big bazaar project doc Document Transcript

1. Store Environment and Merchandising Mix Introduction 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. The word "Retail" originates from a French-Italian word. Retailer-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. The topic store environment and merchandising mix present in any retail store greatly influences the customer satisfaction level and the customer perception towards that store. Merchandising is one of the hot issue in todays retail competition world which is very important for all the retail store to follow that. This study was done to know that, do customers are really satisfied with the merchandising Mix present in the Big bazaar and also to find out how the store envirnoment influences the shopping behaviour of the customer and to know which section in the Big bazaar have good merchandising mix and to know how the store environment can be improved. STATEMENT OF THE PROBLEMS: To study the store environment and merchandising mix To study of the store environment and merchandising mix in big bazaar super centre, to determine the satisfaction level of the customers about the store environment and analyze the merchandising mix to influence on the customer satisfaction level, and to improve the store environment to increase the sales and to attract the customers, this study helps to improve the environment of the store to reach the customer satisfaction level and improve the merchandising in big bazaar supercentre H R Institute of Higher Education, Hassan 1 2. Store Environment and Merchandising Mix OBJECTIVES OF STUDY: To determine the customer satisfaction level towards store environment. To analyze how the merchandising mix influence the customer satisfaction level To determine that, Big Bazaar has satisfied Merchandising Mix. To analyze how the store environment can be improved. Scope of the Study: Customer is one whom you satisfy a want or need in return for some of payment. The payment may be money, time or may be goodwill but there is certain form of payment. Satisfaction level of a person is felt by comparing products perceived in relation to the persons expectations. Satisfaction level is the function of the difference between perceived performance and expectations. If the performance falls short of expectations, the customer will not be satisfied. If the performance matches the expectations the customers are highly satisfied. If the performance is beyond his expectations the customer is excited or thrilled. Customer satisfaction is customers positive or negative feeling about the value that was perceived as a result of using particular organizations offering in specific used reaction to a series of use situation experience. According to peter F. Ducker, the purpose of business is to create and then retain a satisfied customer. A society supports business because they serve its members by catering to their needs and leave them satisfied. If the business dissatisfied its customers and not only these customers stop availing service , but society

at large will condemn the firm and may even penalize it to the point of its extinction. The study is limited to the customers of Big Bazaar , J.L.B Road ,Mysore Targeted customer includes those who enter the store. The loyal customer to the store. H R Institute of Higher Education, Hassan 2 3. Store Environment and Merchandising Mix RESEARCH METHODOLOGY:- A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. INTRODUCTION This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings, which are also dealt with and leads to a logical deduction towards the analysis and results. 1. Primary data:- a. Personal interview with dealers and user of tractors has been used as survey technique for collecting data. The dealers of different branches of tractor were also enquired about question depending on circumstances. The survey has been made by using primary data and secondary data. b. The primary sources consist of information collected from dealers of different branches and tractors owners and agriculturist. The secondary data has been collected from encyclopedias, survey of Indian agriculture, Technical journals and news paper reports. 2. Secondary data:- These are the sources contain data, which have been collected and compared for some other purpose. The secondary source consists of readily available components and already compiled statistical statement and reports whose data may be used for study. Secondary data have been collected from many sources. The major sources of secondary data are given below. Reports/records Websites Organizations old data H R Institute of Higher Education, Hassan 3 4. Store Environment and Merchandising Mix DETERMINATION OF THE SAMPLE PLAN AND SAMPLE SIZE TARGET POPULATION It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling SAMPLE SIZE: This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors: Project goals How you plan to analyze your data How variable your data are or are likely to be

How precisely you want to measure change or trend The number of years over which you want to detect a trend How many times a year you will sample each point How much money and manpower you have H R Institute of Higher Education, Hassan 4 5. Store Environment and Merchandising Mix SAMPLE SIZE I have targeted 100people in the age group above 21 years for the purpose of the research. The target population influences the sample size. The target population represents the Delhi regions. . The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section. DATA COLLECTION Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. These questionnaires were personally administered. The firsthand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the consumer durable products etc. The data was collected by interacting with 100 respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of Farmers, Businessmen, and Professionals etc. the required information was collected by directly interacting with these respondents. H R Institute of Higher Education, Hassan 5 6. Store Environment and Merchandising Mix LIMITATIONS of this study 1. The lack of detailed understanding of the relationships between urban form and travel behaviour remains an obstacle to a more refined impact analysis: "Most research on the link between urban form and travel behaviour has relied on relatively coarse data on both urban form and travel patterns and those found aggregate- level correlation between them. [E.g., residential density or form vs. amount of travel.] It leaves open the question of the more detailed relationship between urban form and travel behaviour, that is, which characteristics of urban form influence which aspects of travel choice. 2. The challenge arises in part from a mismatch between the data gathering focus of regional transportation planning and the requirements of smaller scale analyses of land-transportation relationships and their effects on travel behaviour: In general, the absence of rich land use and urban design data at the tract level is a significant barrier to carrying out neighborhood-scale studies of how the build environment shapes travel demand. From regional travel surveys...there are rarely enough travel diary data points for conducting small-scale analyses. And while metropolitan planning organizations generally have detailed travel data, there are no readily available secondary sources that provide parcellevel or even block-level summaries of land use composition, building characteristics, or features of the walking environment. 3. a second significant limitation, made worse by the lack of data, is the problem of multi-co linearity. Characteristics of travel behaviour do not operate independently, and in fact tend to be found together Data availability, relative coarseness, the poor quality of land use data, and the need for significant

improvement in its quality are commonly cited in researchers' H R Institute of Higher Education, Hassan 6 7. Store Environment and Merchandising Mix discussions of study limitations. (E.g., Kerberos 1996, Ewing 1996, Halethorpe 1996.) Walk trips, especially, are difficult to model at the neighbourhood level, due to their infrequent reporting. (Carver 1996). This means that even the travel diary coverage mentioned above would permit only INDUSTRY PROFILE INTRODUCTION The word "Retail" originates from a FrenchItalian word. Retailer-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. Indian Retail Industry: H R Institute of Higher Education, Hassan 7 8. Store Environment and Merchandising Mix Indian retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. 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 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 78% 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 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behaviour 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 multistored malls, huge shopping centers, 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. It is expected that by 2010, India may have 600 new shopping centres. 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 H R Institute of Higher Education, Hassan 8 9. Store Environment and Merchandising Mix the growth of Indian retail sector. The India 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. KEY CHALLENGES: LOCATION: "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: o Investigate alternative trading areas. o Determine the type of desirable store location o Evaluate alternative specific store sites MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. 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 H R Institute of Higher Education, Hassan 9 10. Store Environment and Merchandising Mix 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. PRICING: 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 change TARGET AUDIENCE: "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, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom SCALE OF OPERATIONS: 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. H R Institute of Higher Education, Hassan 10 11. Store Environment and Merchandising Mix Size of Indian retail 2008 2010 Percentage change Size of 353 416 18% retail in INDIA(in $billions) Share 7 12 71% organized retail H R Institute of Higher Education, Hassan 11 12. Store Environment and Merchandising Mix Size of 78,300 Cr 2,30,000 194% organized Cr retail(in Rs) Indian retail types Convenient stores Branded stores Specialty stores Departmental stores Super markets Discount stores Hyper markets Shopping markets Convenient stores Malls: The largest form of organized retailing today Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq. ft. and above. They lend an H R Institute of Higher Education, Hassan 12 13. Store Environment and Merchandising Mix ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, India bulls mega Mart, Pantaloon, Wall mart etc. Specialty Stores: Chains such as the Bangalore 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. Discount Stores: 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 . Department Stores: Large stores ranging from 20000-50000 sq.

ft, catering to a variety of consumer needs. 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!. Marts/Supermarkets: 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 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales. Convenience Stores: H R Institute of Higher Education, Hassan 13 14. Store Environment and Merchandising Mix These are relatively small stores 4002,000 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 TRADITIONAL RETAIL SCENE IN INDIA 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 inhouse. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F 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. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining 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, Birthdays & 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 H R Institute of Higher Education, Hassan 14 15. Store Environment and Merchandising Mix living in Metros. Purchasing power of India urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, 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. Brand 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. Drivers of change in retailing Changing demographics and industry structure Expanding Computer technology Emphasis on lower cost and prices Emphasis on convenience and service Focus on productivity Added experimentation Essentials of Retailing Customer orientation- The retailer makes a careful study of the needs of the customer and attempts to satisfy those needs. H R Institute of Higher Education, Hassan 15 16. Store Environment and Merchandising Mix Goal orientation The retailer has clear cut goal and devises strategies to achieve those goals. Value driven approach- the retailer offers good value to the consumer with merchandise having the price and quality appropriate for the target market. Coordinated efforts- Every activity of the firm is aligned to the goal and is designed to maximize its efficiency and deliver value to the consumer Organized Retail is evolving with changing customer aspirations 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. Growth Factors in Indian Organized Retail sector: 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. In fact, India retail industry is the fastest growing industry in India and it accounts for 10% of the country's GDP. In 2006, the retail industry in India amounted to US$ 200 billion and out of this; the organized retail sector in India amounted to US$ 6.4 billion. By 2010, the Indian organized retail sector is expected to rise to US$ 23 billion. In 2003, the H R Institute of Higher Education, Hassan 16 17. Store Environment and Merchandising Mix India organized retailing sector accounted for more than 4.5 million sq. ft of space absorption by malls. 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. Bharti 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. Global retail giants are also entering the

retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. The global retail giants who are entering the organized retail sector in India are: Wall- Mart Tesco Carrefour SA Metro AG The factors for growth in Indian organized retail sector are many and thats the reason behind its massive growth. But for this to continue both the Indian retailers and the government will have to work together Retail market size &share in 2006 H R Institute of Higher Education, Hassan 17 18. Store Environment and Merchandising Mix Category Market Size $ billion % Share 2006 2006 Food, Beverages and Tobacco 195 65% Personal Care 15 5% Apparel 21 7% Footwear 5 2% Furnishings 4 1% Consumer Durables & IT 14 5% Furniture 9 3% Jewellery & Watches 15 5% Medical Care and Health 8 3% Services Recreation 2 0.6% Others 12 4% 300 100% 100% 3% 20% 20% 30% 80% 36% 40% 55% 60% 81% 85% 40% RETAIL MARKET COMPARISION 20% 0% R Institute of Higher Education, Hassan H 18 US Taiwan Malaysia Thailand Brazil Indonesia Poland China India Modern Channel Traditional Channel 19. Store Environment and Merchandising Mix Indian Organized Retail Sector's Impact on Lifestyles The Indian organized retail sector's impact 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. Now a days the Indian consumers 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, the with help of print & electronic media. The social changes with the rapid economic growth due to trained personnels, fast modernization; enhanced availableness of retail space is the positive effects of Liberalization. The growth factors of organized retail in India are:- Increase in per capita income which in turn increases the household consumption H R Institute of Higher Education, Hassan 19 20. Store Environment and Merchandising Mix 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 parlours like Nescafe, Tata Tea, Caf Coffee and Barista, the Indian food habits has been altered. These stores have earned the reputation of being 'super saver locations'. India will be a unique business 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. Employment Generation by India Organized Retail Sector 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 retailers takes the lion's share in the Indian retail sector, but the organized retailers are growing at a good pace, and promises an increase of proportion of 9 - 10% by 2010. This is to be the largest sector after the agricultural sector. The increase in the number of consumers twinned with the introduction of organized H R Institute of Higher Education, Hassan 20 21. Store Environment and Merchandising Mix 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. Benefits to the economic growth:- Better quality products and services would lead to better competition More exports bring more foreign direct investments Organized Indian etail 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 4 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 retail management programs to open up and help bridging the gap of supply & demand of talented professionals for management. Scope of the Indian Retail Market: 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 10% of the countrys GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. H R Institute of Higher Education, Hassan 21 22. Store Environment and Merchandising Mix The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. 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 consumers behaviour. 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 favourable. The scope of the Indian retail market has been seen by many retail giants and thats the reason that many new players are entering the India retail industry The major Indian retailers are: Pantaloons Retail India Ltd Shoppers Stop Bata India Ltd Music World Entertainment Ltd Judging the scope for growth in the Indian retail industry many global retail giants are also entering the Indian retail market. They are : Tesco Metro AG Wall- Mart The scope for growth in the Indian retail market is seen mainly in the following cities: Mumbai Delhi Pune Bangalore Hyderabad Kolkata H R Institute of Higher Education, Hassan 22 23. Store Environment and Merchandising Mix Chennai The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian

retailers will have to make a determined effort Functions of retailing: 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. Storing: 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. Breaking bulk: Breaking 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 H R Institute of Higher Education, Hassan 23 24. Store Environment and Merchandising Mix are then tailored by the retailers into smaller quantities to meet individuals consumptions needs. Holding stock: 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. Additional Services: 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. The display itself allows the consumer to see and test products before actual purchase. Retail essentially completes transactions with customers. Activities performed by retailers: The four major activities, as an carried out by retailers are; 1. Arrange for assortment of offerings 2. Breaking quantity 3. Holding stock 4. Extending services H R Institute of Higher Education, Hassan 24 25. Store Environment and Merchandising Mix Arranging assortment Providing Activities of Services retailers Breaking bulk Arranging assortment: An assortment is a retailers selection of merchandise. It includes both the depth and breadth of products carried. Retailers have to select the combination of assortments from various categories.

The assortments must include suitable items of multiple brands, SKUs, and price points. They should be on account of physical dimensions and attributes. Retailers need to consider certain factors while devising assortment plans for those stores: profitability associated with particular merchandise mix, store image, layout and the level of compatibility between the existing merchandise. for example, food world , a leading food supermarket positioned as a one- stop shopping centre, deals in multiple product categories along with all possible variant of brands , stocks keeping units , and physical attributes in order to meet the expectations of their consumers and survive in the business . whereas , subhiksha, a grocery chain in south India has impressive assortments of only the fast moving brands and SKUs rather than all available variants in the market. Their assortment plan is governed by location, size, and store image (value for money) of their stores. H R Institute of Higher Education, Hassan 25 26. Store Environment and Merchandising Mix Breaking bulk: Breaking bulk means physical repacking of the products by retailers in small unit sizes according to customers convenience and stocking requirements. Normally, retailers receive large quantities of sacks and cases of merchandise from suppliers to reduce their transportation costs. In order to meet their customers requirements retailers have to break or arrange the bulk into convenient units. This entire function of the retailers adds value to the offerings not only for the end customers but also for the suppliers in the value chain. Even in the earlier days of generic and commodity-based trading most of the retailers used to perform this important function in the value chain. This function receives negligible attention from the retailers now due to the introduction of new product categories, such as FMCG and ready to wear apparel. Holding stock: To ensure the regular availability of the offering retailers maintain appropriate levels of inventory. Consumers normally depend on the retailers directly to replenish their stocks at home. Therefore, retailers, on periodic basis, maintain the required level of stocks to meet the regular or seasonal fluctuations in the demand. Retailers need to maintain equilibrium between the range and variety carried and sales which it gives rise to. Retailers have to face the negative consequences of holding unwanted level of stock for the instance too little stock will hamper the sales value, where as too much stock will increase the retailers cost of operation. Generally, in small town of India most retailers have arrangements with the nearby ware house to stock the goods. Some are so small that they have to stock only on the shop floor. Retailers in the organizer sector to a certain extent are using effective software packages for maintaining adequate level of inventory. At the same time, retailers avail of just in tine deliveries with the help of efficient consumer response systems, which reduces the burden of maintaining high level of stocks. Extending Services: Retailers provide multiples services to immediate customers and other members of H R Institute of Higher Education, Hassan 26 27. Store Environment and Merchandising Mix the value chain. The set of services extended by particular retailers may be part of their core product offering or it may add on to their product or service. Retailers offer credit, home delivery, after sales services and information regarding new products to their customers, thereby making the shopping experience convenient and enjoyable. At the same time they provide stocking place, reach to the ultimate costumers, and information about the concerned target segment to the suppliers. For ex: time zone, the first organizer retail chain of wrist watches in INDIA, started by leading watch manufacturers Titan, set up in all its stores, service

centres with proper equipment and trained man power.. H R Institute of Higher Education, Hassan 27 28. Store Environment and Merchandising Mix Company profile BIG BAZAAR SUPER CENTRE Big Bazaar Hyper mart chain in India Outlet 140 out lets Parent group Future group Owner Kishore biyani (CEO) Founded 2001 Head quarter Jogeshwari, Mumbai Industry Retail Website www.bigbazaar.com Tagline Is sesata aur accha kahin nahi H R Institute of Higher Education, Hassan 28 29. Store Environment and Merchandising Mix Big Bazaar: Mysore Big Bazaar Super centre was opened on 26th September 2008. It is the 96th Big Bazaar of Pantaloon Retail [India] Ltd (Now, it has renamed as Future Value Retail Limited). It has around 250 employees with an occupied space of 82,055 sq.ft and catering to the needs of 13, 00,000 Mysoreans. At Big Bazaar Super centre, Mysoreans can definitely get the best product at better price. It sells variety of merchandise at affordable rates; the prices which it claims are lowest in the city. Usually, the items are clubbed together for offers to customers and it also offers weekend as well as monthly discounts. At Big Bazaar Super centre one can a find variety of Departments as shown below. FOOD BAZAAR GENERAL MERCHANDISE APPARELS OR FASHION @ BIG BAZAAR NEW BUSINESS DEVELOPMENT DEPOT HOME BAZAAR NAVARAS These departments are managed by two departments. They are OPERATOIONAL DEPARTMENT SUPPORTING DEPARTMENTS Big Bazaar, a part of the future Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazaar with over 140 outlets in H R Institute of Higher Education, Hassan 29 30. Store Environment and Merchandising Mix a different part of India is present in both the metro cities as well as in the small towns. Big Bazaar has no doubt made a big name in the retail industry of India, moreover shopping here is further made a memorable experience with the varied rates of discounts on products as well as discount vouchers available in a variety of amounts, like INR 2000, INR 3000, INR 4000, INR 5000 and INR 10000 on all Big Bazaar products and accessories. The variety of product range in Big Bazaar Super centre: 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 salvable products. Future group (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 7 millions square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people. The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar a uniquely Indian Hypermarket chain, food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. H R Institute of Higher Education, Hassan 30

31. Store Environment and Merchandising Mix 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 the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - thats what they guarantee. With the ever increasing array of private labels, it has opened the doors into 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. Big Bazaar plans to add much more to complete your shopping experience. Big Bazaar is a chain of hyper markets India, currently with more than 100 stores. It is owned by the Future retail India ltd, Future Group. It follows the business model as WalMart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. Moreover the customer friendly ambiance and the organized retailing of products also make Big Bazaar one of the successful retail companies in India. Future group Future Group India was established in 1994 with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction. Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Future Group India was established in 1994 with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction . Through their strategic investment and H R Institute of Higher Education, Hassan 31 32. Store Environment and Merchandising Mix services, the future of Future Group shows a rising star in the business sky of India. Future group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship company, Future Group (India) Limited operates over 7 million square feet of retail space, has over 1000 stores of its leading retail formats include, Pantaloon, Big Bazaar, Central, Food Bazaar, Home Town, Ozone, Depot, future Money and online retail format, futurebazaar.com. Future group includes, Future Capital Holding, Future Generally India Indus league clothing and Galaxy Entertainment that manages sports Bar, Brew Bar and Bowling Co . Future Capital Holding, the group s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in consumer-related brands and hotels. The groups joint venture partners include Italian insurance major, generally. French retailer ETAM group. Us-based stationery products retailers, Staples Inc. and UK-based Lee Cooper and INDIA-based Talwalkars, Blue Foods and Liberty Shoes. Future Groups vision is to, deliver Everything, Everywhere, Every time to every Indian consumer in the most profitable manner. The group considers as a core value and its corporate credo is- Rewrite rules, Retain values. Future Groups joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The groups flagship company, future Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the

groups core value of Indians. The groups corporate credo is, Rewrite rules, Retain values. FUTURE RETAIL: The retails businesses of Future Group in India are divided into three main categories: H R Institute of Higher Education, Hassan 32 33. Store Environment and Merchandising Mix Future Value Retail India Limited: The leading retail formats under this include: o Big Bazaar o Central o Food Bazaar o Home Town o E Zone o Depot ORIGIN OF THE ORGANISATION: Big Bazaar is a chain of department stores in India, currently with 75 outlets. It is owned by the Future value Retail India Ltd Future Group. It works on the same economy model as Wal-Mart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the biggest and the fastest growing chain of department store and aims at being 350 stores by the end of year 2010. 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 the Indian customers. Big Bazaar was founded by Kishore Biyani in the year. At Big Bazaar, you will definitely get the best products at the best prices thats what we guarantee. With the ever increasing array of private labels, it has opened the doors into 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. Big Bazaar plans to add much more to complete your shopping experience Future value Retail (India) Limited is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 7 million square feet of retail space, has over 1000 stores across 51 cities in India and employs over 25,000 people. H R Institute of Higher Education, Hassan 33 34. Store Environment and Merchandising Mix The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar and Star and Sitars. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. Future Group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship company, Pantaloon Retail (India) Limited operates over 7 million square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, ozone, Depot, Future Money and online retail format, futurebazaar.com. Future Group companies includes, Future Capital Holdings, Future Generally India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co.

Future Capital Holdings, the groups financial arm, focuses on asset management and consumer Credit. H R Institute of Higher Education, Hassan 34 35. Store Environment and Merchandising Mix Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers Indian- ness as a core value and its corporate credo is Rewrite rules, Retain values. Joint Ventures Companies Capital and Retail India The group is a joint venture partner in Capital and Retail India, along with Singapore- based Capital and Limited. The company provides retail management services to retail properties owned or managed by various group companies and investment funds. Foot mart Retail Foot mart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear products in India. Planet Retail Holdings Ltd. The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India. Future General India Life Insurance Company Limited Future General India Life Insurance Company Limited (FGILICL) was incorporated on October 30, 2006 to establish and conduct the business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc. . . . Staples Inc .USA Staples, a Fortune 500 company is the worlds largest office products company and is committed to making it easy for customers to buy a wide range of office products, including supplies, technology, furniture, and business services. With over 2000 stores across the globe and $27 billion in sales, Staples serves businesses of all sizes and consumers in 27 countries. A staple invented the office superstore concept in 1986 and is H R Institute of Higher Education, Hassan 35 36. Store Environment and Merchandising Mix head quartered, outside, Boston. Staples Future Office Products Pvt. Ltd. was formed in May 07 with an aim to make it easy for Indian customers to run their offices by providing over 7000 products covering the entire gamut of technology, stationery, furniture. Blue Foods Pvt Limited Blue Foods Private Limited specializes in niche multi cuisine restaurants across the country. The company operates popular restaurants and food courts Cream Centre, Bombay Blues, Copper Chimney, Spaghetti Kitchen, Noodle Bar, Gelato and The Spoon. Talwalkars Better Value Pvt Limited Popularly known as Talwalkars, it is India's largest chain of health centres. It has 33 ultramodern branches across major cities in the country, with a membership of over 50,000 Axiom Telecom LLC, UAE Axiom Telecom is the largest and leading, authorized distributor and retailer for international brands such as Nokia, Sony Ericsson, Samsung, Motorola, Thuraya and i- mate in Middle East and Europe. Etam Future Fashions Limited With a network of more than 3,500 sales outlets in 40 countries and regions, the Etam Group is an international player in the women's fashion market with a turnover of Euro 960.2 Million in 2006. Liberty shoes limited H R Institute of Higher Education, Hassan 36 37. Store Environment and Merchandising Mix Liberty Shoes Limited is the only Indian company that is among the top 5 manufacturers of leather footwear in the world with a turnover exceeding US$100 Million. Lee cooper Founded in 1908, Lee Cooper is the oldest jeans company in Europe having a large and enviable collection for men and Major Milestones 1987- Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, Indias first formal trouser brand. 1991- Launch of BARE, the Indian

jeans brand. 1992 -Initial public offer (IPO) was made in the month of May. 1994 -The Pantaloon Shoppe exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi- brand retail outlets across the nation. 1995-John Miller Formal shirt brand launched 1997Pantaloons Indias family store launched in Kolkata . 2001-Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched. 2002-Food Bazaar, the supermarket chain is launched 2004-Central Shop, Eat, Celebrate in the Heart of Our City Indias first seamless mall is launched in Bangalore. 2005- Fashion Station - the popular fashion chain is launched all a little larger - exclusive stores for plus-size individuals is launched H R Institute of Higher Education, Hassan 37 38. Store Environment and Merchandising Mix 2006-Future Capital Holdings, the companys financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali. PRODUCT and SERVICE PROFILE a) Depot b)NBD (New Business Development 1) General books 1) Watches 2) Office stationary 2) Fashion Jewellery 3) Children stationary 3) Sunglasses 4) Film VCDs & DVD 4) Car audio systems H R Institute of Higher Education, Hassan 38 39. Store Environment and Merchandising Mix c) Mobile Bazaar: d) Shringar 1) All kinds of mobile handsets ranging 1) Bangles from Rs 1000 to Rs 25000 of different 2) Jewellery sets company 3) Bracelets 2) All mobile accessories 4) Hair Accessories 3) All major prepaid sim cards 5) Bindies 4) All post paid connections 6) Chins 5) Cordless phones & landline phones. e) Plastics, Utensils, Crockery (PUC) Plastics: Utensils: 1) Buckets 1)Plates, Bowls, Glasses 2) Casseroles 2) Non stick Cookwares 3) Containers 3) Kitchen Tools 4) Boxes 4) Tiffin Boxes 5) Flasks 6) Bowls 7) Jugs & sippers 8) Bottles & Mugs H R Institute of Higher Education, Hassan 39 40. Store Environment and Merchandising Mix Crockery: f) Luggage 1) Crockery cutlery 1)Travel bags 2) Table Materials /Napkins 2) Trolleys 3) Dinner sets 3) School & College Bags 4) Wine, Juice Glasses 4) Ladies purse & bags 5) Suitcase g) Ladies apparels h) Mens apparels 1) Sarees 1)Formal Shirts & Pants 2) Dress Materials 2) Casual Shirts & Pants 3) Under garments 3) Party Wears 4) Nightwear 4) Fabrics [cut pieces] 5) Western wears 5)Other Accessories 6)Suits & Blazers 7) Ties 8) Jeans Pants 9)Belts, Handkerchiefs 10)Ethnic wears i) Infants Section: j)Toys Department 1) Shirts, 1)Soft Toys 2) Baniyans, 2) Board games 3) Jhabas 3) Dolls 4) Vests 4) Educational toys 5) Bibs feedings 5) Remote Cars , bikes 6) Bed items 6) Sports items: Cricket bats, balls, 7) Baba suits, Frocks badminton & tennis rackets, hockey 8) Diapers, Pampers bats etc 9) Other baby accessories 7) Cycles H R Institute of Higher Education, Hassan 40 41. Store Environment and Merchandising Mix k) Footwear Department: l)Furniture Bazaar: 1) Sports shoes 1)Dining Table 2) Casual shoes 2) Bedroom Accessories 3) Formal shoes 3) Hall Accessories (Sofa sets, Chairs, 4) Mens sandals Tables etc) 5) Ladies sandals 4) Mattresses 6) Ladies casuals 5)Computer Table 7) Ladies Fancy slippers 6)Wardrobe, Almirah etc 8)Children shoes m)Food Bazaar Beverages: Staples Dept: 1)Soft drinks, 2)Mineral water, 3) 1)Dals, Rice, Wheat, Ragi etc Health drinks, 4) Fruit Juices 2) Atta, Rava items, Sugar, Salt etc Fruits & Vegetables: 3) Cooking Oils, Masala items All kinds of fruits and vegetables at the 4) Dry fruits lowest price. 5) Ready

to cook foods & mixes n) Process Dept: o)Electronic Bazaar 1)Breakfast Cereals 1)Televisions, DVD Players 2) Ready to eat 2) Home Theatre Systems, Audio 3) Corn flakes, Chips, Soups, Bread Systems items, Pickle 3) Refrigerators 4) Instant mixes 4) Washing Machines 6) Spreads 5) Microwave Owen 6) Mixers, Irons & Grinders This is complemented by cafes, food stalls, entertainment, personal care and various beauty related services. Promotions and events are an integral part of Big Bazaar service offering to customer, which helps Big Bazaar create a unique shopping experience. Competitor: Big Bazaar faces competition from other retailers of similar products and H R Institute of Higher Education, Hassan 41 42. Store Environment and Merchandising Mix services. These include stand alone stores in the organized and unorganized sector, as well as other chains of stores including department stores. Big Bazaar focus on offering customers a vast variety of products and services catering to their diverse requirements and needs. It is because of this and the service and ambience that Big Bazaar offer, that Big Bazaar believes Big Bazaar have been able to create a differentiation in the mind of the customer vis--vis our competitors where similar products and brands are available. Competitors for Big Bazaar: 1. Food World 2. Reliance Fresh 3. More 4. Other stores Objectives of the company: 1. To carry on the business of manufacturing, buying, selling, exchanging, altering, importing, exporting, distributing or otherwise dealing in ready made garments an hosiery made of cotton, silk, rayon, wool, nylon, man-made fabrics, polyester, canvas, jute, leather, any other fabric coated with any chemical or not, or other preparation and other fabric. 2. To carry on the business of manufacturing, processing, dyeing, bleaching, buying, selling, exchanging, importing, exporting or otherwise dealing in yarns and textiles made of cotton, silk, rayon, wool, nylon, man-made fibres, polyester, canvas or any other substances. 3. To carry on trade or retail business in India through retail formats and including but not limited to hyper markets, super markets, mega stores/discount stores, cash & carry, departmental stores, shoppers plaza, direct to home, phone order and mail order, catalogue, through internet and other forms and multi level channels for all products an services, dealing in all kinds of goods, materials and items including but not limited to food & provisions, household goods, consumer durables, jewellers, home improvement products, footwears, luggages, books & stationery, health care and H R Institute of Higher Education, Hassan 42 43. Store Environment and Merchandising Mix beauty products, toys and music, computers & accessories, telecom products, agric input products, furniture & furnishings, automobile & accessories, and acquiring and running food, service and entertainment centres including but not limited to multiplexes, cinemas, gaming centres, amusement parks, restaurants and food courts and acquiring of land or building on lease or freehold or any commercial or industrial or residential building for running and management of retail business and to acquire flat GROUP VISION AND MISSION: Group Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner Group Mission We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost-

conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. Core Values Indians: 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. H R Institute of Higher Education, Hassan 43 44. Store Environment and Merchandising Mix 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. AWARDS AND RECOGNITION 2009 CNBC Awaaz Consumer Awards 2009, Images Fashion Forum 2009, Coca-Cola Golden Spoon Awards 2009 2008 Indian Retail Forum Awards 2008, The INDIASTAR Award 2008 , Retail Asia Pacific 500 Top Awards 2008, CocaCola Golden Spoon Awards 2008, The Reid & Taylor Awards For Retail Excellence 2008 2007 Images Retail Awards, National Retail Federation Awards, World Retail Congress Awards, Hewitt Best Employers 2007, PC World Indian Website Awards Readers Digest Trusted Brands Platinum Awards. 2006 Retail Asia Pacific Top 500 Awards, Asia money Awards, Ernst & Young Entrepreneur of the Year Award, CNBC Indian Business Leaders Awards, Lakshmipat Singhania IIM Lucknow National Leadership Awards, Images Retail Awards , Readers Digest Awards , CNBC Awaaz Consumer Awards, Reid & Taylor Awards for Retail Excellence 2005 Images Retail Awards 2005, DAKS London 2004 Images Retail Awards 2004 , Reid & Taylor and DLF Awards 2003 Indian Express Award MYSORE BIG BAZAAR SUPER CENTRE ACHIEVEMENTS Best store award in south zone two times Best look and feel Best electronic department H R Institute of Higher Education, Hassan 44 45. Store Environment and Merchandising Mix ORGANISATION STRUCTURE: Big Bazaar organization is headed by our Managing Director. It follows an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encouraged to think customer first. They are empowered to run their respective departments like small business owners FUNCTIONAL DEPARTMENT: Board of Directors Managing Director Head Head Retail Head Head Risk Business Projects Operations Manage ment Head Chief-Finance Head- Head Marketin & Company human information g resources technology H R Institute of Higher Education, Hassan 45 46. Store Environment and Merchandising Mix Organization Structure of Big Bazaar Super centre Store manager Asst store manager Dept manager Human Sal resource Info es manager ma Asst dept, nag manager Secur er Customer Visual ity service dept merchandising Team Cashi leader ers Asst Dm Administratio n Marketing Team member Maintenanc e House keeping H R Institute of Higher Education, Hassan 46 47. Store Environment and Merchandising Mix The significant features of Big Bazaar Super centre: 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 Bazaar or the grocery store with the department selling fruits and vegetables. There is a zone specially meant for the amusement of the kids Furniture Bazaar or a large section

dealing with furnitures Electronics Bazaar or the section concerned with electronic goods and cellular phones. 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. Will provide better offers on all its products in the entire year. 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 the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - thats what we guarantee. With the ever increasing array of private labels, it has opened the doors into 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. Big Bazaar plans to add much more to complete your shopping experience. H R Institute of Higher Education, Hassan 47 48. Store Environment and Merchandising Mix SWOT ANALYSIS: Strengths:- EDLP [ Every Day Low Pricing] Point of Purchase promotions Experienced marketing team & executive staff. Strong culture, ethics and values are followed Emphasis on providing total customer satisfaction High brand equity in evolving retail market State-of-the-art infrastructure of big bazaar outlet 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 Weakness:- Failing revenue/ Sq.ft Unable to meet store opening targets. General perception. Unavailability of popular brand items with regard to clothing. Opportunities:- Population of the country is growing where the scope of market is kept on increasing for the retail sector. Organized Retail, presently nearly 5% in India so it acts as a great opportunity to the organization for its growth. Evolving consumer preferences. H R Institute of Higher Education, Hassan 48 49. Store Environment and Merchandising Mix Economy is developing as the employment opportunities are increasing and the income of the people is also increasing which increases life standards of people. Threats:- Stiff Competition 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 H R Institute of Higher Education, Hassan 49 50. Store Environment and Merchandising Mix REVIEW OF LITERATURE Merchandise mix and the store envirnoment present in any retail store greatly influences the customer satisfaction level and the customer perception towards that store. Merchandising is one of the hot issue in todays retail competition world which is very important for all the retail store to follow that. This study was done to know that, do customers are really satisfied with the merchandising Mix present in the Big bazaar and also to find out how the store envirnoment influences the shopping behaviour of the customer and to know which section in the Big bazaar have good merchandising mix and to know how the store environment can be improved. Role of analysis: 1). The merchandising mix i.e. product variety , assortment and units are neutrally satisfied the customer . 2). Customer does not finding all the brands that they expected in the Big bazaar especially in the apparel section. 3). Customer are more satisfied with the merchandising present in the food bazaar and house hold utensils. 4). Customers shop

more in food bazaar than any other section. 5). The store envirnoment like fixtures, fitting rooms , rest rooms , customer movement have to improved to increase the customer satisfaction level. 6). The customer are dissatisfied with the external environment like parking areas. 7). The customers are more satisfied with internal environment than the external environment. MERCHANDISING: H R Institute of Higher Education, Hassan 50 51. Store Environment and Merchandising Mix The primary function of retailing is to sell merchandise. One of the most aspects of the retail business is to decide the merchandise mix and quantity to be purchased. Merchandise management is the process by which a retailer attempts to offer the right quantity of the right product at the right place and time while meeting the retail firms financial goals. Merchandise management is the analysis, planning, procurement, handling and control of the merchandise management. Merchandise analysis expects retailers to identify the target segment prior to determining their needs in order to buy the required merchandise. Merchandise planning consists of establishing objectives and devising plans for obtaining merchandise well in advance of the selling season. Merchandise control involves designing the policies and procedure in order to determine whether the stated objectives or goal have been achieved. Planning is the process of establishing performance guidelines, whereas control is the process of checking how well a management is following those guidelines. The objectives range from the corporate strategies objectives in the micro level objectives regarding the merchandising assortment, stocking, and re-order. The merchandising mix represents the full range of mixture of products a retailer offers to its target consumers. Developing the merchandising mix provides a retailer with one of the means to segment the total market and appeal to a select group of consumer segments. Merchandise mix management covers decisions on a host of key parameters, such as merchandise variety, assortment, and support. This would lead to an appropriate combination of product lines, product items, and products units. Merchandising variety is the number of different products lines that a retailer stocks in the store. Merchandising assortment refers to the number of different product items, the retailer stocks within a particular product line. Merchandise support H R Institute of Higher Education, Hassan 51 52. Store Environment and Merchandising Mix deals with the planning and control of the number of units the retailer should have on hand to meet the expected sales for a particular product. The merchandising mix represents the full range of mixture of products a retailer offers to its target consumers. Developing the merchandise mix provides a retailer with one of the means to segment the total market and appeal to a select group of consumer segment. Merchandise mix management covers decisions on a host of key parameters, such as merchandise variety, assortment, and support. This would lead to an appropriate combination of product lines, product items, and products units. Merchandise variety is the number of different product lines that a retailer stock in the store. Merchandise assortment refers to the number of different product items the retailer stocks within a particular product line. Merchandise support deals with the planning and control of the number of unit the retailer should have on hand to meet the expected sales for a particular product. Merchandise budget is a financial tool for planning and controlling the retailers merchandise inventory investment. Merchandising mix Variety Assortment Support CRITERIA OF MERCHANDISE CLASSIFICATION: 1. Unit value

2. Significance of each individual purchase to the customer H R Institute of Higher Education, Hassan 52 53. Store Environment and Merchandising Mix 3. Time and effort spent in purchasing by consumers 4. Rate of technological change( including fashion change) 5. Technical complexity 6. Consumer need for service(before, during or after the sale) 7. Frequency of purchase 8. Rapidity of consumption The variety of the merchandising mix refers to the number of different merchandise lines that the retailer stocks in the store or department. Such lines are mens wear, womens wear, children wear, clothing, toys, appliances, and house hold goods. STORE ENVIRONMENT: Store environment is critical to a retailer, because it directly affects consumers'' total shopping experience. It is also a determining factor in affecting consumers'' store choice decision for shopping. Hence, the management of the physical environment is considered as an important element in contributing to retail financial success and a valuable shopping experience for the customer. The store ''atmosphere'' is defined as the effort to design buying environments to produce specific emotional effects in the buyer than enhancing purchase probability. In- store environment stimuli are positively related to the level of pleasure experienced in the store. Pleasure refers to the degree to which the consumer feels good and satisfied in the store environment. Satisfaction can help consumers to identify that a store is worthy of their loyalty. Atmospherics is referred to as a stores physical characteristics that are used to develop the retail unit image and draw customers. It describes the physical elements in a stores design that appeals to consumers and encourages them to buy. H R Institute of Higher Education, Hassan 53 54. Store Environment and Merchandising Mix Atmospherics can be classified in terms of exterior and interior atmospherics. Exterior atmospherics refers to aspects like store front, display windows surrounding businesses, look of the shopping centre, etc. It is considered important to attract new customers. Interior atmospherics refers to aspects like lighting, colour, dressing room facilities, etc. It helps to enhance the display and provides customers with relevant information. Exterior Atmospherics: Exterior atmospherics refers to all aspects of physical environment found outside the store. It significantly affects store traffic and sales. It is generated by all aspects of the store exterior. Store exterior includes store entrances, main board, marquee, windows, lighting, etc. Storefront of very retail store exhibits a specific image such as traditional, up market, or discount store to the shopper. In competitive markets, retailers can use the storefront as a strong differentiating factor and attract and target new customers. Storefront is an important decision criterion for the new shoppers in unknown retail markets. Even many small town retailers try to balance and harmonize the various aspects of their store design including the storefront with consistent colours and nature of wood work. Elements of Exterior Atmospherics: Store front Visibility Marquee Uniqueness Entrances Surrounding stores Display windows Surrounding area Height of building Parking facilities Size of building H R Institute of Higher Education, Hassan 54 55. Store Environment and Merchandising Mix Four key aspects of exterior atmospherics retail store entrance, display windows, marquee or signboard, and parking facilities are discussed below. Interior Atmosphere: Interior atmospherics refers to all aspects of the physical environment found inside the store. Interior atmospherics affects sales, time spent in the store, and approach/ avoidance behaviour of the target segment. Point-ofpurchase interaction and retail unit. Some key ingredients of interior atmospherics are

flooring, music, interior store design, level of cleanliness, etc. The layout and design of a retail centre and store (e.g., traffic flow, allocation of floor space, layout of merchandise, passages, aisle, traffic patterns, etc.) have been found to affect unplanned purchases and perceptions of price value. A stores physical environments have an influence on shopping behaviour of customers through mediating emotional states. The retail unit environment contains various stimuli that might be perceived by the customers senses and each stimulus offer many options with regard to shopping behaviour. For example, store music varies by volume, tempo, pitch and texture, and by the specific songs played. In addition, various individual stimuli can be combined to create a unique atmosphere. Interior Store Design Conventional retailers design their stores in ways that produce specific emotional effects on shoppers, which in turn influence their shopping behaviour in favour of the retail store. Gosh (1994,) defines retail atmosphere as the psychological effect of feeling created by a stores design and its physical surroundings. Furthermore, retail store image is one of the most powerful components of retail positioning strategy and one of the most powerful tools in attracting, influencing, and satisfying consumers. A retailer or manager is expected to design or redesign a store, with an objective of influencing customers preferences, buying decisions, and shopping behaviours. Retail store design covers store layout and space planning details issues. It is a well-known fact that store layout decisions certainly determine the issue of the amount of time that customers spend for shopping. H R Institute of Higher Education, Hassan 55 56. Store Environment and Merchandising Mix Interior design of stores is evolved by an intelligent combination of the following factors: Flooring Colours Lighting Scents, sounds Fixtures Wall textures Temperature Width of aisles Dressing facilities Vertical transportation Dead areas Personnel Self service Merchandise Prices (levels and displays) Cash register placement Technology/modernization Cleanliness Store Layout: Store layout refers to the interior retail store rearrangement of departments or groupings of merchandise. It is important of entailers to evolve a customer-friendly layout. This involves paying adequate attention to factors such as expected movement of the customers visiting the store and space allotted to customers to shop, and making adequate provision for merchandise display. These concerns are important as they contribute to the capital cost of the retail firm and also the overall image of the store. Customer-friendly store layout is likely to motivate the shoppers to move around the store and shop more than what they had planned for. In India, many of the independent retailers have no or limited provision for customer movement within a store. Merchandise is displayed on the shelves and some beyond the vision of the customers. These are provided to them across the counter on request. For some of the smaller stores, at times, counters are placed at the store entrance. This is very common practice H R Institute of Higher Education, Hassan 56 57. Store Environment and Merchandising Mix with kirana stores, garment stores, and medical stores. An example of such a store is Subhiksha. It reduces operational cost, wastage of space, and theft. This is in consonance with their strategy of providing merchandise at low prices to their customers. On the contrary, many organized retail firms provide sufficient space within the store for customers and create a layout to facilitate a specific pattern of traffic movement. In most of the stores customers expect comfortable space for movement and selection of goods they wish to buy or evaluate. Store layout depends on the kind of merchandise display planned by the retail

management within the store. The placement of racks and shelves within the store determines the natures of space left for the customers to enjoy and organize their shopping. Too many racks and Shelves in the store placed in a disorganized manner confuses the customer, makes it difficult for him to locate a particular merchandise, and hinders the movement of sales people and customers. Ambient and social elements in the store environment are more likely to affect consumers to make inferences about merchandise and service quality. The ambient factors of a store refer to the background character of the environment that tends to influence consumers at a subconscious level; this includes elements such as temperature, lighting, music etc. Ambient conditions are especially noticeable to consumers. Undesirable ambient conditions can cause dissatisfaction if the attention of the consumer is heightened. The store design factor such as functional elements that include layout, merchandise display, architecture, materials and colours can contribute to customers purchase decision. The social factor also plays an important role where ''service manners of sales people'' as well as ''number of people in the store'' are considered important. The services are intangibles, therefore their quality is difficult to be evaluated by the client and building a strong brand image is a challenging task. The services are distributed using diverse channels such as: company retail stores, dealers, franchise. The service Companies are interested in the environment of the location, not only to increase sells but also in order to boost the image of the company. The excitement that a retail store induces to a client can modify the perception of the brand. The client values more a brand that distributes its services in a luxury, high-tech retail environment than a discount store. In this paper we intended to investigate the techniques that a service H R Institute of Higher Education, Hassan 57 58. Store Environment and Merchandising Mix company is using to enhance the brand image in retail Location. For this purpose, the various aspects of the retail store design and environment were analyzed in connection with the customer-based brand Equity model. This original association will offer the services companies new Perspectives on how to leverage brand image. The design and environment of the retail store represent the aggregate elements which determine the style of the material framework of the location and create a special atmosphere for the client. The creation of a favourable environment is an art which requires considerable financial and time efforts. Once created, the general atmosphere is not easily modified. To the service companies, the physical atmosphere and the manner in which operations are done by the front office staff play an important role in the creation of a specific institutional image and in the creation of the experience the Client is going to live. The environment in which the service is marketed, highly Influences the purchasing behaviour by representing: a) A support to the Message transmitted to the public, in order to communicate the nature and Quality of the proposed service; b) A discriminating factor towards the competing companies. c) An incentive aiming at achieving the desired objectives, through the use of colours, materials, sound and locative effects. The environment in which services are marketed is often considered by the client as a reflection of the quality of the companys services, Thus the Companies make efforts to stimulate this quality with the purpose of acquiring a strong brand image. Consequently, the environment of the retail store modifies the perception on the quality of the distributed services. The client attributes a superior quality to products which are marketed in an opulent, luxurious location, as opposed to those marketed in an environment which suggests a discount atmosphere .Marketing specialists have looked.

To establish, to evidence the connection between services environment and clients behaviour. A known model is the one developed by Mary Jo Bitter, regarding services environment, the services cape model. It describes the general atmosphere, space organization and the functionality of signs and symbols. H R Institute of Higher Education, Hassan 58 59. Store Environment and Merchandising Mix As individuals tend to perceive these Dimensions in a global perspective, the key to effective scenery stands in making these dimensions suitable and interconnecting them, Following the contact to the general scenery, a series of internal reactions result , respectively, cognitive reactions such as the perception of quality, establishing categories, emotional reactions such as feelings or attitudes and psychological reactions: pain, comfort. These interior reactions give birth to behaviours such as avoiding a too crowded supermarket or, on the contrary, spending an extra sum of money to chose a mobile phone, in a retail store of a mobile phone company. Ambiance dimension Internal responses Behaviours Exterior design: Architectural style; Parking; Label . Interior design: Aspect of walls, Ceiling and floor; Illumination of the store, Sound background, Locative elements, Interior temperature. Space organization and functionality, Location; Equipments; Furniture. Signs, Symbols Indications; Signalling; Decorations. Cognitive: Beliefs; Classifications; Symbols. H R Institute of Higher Education, Hassan 59 60. Store Environment and Merchandising Mix Emotional: Feelings; Attitudes. Psychological: Suffering; Comfort; Well-being. Closeness: Affiliation; Exploring; Satisfaction. Within our research approach we will analyze the manner in which the retail store environment helps in the creation and stimulation of the Companys brand image. The elements of the general atmosphere are implemented by companies with the immediate purpose of creating a pleasant atmosphere and of boosting Sales, and aim, in a smaller extent, ambitious objectives such as the correlation with the dominant values of the brand. However, if they are properly used, the elements of the general Environment can contribute to the leverage of brand image. Building a brand image is a difficult, complex, sensitive process. For our study we will use the customer- based brand equity model. The CBBE model approaches brand value from a customers angle. The basic assumption of this model is the fact that brand power is based on what customers have learnt, felt, seen and heard about a brand, following their experience with brand. Respective brand along the time In other words, brand power lies in the consumers mind Keller defines the customer-based brand assessment as the differentiated effect label knowledge has on consumers response regarding the marketing activities of the respective Company. Building a successful brand from the angle of the CBBE model is accomplished in a series of four stages, the passing from one stage to another occurring when the objectives. H R Institute of Higher Education, Hassan 60 61. Store Environment and Merchandising Mix Previously had in view have been reached the four stages are: Clients must know the brand, to associate it with a product or service (brand identification); Clients must be aware of all the brand senses by associating tangible and intangible elements with certain properties (brand significance); Obtaining the desired response from the clients (reaction towards the brand); Turning this answer into an intense, active, loyal reaction between customer and brand (brand connection). The CBBE model may be represented under the form of a pyramid; the left side represents a more rational way as regards brand building, while the left side

represents a more emotional approach. The most powerful brands have been consolidated in both ways. Resonance (Loyalty, Commitment, community) Reasoning (Consideration, quality, Credibility, superiority) Feelings (Love, fun, security, Social acceptance) Performance (Basic characteristics, Reliability, service efficiency, Design, price) Imagery (User profile, personality and values, purchasing experience) Brand recognition (Associations, classifications, identifications) Impact of exterior design Elements: This category includes exterior Design elements, interior design elements and the decoration of the retail store category of exterior design elements there is the architectural style of the building, the size of the building, the exterior colour, the material of the exterior walls and other signs, the faade of the store, the parking lot, the space in front of the store. Architectural style and exterior: H R Institute of Higher Education, Hassan 61 62. Store Environment and Merchandising Mix The location of marketing a service must find a place on the more and more crowded streets of the great cities or within commercial galleries in supermarkets. Consequently, in both Cases the predominant pattern is that of renovated buildings, with modern glass facades having a double purpose: to create the impression of modern and, at the same time, to contribute to the increase in services tangibility, through the view of the way in which operations proceed inside. The possibilities of personalization are limited in this field by the existing urbanism regulations. The imposing presence of the services companys logo and its name can be present or not. If possible, the activity can occur at the ground floor of a historic building, having an architectural style specific for a certain period, which confers an extra charm. From the point of view of the CBBE model, the architectural style and the exterior aspect contribute to the formation and strengthening of the feelings towards a specific brand: it deals with social approval which consumers receive following their presence in a recently opened store or in a fashionable restaurant. Moreover, the brand also obtains a positive answer from the part of rational arguments, in the sense that a modern location can induce the appearance of quality and credibility. Furthermore, a remarkable logo can contribute to brand recognition, as it helps customers to remember it every time they pass by the respective retail store. Parking lot: When they exist, are sufficient and adequately disposed, parking lots may be ignored by customers. However, if they are insufficient or if the access to and from them is done with difficulty, clients may think whether to enter in contact with this retail store or with another. Parking lots can be classified in the category of representations or of performances. In the first case, the pleasant experience of shopping will make brand selection process easier in. The second instance, the efficiency of solving a problem, of satisfying an unsatisfied necessity determines the customer to positively consider, appreciate a brand. As a rule, customers complain about parking lots to other customers, more often than to those responsible with the retail store. Moreover, the working personnel may not observe the lack of parking lots, as, being the first to arrive at work; they block the lot during all program hours. Interior design elements: H R Institute of Higher Education, Hassan 62 63. Store Environment and Merchandising Mix Interior elements are numerous and refer to multiple aspects: the aspect of walls, of the ceiling and floor, as well as the materials with which they are covered/papered; the manner in which the store is enlightened, the sound background, locative elements, interior temperature, These interior design elements help creating positive feelings towards the brand. Some interiors may suggest a sensation of tranquility, relaxation, for instance the interior of a spa, a recuperating,

relaxation and massage centre decorated with numerous plants and a cascade. Other brands suggest the possibility of entertainment, for instance Disneyland. The feeling of security, too, is enhanced in the case of a bank subsidiary monitored by video cameras. In the case of existing flat screen TVs that present different programs, advertising spots or just ambient images, customers are induced a feeling of maximum intensity living, Which may generate loyalty, especially from the young? As services are intangible, a good Way of making them tangible is through design and interior atmosphere. From this point of view, customers look for brand meanings at the level of performances, materialized through the interior style and design. Associated to certain scenery, music may have a powerful effect on perceptions and behaviours. ROLE OF STORE ENVIRONMENT IN RETAIL STRATEGY: Enhances the image of the retail outlet Attracts new customers Generates excitement Facilitates easy movement inside the store Facilitates access to merchandise inside the store Ensures optimum utilization of retail space Ensures effective and desired presentation of the merchandise Reduces product search time for the customer Reinforces the marketing communication of the outlet Influences the service quality experience. Immediate effects of retail unit environment: H R Institute of Higher Education, Hassan 63 64. Store Environment and Merchandising Mix 1). Pleasure/ displeasure: is the termed as effectual reaction of the shoppers in service environment. This entails whether shoppers have perceived the environment as enjoyable or unenjoyable. 2). Arousal: assesses the extent to which the environment stimulates the shoppers in a particular environment. Playing slow instrumental music may result in subdued activity level from customer in service settings such as restaurants, compared to no music or fast music 3). Dominance: that concerns whether customer feel dominant or submissive in the service environment. This is a feeling that could be related to environmental aspects like the height of the ceiling that makes one feel small. Methodology TYPE OF RESEARCH: Descriptive method has been used in this research for the collection of data .As the research is related to the study of consumer behaviour, which can more effectively be studied through direct question, experimental research will not be much effective. Also, considering the constraint, descriptive research is the most suitable design for this research. Qualitative research Qualitative research allows you to explore perceptions, attitudes and motivations and to understand how they are formed. It provides depth of information which can be used in its own right or to determine what attributes will subsequently be measured in H R Institute of Higher Education, Hassan 64 65. Store Environment and Merchandising Mix quantitative studies. Verbatim quotes are used in reports to illustrate points and this brings the subject to life for the reader. However, it relies heavily on the skills of the moderator, is inevitably subjective and samples are small. Techniques include group discussions/workshop sessions, paired interviews, individual in-depth interviews and mystery shopping (where the researcher plays the role of a potential student, etc in order to replicate the overall experience). Quantitative research Quantitative research is descriptive and provides hard data on the numbers of people exhibiting certain behaviors, attitudes, etc. It provides information in breadth and allows you to sample large numbers of the population. Descriptive research: Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the

correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time . Statement of the problem. Identification of information needed to solve the problem. Selection or development of instruments for gathering the information. Identification of target population and determination of sampling procedure. Design of procedure for information collection. Collection of information. Analysis of information. Generalizations and/or predictions. SOURCE OF DATA: H R Institute of Higher Education, Hassan 65 66. Store Environment and Merchandising Mix Data which is collected for the first time is called primary data. In the study primary data includes the data which is collected from the customer directly with interaction. The study includes data got with personal interaction. Primary and Secondary data: The appraiser or market analyst must know what they are and what affects them. All data used in appraisals and market studies should be current, relevant, reliable, accurate, and conceptually correct. This article presents a discussion of each of these terms and their significance in the context of the data and in the analysis. The article then discusses the nature of potential errors that can affect primary and secondary data. Several categories of errors can exist. The analyst needs to be able to recognize the error, understand its significance and evaluate the applicability of that data in the analysis. Secondary data--Information from secondary sources, i.e., not directly compiled by the analyst; may include published or unpublished work based on research that relies on primary sources of any material other than primary sources used to prepare a written work. Secondary data has been gathered by others for their own purposes, but the data could be useful in the analysis of a wide range of real property. In general, secondary data exists in published sources. Primary and secondary data are used in appraisals, highest and best use studies, market analysis sections of appraisals, and full-scale market studies. A conceptual link between these two types of data and their use appears in the "Levels of Study" discussion presented in the Appraisal Institute's Course 520, "Highest and Best Use and Market Analysis" and in Chapter 2 of Market Analysis for Valuation Appraisals, which is published by the Appraisal Institute. A detailed discussion of this relationship appears later in this paper. Methods for Obtaining Primary Data: The analyst can obtain primary data through the process of direct observation or by explicit questioning of people. Observation: H R Institute of Higher Education, Hassan 66 67. Store Environment and Merchandising Mix Observation as a data gathering technique focuses attention on an observable fact or inanimate entity such as a building or on an observable action or behaviour by an animate entity such as a homeowner or shopper. Observation of an inanimate object is the easier of the two activities, but it is not free from error or misinterpretation. Sampling: Sampling is a process of learning about the population on the basis of which sample is drawn. A sample is a subset of a population unit. Sample Design: Sampling is a practice a researcher uses to draw data on people, places, or things to study. Sampling allows statisticians to draw conclusions about a whole by examining a part. It enables us to estimates characteristics of a population by openly observing a portion of the entire population. The whole that the researcher wants to know something about is the population is called a sample. SAMPLING TECHNIQUE: The sampling technique used in the study includes both simple random sampling as well as judgment sampling. Respondent Size: 100 Tool for data collection: Structured questionnaire Geographical area: around big bazaar, & those who are enter the

store. Data collection instrument The primary data collection instrument for the survey is self administrated and structured questionnaire which consists of preference and scaling questions. This method of data collection is quite popular, particularly in case of big enquires. The questionnaire consists of close-ended and open ended questionnaire. The study includes questionnaire of 17 questions to determine the store environment of the Big Bazaar and the merchandising in the Big Bazaar. The modes of data collection: Interviewing face-to-face H R Institute of Higher Education, Hassan 67 68. Store Environment and Merchandising Mix Interviewing by telephone Remote self-completion e.g. postal, internet. Face-to-face and telephone interviewing are often computer-assisted (CASIC). The amount The complexity The quality of the data they can collect Interviewing is the most powerful mode in all these respects. But interviewing, particularly in the field, is also by far the most expensive. Choosing modes of data collection is a fundamental survey design decision. When survey aims are being defined in detail, strengths and limitations of modes must be kept in mind. DATA ANALYSIS AND INTERPRETATION Questionnaire to the customer who shop at the store: 1. Do you frequently visit shops at Big Bazaar super centre? Table: 1 Response No of customer Yes 72 No 28 Chart 1: H R Institute of Higher Education, Hassan 68 69. Store Environment and Merchandising Mix Inference: From the above chart we can ascertain that majority of customers i.e., around 72% of customers frequently visits to the store and 28% of the customer visits the store rarely. 2. How frequently do you shop at Big Bazaar super centre? Table:2 Response No of customer Every week 16 Once in two week 24 Once in three week 34 H R Institute of Higher Education, Hassan 69 70. Store Environment and Merchandising Mix Once in a month 26 Chart 2: Inference: From the above table we can analyze that the majority of the customer i.e. 34out of 100 customer visits store once in three week , followed by 26 customer once in a month. Thus we can say that majority of customer visit big bazaar once in three week, may be during weekends. We can conclude that the customer do not visit Big Bazaar for their petty daily purchase, they are visit to other stores 3. Why do you shop at Big Bazaar super centre? Table: 3 Reason No. of customers Low price 42 Product variety 26 Quality 08 Location 24 Chart 3: H R Institute of Higher Education, Hassan 70 71. Store Environment and Merchandising Mix Inference: From the data collected we can determine that most of the customer visits the store by perception that product are low price i.e. 42% and 26% for the product variety and 24% for the location. From this we can say that Big Bazaar have expand their product variety.and other 8% of the consumers are visit seeking the quality. 4. Do You feel that you find different variety of products in Big Bazaar super centre? Table: 4 Response No of customer Yes 69 No 31 Chart 4: H R Institute of Higher Education, Hassan 71 72. Store Environment and Merchandising Mix Inference: From the data collected , we can conclude that majority of the customer that is 69 customer out of 100 customer said that they find different variety of product in Big Bazaar and 31 customer said they dont. 5. Do you find the specific brand that you look in the Big Bazaar super centre? Table: 5 Response No of customer Yes 57 No 43 Chart 5: H R Institute of Higher Education, Hassan 72 73. Store Environment and Merchandising Mix Inference: Here from the above pie chart, 57 customer said that they find specific brand that they look in Big Bazaar and 43

customer said No, from this we can conclude that Big Bazaar have different variety of product not that much variety of product and they have to rethink about the brand available in their store and they have to expand their brand availability. 6. How much time do you spend while shopping at Big Bazaar super centre? Table: 6 Response No of customer 30-60 minutes 22 1-2 hrs 18 2-3 hrs 34 H R Institute of Higher Education, Hassan 73 74. Store Environment and Merchandising Mix Above 3 hrs 26 Chart 6: Inference: From the chart , we came to know that 34 customers out of 100 customer shop up to the period of 2-3 hours and by 26 customer shop up to the duration of above 3 hrs , this means Big Bazaar have more product to shop. 7. Which section do you visit first when you enter Big Bazaar super centre? Table: 7 Response No of customer Food bazaar 46 Apparels 16 Household utensils 28 Electronic section 10 H R Institute of Higher Education, Hassan 74 75. Store Environment and Merchandising Mix Chart 7: Inference: Most of the customer who visits to the Big Bazaar, would like to visit to the food bazaar first which means it shows customer preference towards food bazaar and followed by House hold utensils. 8. In which section do you spend more time while shopping? Table: 8 Response No of customer Food bazaar 42 Apparels 19 Household utensils 29 Electronic section 10 H R Institute of Higher Education, Hassan 75 76. Store Environment and Merchandising Mix Chart 8: Inference: From the above chart , we can analyze that the customer spend more time in food bazaar than any other section , which shows that food bazaar has different variety of product that can customer buy. Next customers prefer households, next prefer to apparels, and lastly electronic section. 9. Do you agree that this store has modern-looking equipment and fixtures? Table: 9 Response No of customer Strongly disagree 06 Somewhat disagree 11 Neutral 31 Somewhat agree 47 Strongly agree 05 H R Institute of Higher Education, Hassan 76 77. Store Environment and Merchandising Mix Chart 9: Inference: From the above chart, we get to know that most of the customer is somewhat satisfied with modern fixtures and equipment present inside the big bazaar. 10. This store has clean, attractive, and convenient public areas (restrooms, fitting rooms). Table: 10 Response No of customer Strongly disagree 10 Somewhat disagree 14 Neutral 42 Somewhat agree 24 Strongly agree 10 H R Institute of Higher Education, Hassan 77 78. Store Environment and Merchandising Mix Chart 10: Inference: 42 customers out of 100 customers are neutrally satisfied with the restrooms, fitting and trail rooms, which mean Big Bazaar, can be improved more with theses aspects. 11. The store layout at this store makes it easy for customers to find what they need Table: 11 Response No of customer Strongly disagree 18 Somewhat disagree 36 Neutral 26 Somewhat agree 12 Strongly agree 08 Chart 11: H R Institute of Higher Education, Hassan 78 79. Store Environment and Merchandising Mix Inference : From the above that, we come to know that majority of the customer said that the store layout is not up to the mark, i.e. they are not satisfied with the store lay out present in the Big Bazaar. 12. The store layout at this store makes it easy for customers to move around the store. Table: 12 Response No of customer Strongly disagree 07 Somewhat disagree 13 Neutral 28 Somewhat agree 41 Strongly agree 11 Chart 12: H R Institute of Higher Education, Hassan 79 80. Store Environment and Merchandising Mix Inference : From the data collected with this question, we come to know that may of the responses was somewhat agree that, the

store layout at this store makes it easy for customers to move around the store. 13. Do you think, this store has good parking facilities? Table: 13 Responses Number of customer Yes 82 No 18 H R Institute of Higher Education, Hassan 80 81. Store Environment and Merchandising Mix Chart-13 Inference: From the chart, we conclude that the most of the customer that is 82% are not satisfied with the parking facilities. 14. How is the cleanliness/Hygienic of floor inside the store? H R Institute of Higher Education, Hassan 81 82. Store Environment and Merchandising Mix Table: 14 Response No of customer Excellent 30 Good 18 Ok 42 Bad 10 Chart-14 Inference: From the data collected with this question, 42out of 100 customer to respond about cleaning of store is ok, 10 customer respond is bad, 30 customer is excellent, and 18 customer respond is good , the inside store cleanliness , so to improve the cleanliness inside the store, 15. How is the internal environment of the store? H R Institute of Higher Education, Hassan 82 83. Store Environment and Merchandising Mix Table: 15 Response No of customer Excellent 42 Good 28 Ok 20 Bad 10 Chart-15 Inference From the data collected with this question, we come to know that may of the responses most of the customers responses is excellent, the inside store environment , but still to improve the inside the store environment, 16. How satisfied are you with the background music played inside the store when you are shopping? H R Institute of Higher Education, Hassan 83 84. Store Environment and Merchandising Mix Table: 16 Response No of customer It must 25 Good , can be played 43 sometimes ok 22 it is not needed 10 Chart-16 Inference From the above chart, we can analyze that the customer prefer the playing the music is good in during buy process. And 10out of 100 is respond is bad to playing music during buying goods is to disturbing the customers minds. 17. How do you rate shopping in the Big Bazaar? Table: 17 Response No of customer H R Institute of Higher Education, Hassan 84 85. Store Environment and Merchandising Mix good for shopping 43 good environment inside big bazaar 39 Other 18 Chart-17 Inference : From this table and respones of the cutomer, out of 100, 43 customers are fell to enter good shopping in supercentre, 39 customers fell good enviroment inside the bigbazaar supercentre , and 18 customers fell other resons to enter the bigbazaar supercentre. Findings and suggestions H R Institute of Higher Education, Hassan 85 86. Store Environment and Merchandising Mix From the study done in Big bazaar on the merchandising and store environment, it was possible various aspects some of them include: Big bazaar has following good merchandising mix 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 But in apparels and in electronics section there are no variety of brands , which means people expects more branded items in the store. Majority of the customers expects to have food court and gaming section in the Big bazaar, which can be leads to increase the shopping duration. Most of the people who visits to the stores are of age group between 22-45 age The store environment in Big bazaar is neutrally satisfied to the customer The main dissatisfaction for the customer is in the billing section, which makes them to wait long. The most of the customer who visits to the store are of lower middle class family. The Big Bazaar has no good parking area and convenient public areas. Especially 4 wheelers parking, The most of the customers who visits stores are having income between 1.5-3 lakhs. Inside the store

employees interaction is very less with customers In men ware branded products is not available, it must available of branded products to attract to customers. H R Institute of Higher Education, Hassan 86 87. Store Environment and Merchandising Mix SUGGESTIONS: With the study done in big bazaar it was possible to determine the problem to weak merchandising mix and store environment The following suggestion can be given to Big bazaar, Increase the brand variety in the store Keep the brands like Levis, Wrangler, Adidas in the store. In the ladies apparels increase the new trendy clothes and branded clothes In the electronic section increase different type of product like mp3 players, I-pods, new audio released CDs, some good brands in mixer, iron box etc. The product assortment should increase in the house hold utensils. Store environment like hygienic should be increase. The restrooms, fitting rooms should be still more improved. External environment like parking area should be increase as most of customer refuse to visit to the store mainly because of parking problem. Level parking can be installed. The billing time should be reduced. To improve home delivery service The sign boards to show restrooms and trail rooms should be visible good. and customers wants more trail rooms, The movement of customer should be clearly defined. With these steps taken the customer satisfaction level can be improved. H R Institute of Higher Education, Hassan 87 88. Store Environment and Merchandising Mix CONCLUSIONS: Advantages: Variety: Big Bazaar offers a wide variety of products of different prices and different qualities satisfying most of its customers. Quality: Providing quality at low prices and having different types of products for different income customers is another advantage. Price: As noted the prices and offers in Big Bazaar 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. Location: The location of Big Bazaar has been mainly in the heart of the city or in the out skirts giving a chance to both the City and the people living outside the city to shop. Advertisements: Big bazaar has endorsed very popular figure like M S Dhoni and other famous personalities which has attracted a lot of customers. This has resulted in increase of sale and the outdoor advertising techniques have also helped Big Bazaar. Middle class appeal: Considering the fact that there are a lot middle class families in India, Big bazaar has had a huge impact on the middle class section of India, the prices, quality and sales strategy has helped in getting the middle income groups getting attracted towards Big Bazaar. Attractive sales: Big bazaar has been known for its great sale and great offers. Big bazaar has had long lines of people waiting to get into the store for the sale. Therefore, the sales that Big Bazaar has had has increased sales in a huge way due to the sales and offers, thus this has been one of the main advantages of Big Bazaar. H R Institute of Higher Education, Hassan 88 89. Store Environment and Merchandising Mix Disadvantages: Store layout: The store layout and the assortment of goods is not the best at Big Bazaar, as the quantity of goods sold is more the arrangement and assortment of goods in the store is the greatest. Hence at times customers find it hard to find what they require, this leads to dissatisfaction of customers. Lower quality of goods: As Big bazaar aims more toward the middle income group, the quality of goods is not of the highest quality, and this is sometimes a disadvantage as some would prefer better quality to the price, making customers to search for different places. Does not appeal to the elite: As mentioned above, the main customers are middle income and a few high income groups, The elite do not like to shop

at Big Bazaar as the quality of goods is lower and they would prefer a higher price and get a better brand, this decreases sales from the elite class Not acclaimed for very good service: Big Bazaar is not known for high class service. The staff 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 Consumer Satisfaction: Long queues and lower quality leads to dissatisfaction of customers. Due to factors mentioned above Big Bazaar shoppers are not always satisfied, this is not a positive for the store. Big Bazaar, a part of the Future Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazaar with over 140 outlets in different parts of India is present in both the metro cities as well as in the small towns. H R Institute of Higher Education, Hassan 89 90. Store Environment and Merchandising Mix The customer get all kind of products in the Big Bazaar, 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. Big Bazaar can attract more customers by increasing the product variety, product assortment. They can improve their customer satisfaction level, by providing netter service like home delivery etc. We conclude that Big Bazaar has attracting more number with their product variety and they also improve the satisfaction level of the customer. To improve the store environment and product verity, good merchandising mix inside the big bazaar, to attract the customer, its helps to increase the sales, to improve the good relationship between the employee and consumer, to provide the good service to the customer and in the apparels section to increase the branded goods its also increase the sales. H R Institute of Higher Education, Hassan 90 91. Store Environment and Merchandising Mix BIBLIOGRAPHY BOOKS: 1). PHILIP KOTLER, The principles of marketing, Tata Mc Grew-Hill Publishing 13Th Edition, 2008, page 441-page457 2). Willian.D.perreault, Jr. Basic Marketing E.J.erom.e.mccarthy, 15th Edition. Pages-347, 351-354 3). A.SIVAKUMAR Retail Marketing Excel books publication, 1st Edition Page 91- page105 4). C.R.KOTHARI, Research Methodology New age international publication, 2nd revised edition, page-24, 31-32, 15-67, & 95-105 Web sites: Google Search. www.pantaloon.com www.Futuregroup.com Scribd.com H R Institute of Higher Education, Hassan 91 92. Store Environment and Merchandising Mix ANNUXERES: A STUDY ON STORE ENVIRONMENT AND MERCHANDISING AT BIGBAZAAR: Dear respondent, I am Sukesha .H.K a student of H.R.INISTITUTE OF HIGHER EDUCATION pursuing my 4th semester MBA. As a part of our academic curriculum, I am taking major concurrent project on Store Environment and Merchandising Mix I kindly request you to cooperate in my research work by responding to the questionnaire provided to you. The information gathered will be strictly confidential. We highly appreciate your cooperation in this regard. 1. Do you frequently shop at big bazaar? A). Yes ( ) B). No ( ) 2. How frequently do you shop at big bazaar? A) Every week ( ) B). Once in two week ( ) C). once in three week ( ) D). Once in a month ( ) 3. Why do you shop at big bazaar? A). low price ( ) B). Product variety ( ) C). quality ( ) D). Location ( ) 4. Do you feel that you find different variety of product in big bazaar? A). yes ( ) B). No ( ) 5 How do you feel when entering the Big Bazaar? A) good shopping ( ) B)good environment in side big bazaar( ) H R Institute of Higher Education, Hassan 92

93. Store Environment and Merchandising Mix C) Other ( ) 6. Do you find the specific brand that; you look in the big bazaar? A) Yes ( ) B). No ( ) 7. How much time do you spend while shopping at big bazaar? A). 30-60 minutes ( ) B) 1-2 hrs ( ) C). 2-3 hrs ( ) D) Above 3 hrs ( ) 8. Which section do you visit first when you enter to big bazaar? A). Food bazaar ( ) B). Apparels ( ) C). Household utensils ( ) D). Electronic section ( ) 9. In which section do you spend more time while shopping? A). Food bazaar ( ) B). Apparels ( ) C). Household utensils ( ) D). Electronic section ( ) 10. This store has modern-looking equipment and fixtures A) Strongly disagree ( ) B) somewhat disagree ( ) C). Neutral ( ) D) Somewhat agree ( ) E) strongly agree ( ) 11. This store has clean, attractive, and convenient public areas (Restrooms, fitting rooms). A). strongly disagree ( ) B). Somewhat disagree ( ) C). Neutral ( ) D).somewhat agree ( ) E). strongly agree ( ) 12. The store layout at this store makes it easy for customers to find what they need H R Institute of Higher Education, Hassan 93 94. Store Environment and Merchandising Mix A). strongly disagree ( ) B). Somewhat disagree ( ) C). Neutral ( ) D). Somewhat agree ( ) E). Strongly agree ( ) 13. The store layout at this store makes it easy for customers to move around the store. A). strongly disagree ( ) B). Somewhat disagree ( ) C). Neutral ( ) D). Somewhat agree ( ) E). strongly agree ( ) 14. Do you think, this store has good parking facilities? A). Yes ( ) B). No ( ) 15. How is the cleanliness of floor inside the store? A) Excellent ( ) B) good ( ) C) ok ( ) D) bad ( ) 16. How is the internal environment of the store? A) Excellent ( ) B) good ( ) C) ok ( ) D) bad ( ) 17. How do you feel about playing music inside the store when you are shopping? A) It must ( ) B) good, can be played ( ) C) sometimes ok ( ) D) it is not needed ( ) 18. Your suggestion to the big bazaar for better improvement of store environment: 19. Please fill your personal information: Name: .. Age: Area: . Contact no: Gender: a) Male ( ) b) Female ( ) Marital status: a) single ( ) b) married ( ) Occupation: a) student [ ] b) professional [ ] H R Institute of Higher Education, Hassan 94 95. Store Environment and Merchandising Mix c) Business man [ ] d) Home maker [ ] e) Govt employee [ ] f) any other (please specify): .......... Annual Income: 1) Less than 150000 [ ] 2) 1.5 lakhs 3 lakhs [ ] 3) 3 lakhs - 5 lakhs 4) More than 5 lakhs [ ] 5) none [ ] H R Institute of Higher Education, Hassan 95