of product, service and entertainment, all under
a common roof. Examples include Shoppers Stop, mega Mart, Pantaloon, Wall mart etc.

‡  V:

Chains such as the ÷angalore based Kids Kemp, the Mumbai books retailer
Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on
specific market segments and have established themselves strongly in their sectors.

‡  V:

As the name suggests, discount stores or factory outlets, offer discounts on the
MRP through selling in bulk reaching economies of scale or excess stock left over at the season.
The product category can range from a variety of perishable/ non perishable goods.

‡  " V

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer
needs. Departmental stores further classified into localized departments such as clothing, toys,
home, groceries etc. Departmental Stores are expected to take over the apparel business from
exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop,
which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across
India and even has its own in store brand for clothes called Stop!.

‡ Y, "-

Large self service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. These stores today contribute
to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to
mini supermarkets typically 1,000 sqft to 2,000 sqft and large supermarkets ranging from of
3,500 sqft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

‡  .  VV

These are relatively small stores (00-2,000 sq. feet located near residential areas.
They stock a limited range of high-turnover convenience products and are usually open for
extended periods during the day, seven days a week. Prices are slightly higher due to the
convenience premix

 VV V V 

India is the country having the most unorganized retail market. Traditionally the retail
business is run by Mom & Pop having Shop in the front & house at the back. More than 99%
retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test
& vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at
the face of customer. Generally the accounts of trading & home are not maintained separately.
Profits were accumulated in slow moving & non-moving stocks which were to become
redundant or consumed in-house. Thus profits were vanished without their knowledge. The
Manufactures were to distribute goods through C&F(Carry and Forward) agents to Distributors
& Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-
users. The merchandise price used to get inflated to a great extent till it reaches from
Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. ÷randing
was not an issue for majority of customers. More than 99% customers are price sensitive & not
quality or ÷rand Sensitive at the same time they are ÷rand conscious also.

Weekly ÷azaar in many small towns was held & almost all the commodities were on the
scene including livestock. ÷argaining was the unwritten law of market. Educational qualification
level of these retailers was always low. Hence market was controlled by handful of distributors
&/or Wholesalers. Virtually there was only one format of retailing & that was mass retail.
Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms
of quality, Styles were on regional basis, community based & truly very low range was available
at any given single place. Almost all the purchases / (buying) by mass population was need
oriented & next turn may be on festivals, Marriages, ÷irthdays & some specific occasions.
Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of
trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes
for occasions is till date is a luxury for majority population except for those living in Metros.

Purchasing power of India urban consumer is very low and that of ÷randed merchandise
in categories like Apparels, Cosmetics, Shoes, Watches, ÷everages, Food, Jewellery, are slowly
seeping into the lifeline of Indian City folks. However electronic & electrical home appliances
do hold appropriate image into the minds of consumers. ÷rand name does matter in these white
goods categories. In the coming times also majority of organized retailers will find it difficult to
keep balance with rest of the unbranded retail market which is very huge. Retailing consists of
those business activities involved in the sale of goods and services to consumers for their
personal, family, or household use. Retailing comprises of four elements customer orientation,
coordinated effort, value-driven, and goal orientation.
+VããV. VV  V (estimated)

.VV V V 

‡ Changing demographics and industry structure

‡ Expanding Computer technology
‡ Emphasis on lower cost and prices
‡ Emphasis on convenience and service
‡ Focus on productivity
‡ Added experimentation
 VV V

"V   - The retailer makes a careful study of the needs of the customer and
attempts to satisfy those needs.

/V  V± The retailer has clear cut goal and devises strategies to achieve those goals.

0V. V - the retailer offers good value to the consumer with merchandise having
the price and quality appropriate for the target market.
  V - Every activity of the firm is aligned to the goal and is designed to
maximize its efficiency and deliver value to the consumer

 !VVV.. V1V  V"V  

Organized retailing in most economies has typically passed through four distinct phases
in its evolution cycle. In the first phase, new entrants create awareness of modern formats and
rise consumer expectations. In the second phase consumers demand modern formats as the
markets develop ± thereby leading to strong growth. As with the life cycle in any industry, the
high rate of growth would lead to a stage where the market would reach maturity and all the
players would strengthen their positions. This will be followed by the final phase where the
market would reach saturation, the growth would be limited and for sustainable growth, retailers
would explore new markets as well as evaluate inorganic opportunities.

/1V+V V  V
 !VV

The growth factors in India organized sector are various but it is mainly due to the fact
that India's economy is booming. Also, the rise in the working population which is young, pay-
packets which are hefty, more nuclear families in urban areas, rise in the number of women
working, more disposable income and customer aspiration, western influences and growth in
expenditure for luxury items. All these are the factors for the growth in Indian organized retail
sector.

According to the Icier report, the retail business in India is estimated to grow at 13%
from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is
expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-
07 to $ (96 billion in 2011-12. With over 1,000 hypermarkets and 3,000 supermarkets projected
to come up by 2011, India will need additional retail space of 700,000,000 sq ft (65,000,000 m2)
as compared to today. Current projections on construction point to a supply of just
200,000,000 sq ft (19,000,000 m2), leaving a gap of 500,000,000 sq ft ((6,000,000 m2) that needs
to be filled, at a cost of US$15±18 billion.
 Many Indian companies have entered the retail industry in India and this is also a
factor in the growth of Indian organized retail sector. Reliance Industries Limited is planning to
invest US$ 6 billion in the organized retail sector in I India by opening 1500 supermarkets and
1000 hypermarkets. ÷harti Telecoms is planning a joint venture worth £ 750 million with Tesco
a global retail giant. Pantaloons are planning to invest US$ 1 billion in order to increase its retail
space to 30 million square feet. Such huge investment is also a factor in the growth of the
organized retail sector in India.

The world's largest retailer by sales, Wal-Mart Stores Inc and Sunil Mittal's ÷harti
Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15
cash-and-carry facilities over seven years, Carrefour the world¶s second largest retailer by sales,
is planning to setup two business entities in the country one for its cash-and-carry business and
the other a master franchisee which will lend its banner, technical services and know how to an
Indian company for direct-to-consumer retail. The world¶s fifth largest retailer by sales, Costco
Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to
India and waiting for the right opportunity. Tesco Plc., plans to set up shop in India with a
wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its
hypermarket business. The factors for growth in Indian organized retail sector are many and
that¶s the reason behind its massive growth, but for this to continue both the Indian retailers and
the government will have to work together.

  VV
 V
 V

+Vã'V  VV

 !VV

  V
 !VV2V" V VV

The Indian organized retail sector'simpact changed the lifestyle of the Indian consumers
drastically. The evident increase in consumerist activity is colossal which has already chipped
out a money making recess for the Indian organized retail sector. With the onset of a globalized
economy in India, the Indian consumer's psyche has been changed. People have become aware of
the value of money.V

Now a days the Indianconsumers are well versed with the concepts about quality of
products & services. These demands are the visible impacts of the Indian organized retail sector.
Since the liberalization policy of 1990, the Indian economy, and its consumers are getting whiff
of the latest national & international products with the help of print & electronic media. The
social changes with the rapid economic growth due to trained personnel¶s, fast modernization;
enhanced availableness of retail space is the positive effects of Liberalization.

V1VVV !VV V V:-

‡ Increase in per capita income which in turn increases the household consumption

‡ Demographical changes and improvements in the standard of living Change in patterns of

consumption and availability of low-cost consumer credit

‡ Improvements in infrastructure and enhanced availability of retail space

‡ Entry to various sources of financing

The non-food sector, segments comprising apparel, accessories, fashion, and lifestyle felt
the significant change with the emergence of new stores formats like convenience stores, mini
Marts, mini supermarkets, large supermarkets, and hyper marts. Even food retailing has became
an important retail business in the national arena, with large format retail stores, establishing
stores all over India. With the entry of packaged foods like MTR, ITC Ashirbad, fast foods
chains like McDonald's, KFC, beverage parlors¶ like Nescafe, Tata Tea, Café Coffee and ÷arista,
the Indian food habits has been altered. These stores have earned the reputation of being 'super
saver locations'.

India will be a unique busines arena in whole of the global economy, for the social and
economic parameters would overrule the big bang of the vivid competition. Previously mastered
by the unorganized retail sector, India opened up late as an economy in 1990 until then the idea
of retail formats were spread by the government.

" " V/  V%V V

 !VVV

Lots of employment generation by Indian Organized Retail Sector in the near future.
India is going through a radical economic change. Though it is very infant stage, people can feel
the climate is changing. The unorganized retailer take the lion's share in the Indian retail sector,
but the organized retailers are growing at a good pace, and promise an increase of proportion of
by 2016. This is to be the largest sector after the agricultural sector. The increase in the number
of consumers twinned with the introduction of organized sector has brought numerous corporate
investments in retail sector. The entry of super markets, enormous departmental stores, and
shopping malls has encouraged the retailers to look at new business plans of expansion. An
economic growth on a monumental scale is offered by the Indian retail sector, equally in the
national and international market which in turn will generate a huge source of employment and a
variety of options for the consumers. The Ernst & Young's report 'The Great Indian Retail Story',
anticipates that the Indian retail sector would come up with 2 million employment opportunities
within the year 2010.V

3 VVV "V1:- V

‡ ÷etter quality products and services would lead to better competition

‡ More exports bring more foreign direct investments

‡ Organized Indian retail sector would encourage tourism

‡ Along with the employment boom there would be a vast development in the expertise of
the human resource

‡ There would remain future scope for improvements in agriculture, small, and medium
scaled with the help of the Indian retail sector

The present employment in the retail business is nearly ( crores and around 20 crores
depend on this sector. There is a scope of better exposure to the international standards with the
entry of transnational companies, which in turn is encouraging more & more retailmanagement
programs to open up and help bridging the gap of supply & demand of talented professionals for
management.

V
 VVV  VVY-:

The scope of the Indian retail market is immense for this sector is poised for the highest
growth in the next 5 years. The Indian retail industry contributes 13% of the country¶s GDP in
the Indian retail market the scope for growth can be seen from the fact that it is expected to rise
to US$ 590 billion in 2011-12 from US$ 309 billion in 2006-07.

The organized retailing sector in India was only 7% in 2008 and is expected to rise to 25-
30% by the year 2016. There are under construction at present around 325 departmental stores,
300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth
in the Indian retail market. The growth of scope in the Indian retail market is mainly due to the
change in the consumer¶s behavior. For the new generation have preference towards luxury
commodities which have been due to the strong increase in income, changing lifestyle and
demographic patterns which are favorable. The scope of the Indian retail market has been seen
by many retail giants and that¶s the reason that many new players are entering the India retail
industry

V
V
V
V
V

V
V
 ‘
VV

V V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V

V V
V

V
The title of the research project is:

‘
V  V VV 
V

V
 V

What is effectiveness of Retailing Mix at ÷ig ÷azaar leading to Customer Satisfaction?

!"V
V# $%V



V $%V

‡ To identify performance of store operations.

‡ To understanding the buying ÷ehavior at ÷iz ÷azar

‡ To analyze how the merchandising mix influence the customer satisfaction level.


V $%V

‡ To understand the quality of service maintained in the store.

‡ To determine the performance of sales persons in the store.

‡ To find out reasons of dis-satisfaction.

‡ To find out which means of communication plays a vital role to persuade customer.

 VVV
V The study makes an effort to ascertain the satisfaction level of customers from the store
environment and analyze the impact of retailing mix on the customer satisfaction level, and to
improve the store environment to increase the sales and to attract the customers.

The company can come up to the expectation only by finding out the problem that
customers are facing during their purchase from the store. The subject has been taken for the
research as it plays key role in success of retail sector. As long as the company is able to satisfy
its customer, customer will remain in the bracket of loyal customer. This study helps to improve
the environment of the store to reach the customer satisfaction level and improve the
merchandising in ÷ig ÷azaar.

# $%VV
VV

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden and which
has not been discovered as yet. Though each research study has its own specific purpose, we may
think of research objectives as falling into a number of following broad groupings:

‡ To gain familiarity with a phenomenon or to achieve new insights into it (studies

with this object in view are termed as exploratory or formulative research
studies);
‡ To portray accurately the characteristics of a particular individual, situation or a
group (studies with this object in view are known as descriptive research
studies);
‡ To determine the frequency with which something occurs or with which it is
associated with something else (studies with this object in view are known as
diagnostic research studies);


V&V
 Research design is an arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to research purpose with an economy in procedure.
Research design is needed because it facilitates the smooth ailing of the various research
operations, thereby making research efficient possible yielding maximal information with
minimal expenditure. Research design used in this project is Single Cross-sectional design where
one sample is drawn from a population of interest. In this research design a cross sectional study
is concerned with a sample of elements from a given population. Data on a number of
characteristics from the sample elements are collected and analyzed.

'VV
V

('

V

V The research is an exploratory when; one is seeking insight to general
nature of the problem, the possible alternatives and relevant variables that need to be considered.
The methods are flexible, unstructured and qualitative.V

&
'%V

It provides an accurate position of a particular aspect of the market
environment. The purpose of descriptive research is together a quantified measurement of a
specific reaction. It is structured. Most of the data that we needed are gathered in some form of
direct or indirect question which further will depend upon:

‡ Nature of the question

‡ Time frame of study

‡ Funds available

‡ Kinds of respondentsV

This project is totally based on survey of the market i.e. people and a lot of research on the web,
so for that a DESCRIPTIVE type of research design was used. Descriptive research provides an
accurate position of a particular aspect of the market condition. The purpose of this research is
together quantified measurement of a specific type of reaction. It is a structure most of the data
that we collected from the field are gathered in some form of direct or indirect question.

&  V‘V V

The "V are those, which are collected afresh and for first time and thus happen to be
original in character.

The   are those which have been collected by someone else and which have already
been passed through statistical process.

Data has been collected by the researcher by "V  such as questionnaire and
personnel interview. It included 20 questions and 100 customers were given the questionnaire
and response was taken from them. Charts and graphs will be used for presentation of data for
easy understanding and interpretation.

&  V‘V)

V

‡ ´uestionnaires
‡ Personal Interviews.
&VV* 
VV

While designing the ´uestionnaires certain things were kept in mind such as simplicity, length
and clarity.V


 V)
%+VV

Personal interview is mostly commonly used method of data collection. Two purposive
communications between interviewer (researcher) and the respondent (subject) aimed at
obtaining and recording information pertinent to the subject matter of study. The interviewer
resents oral, verbal and written stimuli and receives oral resonances.

%VV.

.V: ³‘
V

 VV V Ô.

" V .: ÷ig ÷azaar Store

"  V Y: Non-probability sampling was used .Non-probability sampling is that

sampling procedure which does not afford any basis for estimating probability that each item in
population has being included in the sample. Under non-probability sampling organizers of
enquiry purposely select particular unit of universe for constituting a sample on the basis of the
small mass that they so select out of huge one will be typical or representative of the whole.
Adequate consideration was taken to bring a heterogeneous group in terms of age, income,
occupation etc. to make the results credible

" V!: 100 Respondents.

 V 4V

": The survey of 100 respondents was finished in two months.

  V+":

The questions are a mix of open-ended, close-ended questions, binary, ranking and multiple
choice questions. They have been so inserted into the questionnaire, to get the appropriate
response for a particular situation.

L VVVV

‡ Time Constraint: Analysis pertaining to project title and the field survey has
to be done in a span of two months. This may limit the scope of the survey.

‡ ÷iasness: The respondents may give a biased view.

‡ Some respondents refuse to co-operate.

‡ Some respondents replied half heartedly.

‡ Some respondents gave incomplete information.

V

V'V
.1VVV
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
 V
V
.1VVV
V

VY5VV

The retail mix is the combination of factors retail used to satisfied customer needs and
influences their purchase decision. It¶s include the type of merchandise and services offered,
merchandise pricing, advertising, promotional programs store design merchandise display,
assistance to customer provided by salespeople, and convenience of the store¶s location.V

‡ Retail mix is the term used to describe the various elements and methods required to
formulate and execute retail marketing strategy.
‡ Retail managers must determine the optimum mix of retailing activities and coordinate
the elements of the mix.
‡ The aim of such coordination is for each store to have a distinct retail image in consumers
mind.
‡ The mix may vary greatly according to the type of the retailer is in, and the type of
product/services.
While many elements may make up a firm¶s retail mix, the essential elements may include:
‡ Store location,
‡ merchandise assortments
‡ Store ambience,
‡ customer service,
‡ price,
‡ Communication with customer
‡ Personal selling
‡ Store image
‡ Store design
‡ Sales incentives
 ‡ People
‡ Process
‡ Physical evidence
V
V
V
V V
"  VVV"5V
‡ Place
‡ Product
‡ Price
‡ Promotion
‡ People
‡ Process
‡ Physical Environment
V" V
"  VVVY5V
V V

‡ V#V &V ‡ V#" &V

‡ Target market
‡ Channel structure
‡ Channel management
‡ Retailer image Retail logistics
â Retail distributionV
‡ Product development
‡ Product management
‡ Product features and benefits
‡ ÷randing
‡ Packaging

V
V V

‡ VV ‡ " VV
‡ Costs
‡ Developing promotional mixes
‡ Profitability
 ‡ Value for money ‡ Advertising management
‡ Competitiveness ‡ Sales promotion
‡ Incentives ‡ Sales management
‡ ´uality ‡ Public relations
‡ Status ‡ Direct marketing
‡ After-sales services V

V
V V

‡  V" VV ‡ V" V

‡ Staff capability ‡ Order processing

‡ Efficiency ‡ Database management
‡ Availability ‡ Service delivery
‡ Effectiveness ‡ ´ueuing system
‡ Customer interaction â StandardizationV
‡ Internal marketing
V
V
V"5V   V
Retail mix plan consists of:
‡ Setting objectives
‡ Systematic way of identifying a range of options.
‡ Formulation of plans for achieving goals
‡ Logical sequence of retailing activities.
"  VVV"5V   V
‡ Hostile and complex retail environment
‡ External and internal retail organisation factors interact for
‡ Maximising revenue
‡ Maximising profit
‡ Maximising return on investment
 ‡ Minimising costs
‡ Each element has conflicting needs
‡ All these variables interact
‡ All these variables result in optimum compromise.
 VV   V
 V1 V V
Retail management sets goals and plans for all levels of management.
3"V V V
Various units prepare own goals and plans sent up for approval. It is the effective blending of all
the elements of retail mix activities within the retail organization that determines the success of
retail management. Discuss this statement and explain with retail examples how the elements of
retail mix could be blended to ensure the success of retail operation.

 V

Retailing is the sale of goods and services to ultimate consumers for personal, non-
business use. Any institution may engage in retailing, but a firm engage primarily in retailing is
called a retailer. Retailers serve as purchasing agents for consumer and as sales specialists for
producers and wholesaling middleman. They perform many specific activities such as
anticipating consumers' wants, developing product assortments and financing.Retailers may be
classified by form of ownership and key marketing strategies. Also, types of retailers
distinguished according to product assortment, price and customer service levels. Mature
institutions such as department stores, discount houses and super markets face strong challenges
from new competitors, particularly chain stores or multiple shops in various product categories.
Five major forms of non store retailing are Direct selling, Telemarketing, Automatic vending, On
line retailing and Direct marketing .Each type has advantages as well as drawbacks.V

VY- VY5V

Whatever is from of ownership, a retailer must develop marketing mix strategies to succeed in its
chosen target markets. In retailing, the marketing mix emphasizes product assortment, price,
location, promotion and customer services designed to aid in the sale of a product. They include
credit, delivery, gift wrapping, product installation, merchandise returns, store hours, parking
and- very important personal service. Stores of different sizes face distinct challenges and
opportunities. ÷uying, Promotion, Staffing and expense control are influenced significantly by
whether store's sales volume is large or small. Size of a retail business creates certain meritsand
demerits. Considering these factors, large stores ordinarily but not always have a competitive
advantage over small stores.

" .V. V1V V VVV+V

Another competitive advantage of retailers will be how they create physical facilities
which represent the distribution element of a retailer's marketing mix. Some firms engage in non-
store retailing by selling on hire or through catalogs or door to door, for example-but many more
firms rely on retail stores. Firms that operate retail stores must consider four aspects of physical
facilities.

 V

It is frequently stated that there are three keys to success in retailing: Location, Location,
Location! Although overstated, this axiom does suggest the importance that retailers attach to
location. Thus a stores site should be the first decision made about facilities. Considerations such
as surrounding population, traffic and cost determine where a store should be located.

!V

This factor means the total square footage of the physical store, not the magnitude of the
firm operating the store. These are much different factors. A firm may be quite large with respect
to total sales, but each of its outlets may be only several thousand square feet in size.

 V

This factor refers to a stores appearance, both interior and exterior over its competitor.
V

V

The amount of space allocated to various product lines, specific locations of products and
a floor plan of display tables and racks comprise the store's layout. As would be expected, the
location, size, design and layout of retail stores are based on where consumers live and how they
like to go about their shopping. Consequently, the bulk of retail sales occur in urban, rather than
rural, areas. And suburban shopping areas have become more and more popular, where as many
down town areas have declined.

 V " V  VV

The first part in competitor analysis is to determine how competitors are attempting to
achieve their objectives. This question is addressed by examining their past and current
marketing strategies.

Y- VV

Many authors have attempted to explain the concept of strategy. At the retail level, a
marketing strategy can be thought of three major components: target selection of customers, core
strategy (i.e. positioning and differential advantage), and implementation (i.e. supporting
marketing mix). The first major component is the description of the market segment(s) to which
competing brands are being marketed. Market segments can be described in various ways. Since
few brands are truly mass marketed, the key is to determine which group each competitor has
targeted. The second strategy component is what is called the core strategy. This is the basis on
which the rival is competing, that is its key claimed differential advantage(s).Differential
advantage is a critical component of strategy because it usually forms the basic selling
proposition around which the brand's communications are formed. It is also called the brand's
positioning. The final strategy component of competitors must be assessed in the supporting
marketing mix. The mix provides insight into the basic strategy of the competitor and specific
tactical decisions. These decisions are what customers actually see in the market place. In fact,
customers are exposed to price, advertising, promotion and other marketing mix elements.
V

Y- V . " V

To the company's marketers falls the major responsibility for identifying major changes
in the environment. The retail environment, in particular is constantly spinning out new
opportunities, in bad as well as in good years. The general marketing environment also spins out
new threats-such as an energy crisis, a sharp rise in interest rates, a deep recession-and firms find
their markets collapsing. Recent times have been marked by many sudden changes in the
marketing environment, leading Drucker to dub it an Age of Discontinuity and Toffler to
describe it as a time of Future Shock. Retail marketers need to continuously monitor the
changing scene. They must use their intelligence and marketing research to track the changing
environment. ÷y erecting early warning systems, retailers will be able to revise marketing
strategies in time to meet new challenges and opportunities in the environment. It consists of the
external actors and forces that affect the retailer¶s ability to develop and maintain successful
transactions and relationships with its target customers. We can distinguish between the retailers'
micro environment and macro environment. The micro environment consists of the actors in the
retailer's immediate achievement that affects its ability to serve its markets: Suppliers,
intermediaries, customers, competitors and publics. The macro environment consists of legal,
social, economic and technological forces.

V V VV

Retailers want to locate their stores in the best place possible. The best place possible will
vary from retailer to retailer depending on the industry type, type of product, competition, and
other market factors. ÷asically a retail store has to located where the market opportunities are at
optimal levels. There are basic guidelines that most retailers examine before choosing a new
location. First, the retailer must select a country or region and then define the boundaries of the
trade area and evaluate its population characteristics against the retailers target market. The
buying power of the area must be considered along with its market and sales potential. The size,
location, and type of competition must also be taken into account. The local legal and political
environment must be examined along with the leasing costs and occupancy rates. The actual
physical features of the location ± such as available space, traffic and access to the site, and
surrounding buildings ± play a role in the selection process. Retailers possess many tools to help
in the site selection decision. Reilly¶s law and Huff¶s model can aid in defining the trade area.
Market segmentation and demographic segmentation provides clues to population characteristics.
The buying power index and effective buying income suggest strength of the economic base
while the index of retail saturation offers a benchmark for market comparison. Changes in
consumer lifestyle will require new strategies for selecting retailing locations, such as the
increasing use of convenience oriented sites, the integration of food and non-food retailing, and
the placement of retail merchandising in amusement parks. There a numerous kind of retail
stores to choose from as well. Most potential sites fall in to one of these categories: business
districts, shopping canters, and freestanding locations. There are specific advantages and
disadvantages for each type of location. The bottom line in retail site selection should be to
choose a location that will fit both today¶s and tomorrow¶s needs. The layout and design of a
retail store communicate a significant amount of information about the retailer to the consumer.
The architectural character of the store, building a new location, renovating existing facilities,
exterior design, interior design the modern self layout and the image of the store are the key
issues in designing a layout for a store.

Y VY " V

Merchandise management can be termed as the analysis, planning, acquisition, handling

and control of the merchandise investments of a retail operation. The process of merchandise
management includes the developing of strategies to ensure that the right product is bought at the
right price and available at the right place, at the right time, in the right amount, in order to
satisfy the needs of the target customer. No one in retail can completely avoid any contact with
merchandising activities. Merchandising is the day-to-day business of all retailers. As inventory
is sold, new stock needs to be purchased, displayed and sold. Hence, merchandising is often said
to be at the core of retail management. Merchandising traces its growth to the rise of organized
retail in the world. Initially, as the retailers operated only one or two stores, the function of
buying the merchandise, pricing it, etc., were much simpler. In many cases, the retailer did it
himself. However, as retailers started adding stores and categories, the workload on the buyers
increased significantly. Often, buyers had little information or time and they ended up using
approximations based on sales volumes, to allocate merchandise between stores. This sometimes,
resulted in stores exchanging merchandise among them!

In order to overcome this limitation, the function of a planner came into being. The
planner¶s job was to act as a link between the stores and the buyer. The de-linking of the function
of planning and buying allowed better interaction with the stores. Planners were able to devote
more time to collecting and studying store level data, the buyers on the other hand, were able to
spend more time with the vendors.

" .VV

Given widespread availability of the same brands, retailers have to cope with the
phenomenon of discounts. The retailers themselves dilute the strength of the retail market. With
promotions becoming the order of the day, they have entered into price wars against each other.
µUp to 50 percent off¶ sales and µTwo for one¶ price offers have now become commonplace even
at the top retail outlets across our country. Every season every festival has more price cuts. The
discounted buying has become an annual market strategy rather than a mere sales promotion for
a few weeks. Deep price cuts may not be the answer to maintain their relevance against the small
retailers nor does it augur well for the brand building of the store.

V
V

Y6V V
‡   VV

It is headquartered in Mumbai with (50 stores across the country employing more than
18,000 people. It can boast of launching the first hypermarket ÷ig ÷azaar in India in 2001. An
all-India retail space is of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not
only the largest retailer in India with a turnover of over Rs. 20 billion but is present across most
retail segments - Food & grocery ( V V V ), Home solutions (V

  VV  ), consumer electronics (), shoes (
V

), ÷ooks: music
& gifts (), Health & ÷eauty care services (V  and  village in the pipeline),
e-tailing (  ), entertainment (  V.) One of their recent innovations include
e-commerce¶ hybrid format of ¶small¶ shops , the area for these stores will be 150 sq. ft. fitted
with (0 digital screens. Customers will be encouraged to browse through the entire range of
products on digital screen. They will be able to place the order, the delivery of which will be
arranged by the shop to their homes within a few hours.

‡ V6V/

They forayed into retail with Shopper¶s Stop, India¶s first departmental store in 2001. It is the
only retailer from India to become a member of the prestigious Intercontinental Group of
Departmental Stores (IGDS). They have signed 50:50 joint venture with the Nuance Group for
Airport Retailing. Shoppers Stop has 7, 52, 00 sqft of retail space with a turnover of Rs 6.75
billion. The first Hypercity opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking
gross sales of Rs. 1 bn in its first year. Crossword brand of book stores, Homes stop a store for
home solutions, Mothercare a concept stocking merchandise related to childcare are also owned
by them. Recently, Raheja¶s have signed MoU with the Home Retail Group of UK to enter into a
franchise arrangement for the Argos formats of catalogue & internet retailing. The group has
announced plans to establish a network of 55 hypermarkets across India with sales expected to
cross the US$100 million mark by 2010.
 ‡ V V

Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a
lifestyle retail chain and Star India ÷azaar - a hypermarket with a large assortment of products at
the lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent
has more than ( lakh sq. ft. space across the country. Westside registered a turnover of Rs 3.58
mn in 2006. Tata¶s has also formed a subsidiary named Infiniti retail which consists of Croma, a
consumer electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of September
2007. Another subsidiary, Titan Industries, owns brands like ³TitanÔ, the watch of India has 200
exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their
combined turnover is Rs 6.55 billion.Trent plans to open 27 more stores across its retail formats
adding 1.5 mnsqft of space in the next 12 DLF malls.

‡ 378"

Their plans include US$ 7 bn investment in creating retail network in the country including
100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint
venture agreement with Walmart. Wal-Mart will do the cash & carry while ÷harti will do the
front-end.

‡  

India¶s most ambitious retail plans are by reliance, with investments to the tune of Rs.
30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn)
by 2009-10. There are already more than 300 Reliance Fresh stores and the first Reliance Mart
Hypermart has opened in Ahmedabad. The next ones are slated to open at Jamnagar, followed by
marts in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana.

‡ 0V3V/

They have a strong presence in apparel retailing through Madura garments which is
subsidiary of Aditya ÷irla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen
Solly, Peter England, Trouser town. In other segments of retail, AV ÷irla Group has announced
investment plans of Rs 8000 - 9000 crores in the first 3 years till 2010. The acquisition of
Trinethra (food & grocery) chain in the south has moved their tally to (00 stores in the country.
Their ³MoreÔ range of 15 supermarkets are slated to open at Nashik, Pune and other tier II cities
in Western India in 2007.

ãV+  VV V

Retailers play a significant role as a conduit between manufactures, wholesalers, suppliers,

and consumers. In this context, they perform various functions like storing, breaking bulk,
holding stock, as a channel of communication, storage, advertising, and certain additional
services.

 V

Manufacturers usually make one or a variety of products and would like to sell their
inventory to a few buyers to reduce costs. Final consumers, in contrast, prefer a large variety of
goods and services to choose from and usually buy them in small quantities. Retailers are able to
balance the demands of both sides, by collecting an assortment of goods from different sources,
buying them in sufficiently large quantities, and selling them to consumers in small units.

The above process is referred to as the storing process. Through this process, retailers
undertake activities and perform functions that add to the value of the products and services sold
to the consumer. Supermarkets in the US offer, on an average, 15,000 different items from 500
companies. Customers are able to choose from a wide range of designs, sizes, and brands from
one location. If each manufacturer had a separate store for its own products, customers would
have to visit several stores to complete their shopping. While all the retailers offer an assortment,
they specialize in types of assortment offered and the market to which the offering is made.
Westside provides clothing and accessories, while a chain like nil irises specializes in food and
bakery items. Shoppers stop targets the elite urban class, while pantaloons is targeted at the
middle class.

3- V%-V
 ÷reaking bulk is another function performed by retailing. The word retailing is derived
from the French word retailer, meaning to cut a piece of. To reduce transportation costs,
manufacturers and wholesalers typically ship range cartons of the products, which are then
tailored by the retailers into smaller quantities to meet individual¶s consumptions needs.

 V-V

Retailers also offer the service of holding stock for the manufacturers. Retailers maintain
an inventory that allows for instant availability of the products to the consumers. It helps to keep
prices stable and enables the manufacturer to regulate production. Consumers can keep a small
stock of products at home as they know that this can be replenished by their retailer and can save
on inventory carrying costs.

 V.

Retailers ease the change in ownership of merchandise by providing services that make it
convenient to buy and use products. Providing products guarantees, after-sales services and
dealing with consumer complaints are some of the services that add value to the actual product at
the retailers end. Retailers also offer credit and hire- purchase facilities to the customers to
enable them to buy a product now and pay for it later. Retailers fill orders, promptly process,
deliver and install products. Salespeople are also employed by retailers to answer queries and
provide additional information about the displayed products. V

V9V

VVV "  V
V

V
 V

VVV "  V

Pantaloon Retail India Ltd (PRIL) has emerged as the leading retailer in India with its chain of
Pantaloon, ÷ig ÷azaar and Food ÷azaar 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 back, PRIL has demonstrated a consistent track record of profitable growth.V

"  VV

PRIL has chalked out an aggressive expansion plan to increase its retail space to over
17,(0,000sq.ft. over the next two years. Space for additional ( Pantaloon¶s, 11÷ig ÷azaars and 2
Food ÷azaar¶s has already been finalized, and these would be Operational over the next two
years. PRIL aims to set up over 30 Food ÷azaar¶s and is scouting for 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 µCentral¶. The format would be on the
lines of a Selfridhes in London or a Central Mall in ÷angkok. Two malls of 100,000 and 2(0,000
sq.ft. are being set up in ÷angalore and Hyderabad respectively.

‡ .VV V V1V V %V."V1

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 (0% in ÷ig ÷azaar) 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.
 ‡ +V V.V V V1 V%V.V" .V

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 and gives a competitive edge in terms of speed of delivery;
lower inventory carrying costs and better realizations. Also, large part of PRIL¶s apparel
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,
÷are, 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. Other initiatives such as faster turnover of stocks by
introducing 6 seasons in a year (against 2 earlier) has helped in bringing down inventory levels
and at the same time providing wider choice to customer and improving frequency of customer
visits.

‡
V%VV% V"7V" VV1VV

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.

‡ 1V VV V ..V7 VVV1

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.
÷esides, PRIL has tied up with Shop-in-Shop partners in its ÷ig ÷azaar 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. ÷y 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 199(). PRIL will be adding new product categories to its
business in both Pantaloons as well as ÷ig ÷azaar 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.

‡ "  V"V%V V1V VV"6V

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
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 Menz
Wear Private Limited under the stewardship of Mr. Kishore ÷iyani. It was converted into a
public limited company in September, 1991. The company sold branded garments under
Pantaloon, ÷are 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.V

V
  VV# &VVV "  V  

3 V  V

Pantaloon Retail (India) Ltd. The Company's principal activity is to operate chain retails stores in
names of ÷ig ÷azaar, Food ÷azaar, Central and Pantaloons. The ÷ig ÷azaar 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 ÷azaar. The Company's Food ÷azaar 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. V

%V  VV# &VVV

Pantaloon Retail (India) Limited is a leading retailer with a turnover of Rs. 1088 crores
for the financial year ending June 2008. The company is headquartered in Mumbai and has a
presence in Lifestyle Retailingthrough 18 Pantaloons Stores, 3 Central Malls in ÷angalore,
Hyderabad and Pune. In Value Retailingit is present through 2( ÷ig ÷azaar hypermarkets,
38 Food ÷azaars and 2 Fashion Stations. PRIL has a national presence with 2.6 million square
feet of retail space across 2( cities.
  V+ V%V  V

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.

3V3!VVV-  V

÷ig 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 ÷ig ÷azaar. 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 ÷ig ÷azaar to that of a local
suburban train.

Food ÷azaar¶s core concept is to create a blend of a typical Indian ÷azaar and
International supermarket atmosphere with the objective of giving the customer all the
advantages of ´uality, 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 (2 varieties of rice on sale), Food ÷azaar has proved
to be a hit with customers all over the country.V

V
V
V

V  9VV

V V V

 V VV +V V

1 VV VV3 V# 
&V

+ VV ã V

V4VV :1V;VY"%V

 V V VV

8%V 

 V

V V VV- V

+V'V%V3V3!V

3V3!V

÷ig ÷azaar 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 many
Indian cities and small towns. ÷ig ÷azaar 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.

VV  V<V

82V  V V V V V 3V 3!=V

1,70,000 products at 6- 60 % discount.
At ÷ig ÷azaar, you will get: A wide range of products at 6 ± 60 % lower than the corresponding
market price, coupled with an international shopping experience.V

''VV.%V V3V%!V
Apparel and Accessories for Men, Women and Children.V

÷aby Accessories.Toys
Cosmetics Home TextilesLuggage
Crockery Home NeedsLinens
Dress Materials Suiting & ShirtingHousehold AppliancesSarees
Electrical AccessoriesHousehold PlasticsStationery
Electronics Hardware Utensils & Utilities

Footwear V Home Decor V V

V
 +V 3!>V core concept is to create a blend of a typical Indian ÷azaar 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. 2+

V 3?2 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 sqft to 15,000 sq. ft. in Mumbai (two stores), Kolkata, ÷angalore &
Hyderabad, it is opening more stores at Gurgaon (Delhi), New ÷ombay & Nagpur. It currently
caters to over 1.2 million customers every day across ( outlets in India and is soon set to expand
and double this figure across 12 outlets all over the country by June 2009. Food ÷azaar 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
³MandiÔ 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 ÷azaar:
@%/  -  A. This positioning platform of Food ÷azaar is evident from
the higher discounts and the wholesale price-points which are below MRP.

Food ÷azaar represents the company¶s entry into food retail and is targeted across all
classes of population, tea, sugar, pulses, spices, 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. Food ÷azaar replicates a local µmandi¶, to provide
the much important µtouch & feel¶ factor which Indian housewives are used to in the local
bazaar. Food ÷azaar has over 50,000 stock keeping units which cover grocery, FMCG products,
milk products, juices, spices, ready to eat foods etc.

/
V0
V VY
V
V

/ V0 VV

Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in
the most profitable manner

/ VY VV

‡ We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to economic
development.

‡ We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments ± for classes and for masses.

‡ We shall infuse Indian brands with confidence and renewed ambition.

‡ We shall be efficient, cost- conscious and committed to quality in whatever we do.

‡ We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.

VVV

V0V

‡ Indianness: confidence in ourselves.

‡ Leadership: to be a leader, both in thought and business.

‡ Respect & Humility: to respect every individual and be humble in our conduct.

‡ Introspection: leading to purposeful thinking.

‡ Openness: to be open and receptive to new ideas, knowledge and information.

‡ Valuing and Nurturing Relationships: to build long term relationships.

‡ Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

‡ Adaptability: to be flexible and adaptable, to meet challenges.

‡ Flow: to respect and understand the universal laws of nature.

‡ V
8V V
/ 
V

ã  CN÷C Awaaz Consumer Awards 2009, Images Fashion Forum 2009, Coca-Cola Golden
Spoon Awards 2009

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

ã *VImages Retail Awards, National Retail Federation Awards, World Retail Congress Awards,
Hewitt ÷est Employers 2007, PC World Indian Website Awards Reader¶s Digest Trusted ÷rands
Platinum Awards.V

ã  Retail Asia Pacific Top 500 Awards, Asia money Awards, Ernst & Young Entrepreneur of
the Year Award, CN÷C Indian ÷usiness Leaders Awards, LakshmipatSinghania ± IIM Lucknow
National Leadership Awards, Images Retail Awards , Readers¶ Digest Awards , CN÷C Awaaz
Consumer Awards, Reid & Taylor Awards for Retail Excellence

ã (VImages Retail Awards 2005, DAKS London

ã 9VImages Retail Awards 200(, Reid & Taylor and DLF Awards

ã ' Indian Express Award

V
V

8
V V

 7V

‡ EDLP [ Every Day Low Pricing]

‡ Experienced marketing team & executive staff.
‡ Strong culture, ethics and values are followed
‡ Emphasis on providing total customer satisfaction
‡ Point of purchase promotion to increase the purchase
‡ Variety of stuff under single roof
‡ Increase sales with the help of healthy competition between different department
‡ Maintains good employer-employee relation
‡ Cost control initiatives that is critical in a retail operations business
‡ Periodical reviews of the various operations have been done on regular basis to identify
the any possible threat and address the same within time

8- 7V

‡ Unable to meet store opening targets.V

‡ Unavailability of popular brand items with regard to clothing.V
V

 7V

‡ Population of the country is growing where the scope of market is kept on increasing for
the retail sector.
‡ Organized Retail less penetrated in India so it acts as a great opportunity to the
organization for its growth.
‡ Evolving consumer preferences.
‡ Economy is developing as the employment opportunities are increasing and the income
of the people is also increasing which increases life standards of people.V
 ‡ Company has more scope of expansion in two and three tier cities.V
V
V
7V
‡ Competitors Strategies
‡ Advancement of technology day by day.
‡ Government policies.
‡ Unorganized Retail sector
‡ Foreign direct investment cause more problems in future because of that many mergers
and acquisition are happening in Indian retail sector
V

VVVV3V%!VVVYV

8VV

‡ HELP DESK
‡ KIDS ACCESSORIES
‡ ÷A÷A SUITS
‡ JACKETS
‡ LADIES TOPS
‡ TRIAL ROOM
‡ PILLARS USED FOR DISPLAYING INFORMATION (SIZE CHART, SECTION
DESCRIPTION)
‡ WOOLEN CLOTHS FOR KIDS
‡ KIDS CASUAL WEAR
‡ KIDS JEANS AND SHORTS
‡ LADIES ETHINIC
‡ LADIES ACCESSORIES ± LINGERIES
‡ LADIES WESTERN
‡ MEN FORMAL SHIRTS
 ‡ MEN TROUSERS
‡ MEN SUITS AND ÷LAZERS
‡ MEN FA÷RICS
‡ MEN ETHINICS
‡ SOFT TOYS
‡ MEN ACCESSORIES ± SUNGLASSES, WRIST WATCHES ETC
‡ HOME DECORATIVE ITEMS
‡ HOME FURNISHING (CURTAIN CLOTHS, CARPETS)
‡ MUSIC COUNTER
‡ LUGGAGE
‡ FOOTWEAR
‡ SPORTS
‡ SCHEME ÷ASED PROMOTIONAL ITEMS
‡ FURNITURE ÷AZAR
‡ FOOD ÷AZAAR
‡ CASH COUNTER

V
V

V(V

m m
m 
 
m 
mm
V

V
V

m m
m  
m mm

.V;V  V V  

%VV V (V

V‘
V  V VV 
V

´uestion 1a): Do you frequently shop at big bazaar?

Table No.7.1:No of customer

YesV NoV TotalV

7(V 26V 100V

: No of customers
Inference:

From the above chart we can ascertain that majority of customers i.e., around 7(% of
sample customers frequently visits to the store and 26% of the customer visits the store rarely.

´uestion 1b): How frequently do you shop at big bazaar?

Customer Response

Sr.No.V ResponseV No. of customersV

1.V Every weekV 38V

2.V Once in two weekV 2(V

3.V Once in three weekV 16V

(.V Once in monthV 22V

Customer Response

Inference:

From the above table we can analyze that the majority of the customers i.e. 38 out of
100 customer visits store every week , followed by 2( customer once in two week. Thus we can
say that majority of customer visit big bazaar every week, may be during weekends. We can
conclude that the customer visit ÷ig ÷azaar for their weekly purchase.

What comes to your mind when you think about big bazaar?

Unique Selling Propositions of big bazaar

Sr.No.V USP¶sV No. of customersV

1.V DiscountV 3(V

2.V Product VarietyV 2(V

3.V ÷randV (V

(.V ´ualityV 8V

5.V Free offerV 28V

6.V OthersV 2V

Unique Selling Propositions of big bazaar

Inference:

From the data collected we can determine that among 5 USP¶s of big bazaar most
recognised are discounts and free offers, along with that it also recognised for product varieties.
÷ut they have to rethink about the brand available in the store and they have to expand their
brand availability.

Do you feel that you find different variety of product in ÷ig ÷azaar?
No of customer

YesV NoV TotalV

66V 3(V 100V

Product Variety

Inference:

From the above chart we can asertain that upto 66% percent i.e. majority of customers
satisfied with the variety of product in the store.

´uestion 2c): Do you find the specific brand that; you look in the big bazaar?

No. of Customers

YesV NoV TotalV

37V 63V 100V

No. of Customers
Inference:

From the above chart we can ascertain that 63% of customers find it difficult to get
specific brand. Mostly customers were not satisfied with brand availability in apparels section.

´uestion 3: In which section do you spend more time while shopping?

Customer Response

Sr.No.V ResponseV No. of CustomersV

1.V Food bazaarV 36V

2.V ApparelsV 21V

3.V Utensils V 28V

(.V OtherV 15V

Customer Response

Inference:

Most of the customer who visits to the ÷ig ÷azaar, would like to visit to the food
bazaar first which means it shows customer preference towards food bazaar followed by House
hold utensils section as they find more products varieties and offers in these sections.
´uestion (: Do you think this store has good parking facilities?

Parking Facilities

Sr.No.V ResponseV No. of CustomersV

1.V YesV 52V

2.V NoV (8V

Parking Facilities

Inference:

From the data, we conclude that still (8% of customers are not satisfied with the
parking facilities as they have to wait for long time to park their vehicle because of full parking.

´uestion 5: How is the ambiance of floor inside the store?

Store Ambiance

Sr.No.V ResponseV No. of CustomersV

ExcellentV
1.V 17V
GoodV
2.V 31V
3.V AverageV ((V
 ÷adV
(.V 8V

Store Ambience

Inference:

From the data collected with this question, (( out of 100 customer to respond about
cleaning of store is ok, 8 customer¶s respond is bad, 17 customer¶s is excellent, and 31
customer¶s respond is good,most of the customers were not satisfied with cleanliness and
temperature maintained in the store. There is need to improve cleanliness.
´uestion 6: How do you feel about sales persons and promoters?

: Sales persons and promoters behavior

Sr.No.V ResponseV No. of CustomersV

ExcellentV
1.V 17V
GoodV
2.V 22V
3.V AverageV 29V
÷adV
(.V 32V

Sales persons and promoters behavior

Inference:

From the above data we can conclude that 62% of customers feel the behavior of sales
person and promoters is from average to bad. Customers are not satisfied with sales person and
promoter¶s behavior as there interaction is very less with customers.

´uestion 7: How is billing process?

÷illing Process

Sr.No.V ResponseV No. of CustomersV

ExcellentV
1.V 12V
GoodV
2.V 23V
 3.V AverageV 27V
÷adV
(.V 38V

÷illing Process

Inference:

From the above data we can conclude that 38% of customers are not satisfied with
billing facilities.

´uestion 8: Do you feel that ÷ig ÷azaar provides you value for money?

Value for Money

Sr.No.V ResponseV No. of CustomersV

1.V YesV 87V

2.V NoV 13V

Value for Money

Inference:

From the above data, we come to know that majority of the customer said that they are
really getting value for there money.

&%
V 
V, V

V%.V" VVV V%VV%.V

´uestion 9: The cleanliness and hygiene maintained in the store is-

Table No.7.12: Cleanliness and Hygiene

Sr. No.V ResponseV No. of customers:V

1.V ExcellentV 6V

2.V GoodV 2(V

3.V AverageV 38V

(.V ÷adV 32V

Figure No.7.12: Cleanliness and Hygiene

Inference:

From the above data, we come to know that most of customers i.e. 70% of customers
are not satisfied with cleanliness maintained in the store.

´uestion 10: Product display and signage in the store is-

:Product display and Signage

Sr.No.V ResponseV No. of customersV

 ExcellentV
1.V 11V
GoodV
2.V 18V
AverageV
3.V 58V
÷adV
(.V 13V

Product display and Signage

Inference:

From the above data, we can conclude that most of customers marked product display and
signage as average to bad and expect improvement so that they can easily find what they want.

´uestion 11: Location of ÷ig ÷azaar in your city is-

: Location of Store

Sr.No.V ResponseV No. of customersV

ExcellentV
1.V 38V
GoodV
2.V 31V
AverageV
3.V 9V
÷adV
(.V 6V

Location of Store
Inference:

From the above data we can conclude that 69% of customers feel that location of store
is excellent to good.

´uestion 12: The store layout at this store makes it easy for customers to move around the store
and find what they want?

: Store Layout

Sr. No.V ResponseV No. of customers:V

1.V Strongly DisagreeV 13V

2.V Somewhat DisagreeV 28V

3.V NeutralV (1V

(.V Somewhat AgreeV 11V

5.V Strongly AgreeV 7V

Inference:

From the above data we can conclude that (1% of customers feel store layout is not up
to mark and still more (1% customers not able to categories as good.
´uestion 13: Through which promotional source you come to know about ÷ig ÷azaar?

: Promotional Source

Sr. No.V ResponseV No. of customers:V

1.V Print MediaV 33V

2.V Electronic MediaV 32V

3.V Word of MouthV 2(V

(.V MagazineV 11V

: Promotional Source

Inference:

From the above data we can conclude that Most of customers came to know about ÷ig
bazaar by Electronic Media (32%) and Print Media (33%). 2(% of customers came to know by
word of mouth.

´uestion 1(: Which type of media appeals you more for purchasing from ÷ig ÷azaar?

Promotional Media

Sr. No.V ResponseV No. of customers:V

1.V Print MediaV 27V

2.V Electronic MediaV 23V

 3.V Word of MouthV 36V

(.V MagazineV 1(V

Promotional Media

Inference:

From the above data we can conclude that 36% customers feel word of mouth plays a
major role in their decision making.

´uestion 15: How much do you think that the promotional activities help in making your
shopping beneficial?

Table No 18: Promotional Activities

Sr. No.V ResponseV No. of customers:V

1.V To great Extent(1)V 27V

2.V 2V 35V

3.V 3V 2(V

(.V (V 12V

5.V Not Much(5)V 2V

Figure No.18: Promotional Activities

Inference:From the above data we can conclude that Promotional scheme is beneficial in making
shopping easy. 27 customers ranked it at scale of great extend. 2( believe that it is effective
where as 37 said it is most effective and need this type of information before actual purchase.

´uestion 16: Which of the following service you have used most frequently?

Table No.7.19: Service used by customers most frequently

Sr.No.V ServiceV No. of customers:V

1.V Home deliveryV 23V

2.V ExchangeV 10V

3.V Gift HampersV 6V

(.V ÷aggage CounterV 78V

5.V ParkingV 51V

6.V HelplineV (V

7.V AlterationV 8V

8.V OtherV 2V

Figure No.7.19: Service used by customers

Inference:
 Above chart indicate that, most of customers use ÷aggage and Parking facility. Very few
customers use helpline, alteration and other facilities where as Home delivery, exchange and gift
hamper service attracts some customers.

VV
V

 m 
  
‘ ‘
 m 
‘ m V
V

%. VBV+  V

‡ Store is performing well in attracting the customers.

‡ Most of the people who visit to the stores are of age group between 22-(5 yrs.

‡ People usually visit the store once in a week i.e. in weekends

‡ They have different variety of product in food bazaar and house hold utensils

‡ The main dissatisfaction for the customer is in the billing section and at parking space.

‡ Discounts and offers are doing well in the store.

‡ Most of the customers who visit stores are having annual income between Rs.1.5-3 lac.

‡ Inside the store, employee¶s interaction is very less with customers.

‡ Location of ÷ig ÷azaar is outstanding.

‡ Cleanliness and hygiene maintained in the store is not up to mark.

 ‡ ÷ig ÷azaar provides value added service like home delivery, alteration, helpline etc. but
very few customers go for it.
‡ Electronic and print media has high reach in consumer and plays a major role in
communication about promotional scheme and offers where as word of mouth make
significant impact in decision making than any other means of communication.
‡ Customers don¶t find brands they expect in ÷ig ÷azaar especially in apparels section.

  V

V
‡ ÷ig ÷azaar offers a wide variety of products of different prices and different qualities
satisfying most of its customers.

‡ Prices and offers in ÷ig ÷azaar have been one of the main attractions and reasons for its
popularity. The price ranges and the products offered are very satisfying to the customers.

‡ Considering the fact that there are huge middle class families in India, ÷ig bazaar has had
a huge impact on the middle class section of India, the prices, variety and sales strategy
has helped in getting the middle income groups getting attracted towards ÷ig ÷azaar.

‡ The store layout and the assortment of goods is not the best at ÷ig ÷azaar, Customers
find it hard to find what they require; this leads to dissatisfaction of customers.
‡ ÷ig ÷azaar is not acclaimed for high class service. The staffs recruited is not very well
trained and the billing queues take a long time to move, this irritates customers which
makes them visit the store more seldom.

‡ The customer get all kind of products in the ÷ig ÷azaar, i.e. they are following good
merchandising mix, but in some section like apparels they have to keep different brands
in order to attract more customer.

‡ Word of mouth publicity played major role in making ÷ig ÷azaar so popular where as
media is used to communicate new offers at the store.

‡ Customers are not aware and hence don¶t avail value added services provided by the
store.

‡ Customers are more satisfied with the merchandising present in the food bazaar and
household utensils section.

V
V

""  V

The following suggestion can be given to ÷ig ÷azaar

‡ Keep brands like Koutons, Cotton County which is well known for offers.
‡ Cleanliness and hygiene should be maintained regularly.
‡ ´uick services for logistics for customer

‡ External environment like parking area should be increase as most of customers face
problem of parking specifically during rush hour.

‡ The billing time should be reduced by increasing no. of cash counter keeping in view
customer traffic intensity.
‡ During rush hour, can make provision of less paying counter so customer who want to
purchase single product need not to give up because of long queue.

‡ Store layout needs to be improved.

‡ Proper signage should be there so that customer can locate the products easily.V
‡ Value added services have to be improved so that most of customers will avail those
services.V
‡ Train the sales executive towards People managementV
 V

V VBV3% V

3-V
V
‡ Principles of Marketing ± Philip Kotler and Gery Armstrong, valume (7th addition )

‡ How to Prepare for a Summer Project- Dr. Dilip M. Sarawate

‡ Research Methodology - M.V. Kulkarni

Y! V
V
÷usiness Today
V
V
V
8%V
V
È  


 

È    

È   

È  
 

‡ www.ibef.org

 5V
V

C V

Name ± Age ±

Gender- M ( ) F( ) Mobile No -

E Mail- Date-

Occupation- Annual Income-

1. a) Do you frequently shop at big bazaar?

A). Yes ( ) ÷). No ( )

b) How frequently do you shop at big bazaar?

A) Every week ( ) ÷). Once in two week ( )

 C). once in three week ( ) D). Once in a month ( )

2. a) What comes to your mind when you mean about big bazaar?

A). Discount ( ) ÷). Product variety ( ) C). ÷rand ( )

D). ´uality ( ) E). Free offer ( ) F). Others ( )

b) Do you feel that you find different variety of product in big bazaar?

A). Yes ( ) ÷). No ( )

c) Do you find the specific brand that; you look in the big bazaar?

A). Yes ( ) ÷). No ( )

3. In which section do you spend more time while shopping?

A). Food bazaar ( ) ÷). Apparels ( )

C). Household utensils ( ) D). Other section ( )

(. Do you think, this store has good parking facilities?

A). Yes ( ) ÷). No ( )

5. How is the ambiance of floor inside the store?

A). Excellent ( ) ÷). Good ( ) C).Ok ( ) D). ÷ad ( )

6. How do you feel about sales persons and promoters ?

A). Excellent ( ) ÷).Good ( ) C).Average ( ) D). ÷ad ( )

7. How is billing process?

A). Excellent ( ) ÷). Good ( ) C). Average ( ) E). ÷ad ( )

8. Do you feel that ÷ig ÷azaar provide you value for money?

A). Yes ( ) ÷). No ( )

9. The cleanliness and hygiene maintained in the store is-

A). Excellent ( ) ÷).Good( ) C). Ok ( ) D). ÷ad ( )

10. Product display and signage in the store is-

A). Excellent ( ) ÷).Good( ) C). Ok ( ) D). ÷ad ( )

11. Location of ÷ig ÷azaar in your city is-

A). Excellent ( ) ÷).Good( ) C). Ok ( ) D). ÷ad ( )

12. The store layout at this store makes it easy for customers to move around the store and find
what they want?

‡ Strongly Disagree ( ) ÷) Somewhat Disagree ( ) C) Neutral ( )

 D) Somewhat Agree ( ) E) Strongly Agree ( )

13. Through which promotional source you come to know about ÷ig ÷azaar?

A). Print Media ( ) ÷). Electronic Media ( )

÷). Word of Mouth ( ) C). Magazine ( )

1(. Which type of media appeals you more for purchasing from ÷ig ÷azaar?

A). Print Media ( ) ÷). Electronic Media ( )

÷). Word of Mouth ( ) C). Magazine ( )

15. How much do you think that the promotional activities help in making your shopping

÷eneficial?

To great Extent -- -- -- -- -- -- Not much

1 2 3 ( 5

16. Which of the following service you have used most frequently?

A). Home Delivery ( ) ÷).Exchange ( ) C). Gift hampers ( )

D) ÷aggage counter ( ) E) Parking ( ) F) Helpline ( )

G) Alteration ( ) H) Other ----------------------------------------------

Please give your experience