CHAPTER - I
As customers tastes and preferences are changing, the market scenario is also changing from time to time. Today's market scenario is very different from that of the market scenario before 1990. There have been many factors responsible for the changing market scenario. It is the customers changing tastes and preference which has bought in a change in the market. Income level of the people has changed; life styles and social class of people have completely changed now than that of olden days. There has been a shift in the market demand in today's world. Technology is one of the major factors which is responsible for this paradigm shift in the market. Today's generation people are no more dependent on haat market and far off departmental stores. Today we can see a new era in market with the opening up of many departmental stores, hyper market, shopper's stop, malls, branded retail outlets and specialty stores. In today's world shopping is not any more tiresome work rather it's a pleasant outing phenomenon now.
My study is based on a survey done on customers of a hypermarket named big bazaar. Big bazaar is a new type of market which came in to existence in India since 1994. It is a type of market where various kinds of products are available under one roof. My study is on determining the customer's demand for big bazaar and the satisfaction level of customers in big bazaar. My study will find out the current status of big bazaar and determine where it stands in the current market.
This market field survey will help me in knowing the present customers tastes and preferences. It will help me in estimating the customer's future needs and wants. As am a marketing student it will definitely help me a lot in my work.
CHAPTER - II
Introduction About the Company
Pantaloon Retail India Ltd (PRIL) has emerged as the leading retailer in India with its chain of Pantaloon, Big Bazaar and Food Bazaar stores. With the right mix of management capabilities, high growth product profile, well-developed strategy and extensive IT and logistics capabilities, PRIL has ensured rapid growth. More importantly, while most organized retailers are struggling to be in black, PRIL has demonstrated a consistent track record of profitable growth.
PRIL has chalked out an aggressive expansion plan to increase its retail space to over 1,740,000 sq.ft. over the next two years. Space for additional 4 Pantaloon's, 11Big Bazaars and 2 Food Bazaar's has already been finalized, and these would be Operational over the next two years. PRIL aims to set up over 30 Food Bazaar's and is scouting for appropriate locations for the same.
After popularizing the concept of hypermarket in India, PRIL is now also setting up a new format shopping mall in the country under the name 'Central'. The format would be on the lines of a Selfridhes in London or a Central Mall in Bangkok. Two malls of 100,000 and 240,000 sq.ft. are being set up in Bangalore and Hyderabad respectively
Diversity of product range will ensure profitable volume growth
To achieve better return on retail space, PRIL uses certain product categories as margin managers and certain product categories to generate traffic. The food and groceries business will act as key volume growth driver while high share of apparel (which account for over 80% sales in Pantaloon Stores and 40% in Big Bazaar) will enable PRIL to maintain high margins. The management has demonstrated its ability to improve stock turnovers in both the formats successfully, which has enabled significant margin improvement.
Fully integrated value chain and own labels give competitive edge
PRIL has a completely integrated value chain in apparels from fabric manufacturing to apparel manufacturing, branding, distribution to retailing. The company controls the total value chain from yarn to apparel retailing hat gives a competitive edge in terms of speed of delivery, lower inventory carrying costs and better realizations. Also, large part of PRIL'sapparel revenues comes from own private labels. PRIL has developed significant competencies in apparel branding over a period of time and has developed own labels (John Miller, Shrishti, Bare, Annabelle, AFL) in all the apparel product categories. Worldwide, private labels give higher margin to retailers than the national brands. Also growth of private labels is faster as retailer controls shelf space and visibility. Other initiatives such as faster turnover of stocks by introducing 6 seasons in a year (against 2 earlier) has helped in bringing down inventory levels and at the same time providing wider choice to customer and improving frequency of customer visits.
High scalability of business model - multiplier effect will set in
Size and scale drive economies on procurement and lower logistics costs, which enables a retailer to deliver better value to customers. The hyper-market format has much higher scalability as compared to the pure apparel retailing format. Also, the potential to expand and scale is virtually unlimited in the food & grocery segment, where efficiencies improve dramatically with scale as the multiplier effect sets in. Food constitutes the largest expenditure item (estimated at over 50%) of an average
Indian's monthly personal expenditure. However, the share of modern retail formats in the Rs6700bn Food & Grocery market is a minuscule 0.3%, revealing the high growth potential in the segment.
New product categories and innovative tie-ups to aid growth
PRIL offers large number of products to the customer to give them better choice for selection. Different product categories have different depth and width in merchandise offering. Besides, PRIL has tied up with Shop-in-Shop partners in its Big Bazaar stores. Some product categories where the company does not have core competency or does not want to invest, but would attract customers are catered through these partners. Eventually, in the long run, the Company may manage some of these product categories on its own as volumes grow and it develops competencies in these businesses.
Shop-in-Shop partners typically pay a fixed rental for their space and share a part of their profits. By expanding the range of product offerings and retail formats, PRIL today has been able to target a much larger share of the consumer's basket (about 70% as against less than 8% in 1994).
PRIL will be adding new product categories to its business in both Pantaloons as well as Big Bazaar stores. Gold, Investment products, White goods and Appliances, Footwear will be the new product categories that will be added. These product categories will help in improving Walk In's into its stores and generate additional business from the existing categories too.
Competition from global players would pose a major threat
Most global retailing majors have been keen on entering into the huge untapped Indian market. However policy restricts Direct Foreign Investment in the sector. There is a high likelihood of the Government lifting restriction on FDI into the retail sector in the near future. Entry of these foreign giants - with significant experience and skills in retail management would increase competition for PRIL. However, we believe that given the widely dispersed and heterogeneous nature of Indian markets, a foreign entrant would find it extremely difficult to establish a national presence. Pantaloon with its early mover advantage and understanding of local markets is well entrenched to retain high customer share.
Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 as Manz Wear Private Limited under the stewardship of Mr. Kishore Biyani. It was converted into a public limited company in September, 1991. The company sold branded garments under Pantaloon, Bare and John Miller brands. PRIL set up its first menswear Pantaloon Shoppe outlet in 1993. The company's name was changed to Pantaloon Retail (India) Limited in 1999, when it made a full fledged entry into the retail segment through the Pantaloons Family Store.
Pantaloon Retail (India) Ltd: Company Snapshot
Pantaloon Retail (India) Ltd. The Company's principal activity is to operate chain retails stores in names of Big Bazaar, Food Bazaar, Central and Pantaloons. The Big Bazaar is the discount store which offers a wide range of products under one roof. The products include apparels and non-apparels such as utensils, sports goods and footwear. The Company also has its presence into gold retailing by launching Gold Bazaar. The Company's Food Bazaar provides a range of food and grocery products ranging from fresh fruits and vegetables, staples, FMCG products and ready-to-cook products. The Central offers a chain of stores including books and music stores, global brands in fashion, sports and lifestyle accessories, grocery store and restaurants. The Pantaloon retail stores focus largely apparels and accessories.
About Pantaloon Retail (India) Ltd
Pantaloon Retail (India) Limited is a leading retailer with a turnover of Rs.1088 crores for the financial year ending June 2005. The company is headquarteredinMumbai and has a presence in Lifestyle Retailing through 18 Pantaloons Stores, 3 Central Malls in Bangalore, Hyderabad and Pune. In Value Retailing it is present through 24BigBazaarhypermarkets,38FoodBazaars and 2 Fashion Stations. PRILhas a national presence with 2.6 million square feet of retail space across 24 cities.
Pantaloon: Fashion by Pantaloon
Pantaloon is the company's departmental store and part of life style retail format. In fact, PRIL took its very initial steps in the retail journey by setting up the first Pantaloon store in Kolkata in 1997. In a short time Pantaloon has been able to carve a special place for it self in the hearts and minds of the aspirational Indian customers. The company has depth of offering for both men and women at affordable prices. A striking characteristic of Pantaloon has been the strength of its private label programme. John Miller, Ajile. Scottsvile, Lombard, Annabelle are some of the successful brands created by the company. With 13 stores across the country and an ever-increasing stable of private brands, Pantaloon - in the coming years is poised to become a leading fashion trendsetter.
Big Bazaar: Is se sasta aur acha kahin nahin
Big bazaar is the company's foray into the world of hypermarket discount stores, the first of its kind in India. Price and the wide array of products are the USP's in Big Bazaar. Close to two lakh products are available under one roof at prices lower by 2 to 60 per cent over the corresponding market prices. The high quality of service, good ambience, implicit guarantees and continuous discount programmes have helped in changing the face of the Indian retailing industry. A leading foreign broking house compared the rush at Big Bazaar to that of a local suburban train.
Food Bazaar - Wholesale prices
Food Bazaar's core concept is to create a blend of a typical Indian Bazaar and International supermarket atmosphere with the objective of giving the customer all the advantages of Quality, Range and Price associated with large format stores and also the comfort to See, Touch and Feel the products. The company has recently launched an aggressive private label programme with its own brands of tea, salt, spices, pulses, jams, ketchups etc. With unbeatable prices and vast variety (there are 42 varieties of rice on sale), Food Bazaar has proved to be a hit with customers all over the country.
Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and which work on Wal-Mart type economies of scale. They have had considerable success in many Indian cities and small towns. Big Bazaar provides quality items but at an affordable price. It is a very innovative idea and this hypermarket has almost anything under one roof....Apparel, Footwear, Toys, Household Appliances and more. The ambience and customer care adds on to the shopping experience.
Is Se Sasta Aur Accha Kahin Nahin !!
What's in store for you at Big Bazaar?
1,70,000 products at 6- 60 % discount.
At Big Bazaar, you will get : A wide range of products at 6 - 60 % lower than the corresponding market price, coupled with an international shopping experience.
If you deal in the categories mentioned there's a big deal of success for you.
Food Bazaar's core concept is to create a blend of a typical Indian Bazaar and International supermarket atmosphere with the objective of giving the customer all theadvantages of Quality, Range and Price associated with large format stores and also the comfort to See, Touch and Feel the products.
'FOOD BAZAAR' a division of Pantaloon Retail India Ltd is a chain of large supermarkets with a difference. It was flagged off inApril'02.With store sizes ranging from 8,000 sq ft to 15,000 sq. ft. in Mumbai (two stores), Kolkata, Bangalore & Hyderabad, it is opening more stores at Gurgaon (Delhi), New Bombay & Nagpur. It currently caters to over 1.2 million customers every day across 4 outlets in India and is soon set to expand and double this figure across 8 outlets all over the country by June 2003.
Food Bazaar offers the Indian consumer the best of Western and Indian values. The western values of convenience, cleanliness and hygiene are offered through pre packed commodities and the Indian values of "See- Touch- Feel" are offered through the "Mandi" atmosphere created by displaying staples out in the open, all at very economical and affordable prices without any compromise on quality. This satisfies the Indian consumer and comforts her before making her final buying decision. At other super markets, the consumer is deprived of this factor.
Truly the Indian consumer now agrees with Food Bazaar: "Ab Ghar Chalaana kitna Aasaan". This positioning platform of Food Bazaar is evident from the higher discounts and the wholesale price-points which is below MRP.
Food Bazaar represents the company's entry into food retail and is targeted across all classes of population. Food Bazaar replicates a local 'mandi', to provide the much important 'touch & feel' factor which Indian housewives are used to in the local bazaar. Food Bazaar has over 50,000 stock keeping units which cover grocery, FMCG products, milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides fruits and vegetables. All products are sold below MRP and discounts range between 2% to 20%. Fruits and vegetables are sold at prices comparable to wholesale prices.
CHAPTER - III
THE Indian consumer could well be crowned King with all economic indicators in the right place. Queuing up for the coronation ceremony are a multitude of global companies that are looking at India as the next consumer market powerhouse. And it seems to be the retail sector that will give the desi consumer royal status.
In this study I will try to find out the present scenario of retail market in India. This project will give focus on the global scene to retail industry and what will drive the growth of industry in the future.
Retailing is the final step in the distribution of merchandise, the last link in supply chain - connecting the bulk procedures of commodities to the final consumers.
Retailing in India is thoroughly unorganised. There is no supply chain management perspective. According to a survey b y AT Kearney, an overwhelming proportion of the Rs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs. 20,000 crore segment of the market is organised.
From a size of only Rs.20,000 crore, the ORGANISED retail industry will grow to Rs. 160,000 crore by 2005. The TOTAL retail market, however, as indicated above will grow 20 per cent annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore by 2005
A study by McKinsey points out that India's market for consumer goods could reach a whopping $400 billion by 2010 - making it one of the five largest in the world. Further, KPMG in a recent report titled `Consumer Markets in India - the next big thing?' has said: "India represents an economic opportunity on a massive scale, both as a global base and a domestic market." The report, however, finds that the next leap in the growth of the consumer market will be spearheaded by the changing dynamics of the retail sector. "Companies expect that the next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that will not be for long," says Deepankar Sanwalka, Executive Director and Head - Consumer Markets, KPMG India.
FDI in retail has once again begun to appear imminent following Prime Minister Manmohan Singh's recent interview to McKinsey, in which he expressed confidence that he would be able to get the Left parties on board on the matter. KPMG is in fact going ahead with its plans to conduct a series of five roadshows in the US and a few countries in Europe to hold discussions about the opportunities in India's consumer markets, especially in retail. And the numbers do lend credence to the enthusiasm.
The Economist Intelligence Unit (EIU) country briefing on India, 2005, estimates the retail market in India will grow from $394 billion in 2005 to $608.9 billion in 2009. In fact, KPMG finds that the organised retail sector in India is expected to grow at a higher rate than GDP growth in the next five years, driven by changing lifestyles, strong income growth and favourable demographic patterns. According to EIU, India currently has more than five million retails outlets, out of which 96 per cent are smaller than 500 sq. ft. But this scenario is changing fast. The structure of retailing is developing rapidly with malls becoming increasingly common in large cities, and development plans being projected at 150 new shopping malls by 2008.
Emerging trends in organized retailing
Over the last five years, a number of large business groups such as Tata's, RPG, Raheja's and Piramal's has set up stores/malls and built businesses within retail. Thesem include the Rs1.9bn Food World - a leading supermarket chain set up by RPG; the Raheja's Rs1.8bn Shopper's Stop - a multi-brand departmental outlet and the Crossroads Mall set up by the Piramal's. While many of these initiatives were initially driven by the need to use existing real estate, they are beginning to assume the contours of a serious business today.
Fuel retailers, notably BPCL and HPCL are also expanding their presence from fuel retail to grocery and convenience stores. Suitability of location, optimal utilization of real estate, diversifying business to reduce reliance on the commodity nature of fuel retail business and improve margins are the key factors that has lead fuel majors to enter into the retailing.
Also, existing family owned businesses are expanding their businesses. The more successful of them are the Nilgiris - a Bangalore base food retailer, Vivek - a 40-year old Chennai based chain selling consumer durables and Narula's - the food chain in North India.
Interestingly, manufacturers are also looking for forward integration and are building chains around brands. Brands in apparel, footwear and durables have driven the growth of specialty chains and upgraded existing multi-brand outlet.
Theme for a mall
Although the retail sector in India highly fragmented and consists predominantly of small, independent, owner-managed shops, it happens to be the country's second largest employer after agriculture. The country is currently witnessing a boom in retailing, thanks mainly on account of an increase in the disposable incomes of middle and upper-middle class households.
More and more corporate houses, including large real estate companies, are now entering the retail business directly or indirectly. One sign of the modernization of Indian retailing is the rapid growth in the number of speciality malls and theme malls. The Piramals, Tatas, Rahejas, ITC, S. Kumar's, RPG Enterprises, Aerens, Omaxe and mega retailers like Crosswords, Shopper's Stop and Pantaloon have taken the lead in organised retailing.
Emergence of specialty retailing
Though organised retailing is still at a nascent stage - accounting for only around two per cent of the $180 billion retail market in India - it is likely to touch 10 per cent by the end of this decade. Four product categories have led the organised retailing wave: foods, apparel, lifestyle products, consumer durables and electronics. In recent times, several theme malls such as Gold Souk (jewellery malls), Wedding Mall, Electronic Mall, Auto Mall, etc catering to specific needs and occasions have been completed or announced.
Many top developers are now toying with the idea of developing speciality malls. Speciality malls are already a success in the West, whereas the concept is in its infancy in India. One could venture so far as to say speciality and theme based retailing will drive the growth of organized retailing in India.
Organised retailing got a leg up during 2004 with the opening of new format stores, rapid growth of existing players, start-up of new-generation shopping malls, the Government's intention of allowing a certain level of foreign direct investment in retail and the formation of a retailers' association. With consumer sentiment positive during most of 2004, it led to substantial spending across a number of categories such as consumer durables, clothing and lifestyle, automobiles and telecom products. At the beginning of this decade, organised retailing accounted for a mere $2.9 billion in India. This is only 1.25 per cent of the estimated total retail market. This share has already grown to 2 per cent.Growth projections for retail business vary widely. Some studies estimate that by 2007, the share of organised retail in the retail pie will jump three times to reach 5-6 per cent.
BIG BAZAAR AT DELHI METRO STATIONS!
First time a Discount Hypermarket opens at a Metro Station
Pantaloon Retail opens 2 Big Bazaars at Wazirpur & Indralok Metro stations in Delhi
Pantaloon Retail (India) Limited, the country's leading retailer, opens 2 BIG BAZAARS in Delhi. The two BIG BAZAARS are located at the Wazirpur and Inderlok Metro Stations respectively. This is the first time a discount hypermarket has opened at a station and Big Bazaar is proud to be the first to offer a never-before shopping experience to the metro commuters. The national tally of BIG BAZAAR is now at 20 taking the total tally of BIG BAZAAR in NCR region to 4.Both BIG BAZAAR, Wazirpur & BIG BAZAAR, Indralok have FOOD BAZAARS within the store. This takes the national tally of Food Bazaar to 32 and total tally of Food Bazaar in NCR to 5.
BIG BAZAAR will provide shoppers with a completely new shopping experience and make available -a range of products for every household need at never before prices Shoppers for the first time will have the widest range of products in every segment - Women's Apparel, Men's Apparel, Accessories like belts and bags, Cosmetics, Gold Jewellery, Kids Wear, Stationary and Toys, Footwear, Plastics and Home Dcor products, Utensils & Home Appliances, Gift Articles, food and grocery items.
Food Bazaar will offer services like 'Live Kitchen' where customers can get vegetables cut and select gravies of their choice, 'Golden Harvest' providing best quality grain, pulses & spices, 'Ready to cook' and 'Hungry Kya' the ready to eat food sections. In addition, regular Food Bazaar offerings of Grains and Provisions, Farm Fresh Fruits & Vegetables, Drinks & Beverages, Dairy Products, Fabric Care products, Music Cassettes and CD's, Chill Station, Home Care Products, Accessories, Kitchen Linen, Kitchen Products, Personal Care Products, Bakery, Mithai & Namkeen etc., will be available at wholesale prices.
On the occasion of the launch, Mr. Kishore Biyani, Managing Director, Pantaloon Retail (India) Ltd., said, "We are very proud to open 2 BIG BAZAARS at the 2 Metro Stations in Delhi. As has been the homemaker's experience across the country, the store is a support to the homemaker's untiring effort of saving the maximum while giving the best to her family. Our opening of the 2 stores in Delhi after the runaway success of the other stores at Noida,Gurgaon & Ghaziabad shows our commitment to this region. It also reflects the love and affection the people of this region have showered on us!"
Living up to its motto of "Is se sasta aur accha kahin nahin", all products in BIG BAZAAR will be available at prices lower than the MRP, often up to 60% discount. In addition to this, various offers, discounts and promotions will be regularly held at the store. The consumer will experience a new level of standard in price, convenience and comfort, quality, quantity, and store service levels. BIG BAZAAR in its true hypermarket model will offer all of the above for both leading brands as also for its private labels.
A layout chart of Big bazaar located at Indralok
- HELP DESK
- KIDS ACCESSORIES
- BABA SUITS
- LADIES TOPS
- TRIAL ROOM
- PILLARS USED FOR DISPLAYING INFORMATION (SIZE CHART, SECTION DESCRIPTION)
- WOOLEN CLOTHS FOR KIDS
- WINTER WEAR
- KIDS CASUAL WEAR
- KIDS JEANS AND SHORTS
- INFANT SHIRTS AND T-SHIRTS
- MEN ACCESSORIES - SUNGLASSES, WRIST WATCHES ETC
- SOFT TOYS
- HOME DECORATIVE ITEMS
- MUSIC COUNTER
- LADIES ETHINIC
- LADIES WESTERN
- LADIES FORMALS(OFFICE WEAR)
- LADIES ACCESSORIES - LINGERIES
- LADIES PERFUMERIES
- LADIES COSMETICS
- SCHEME BASED PROMOTIONAL ITEMS
- CASH COUNTER
- HOME FURNISHING (CURTAIN CLOTHS, CARPETS)
- MEN FORMAL SHIRTS
- MEN TROUSERS
- MEN SUITS AND BLAZERS
- MEN FABRICS
- MEN ETHINICS
HELP DESK - As you can see from the layout, the Help Desk is located in a place where every one has their first sight that is in front of the entrance. This shows that when a person enters in to big bazaar it can get all information about the stores of big bazaar from the person sitting in the help desk. Help Desk uses paging service as a tool for the convenience of its employees and customers.
KIDS SECTION - The kids section is located just at the left corner of the entrance of big bazaar. In the kid's section kid's accessories like diapers, trolleys, suckers, water bottles are available in one part. Kid's jackets and baba suits are available in another part. Kids casual wear (jeans and shorts) are placed in one part of it and infant shirts & t-shirts are also placed in another part. In this section the pillars are used for displaying information like size chart and section description. The apparels are available at a price of Rs59 onwards.
MENS SECTION - Next to it is the men's section that is in the center. It is divided in to five parts. At one part men formal shirts are available. In other parts men trousers, suits and blazers, fabrics and ethnics are available respectively. Here the price ranges from a minimum of Rs99 to Rs899.
LADIES SECTION - Next to it is the ladies section that is in the extreme right side. The ladies section is segregated in to seven parts. Ladies section starts from ladies ethnics, ladies western wear, ladies formals (office wear), ladies accessories - lingerie's, ladies perfumeries, and ladies cosmetics respectively. Here the price of the apparel ranges from Rs99 to Rs1000 approx.
Promotional scheme - With an add on to the above products there are various other products which are available with a promotional scheme. The various products under this scheme includes girl t-shirts, infant winter wear etc.
Non-Promotional scheme - There are various other products available without any promotional scheme which includes jeans, infant baba suits, infant t-shirts, kids night wear, kids salwar suits etc.
Sports Store - At the extreme corner there is a sports store where various kinds of sport items are available.
Food Bazaar - The food bazaar is in the 1st floor of the building. Various kinds of food items, fruits and vegetables are available there. Sitting arrangements are well made so that people can sit and take tea, coffee or snacks or any other food item and can relax.
Cash Counter - The cash counter is located just near the exit
Product Layout Chart
Ground Floor First Floor
1. Ladies Western 1. Fruits and Vegetables
2. Ladies Ethnic 2. Golden Items
3. Saree and Dress Materials 3. Ready to eat
4. Night wear/Lingerie 4. Ready to cook
5. Boys and Girls 5. Sweets and Farson
6. Infants 6. Spices
7. Toys 7. Beverage
8. Men's Formals 8. Confectionaries
9. Men's Ethnic 9. Tea and Coffee
10. Men's Casuals 10.Personal Cars
11. Men's Accessories 11.Plastics
12. Men's Party 12.Utensils
13. Denim and T-shirts 13.Crockeries
14. Sportswear 14.Appliances
16. Home Linen
18. Sunglasses and Watches
BIG BAZAAR AT NOIDA
From today, housewives and compulsive shoppers in Noida need not step elsewhere for shopping. With Big Bazaar, the hypermarket (discount store) from Pantaloon Retail (India) Ltd. opening its first outlet in North India, they have a lot to choose from. Spread over an area of around 50,000 sq ft, Big Bazaar offers a variety of products 2% to 60% lower than the corresponding market price. After consolidating its position in 4 cities - namely Hyderabad, Kolkata, Bangalore and Mumbai (Lower Parel and Mulund), Big Bazaar is all set to win t! he hearts of people in Delhi and Noida.
Speaking at the launch, Mr. Kishore Biyani, Chief Knowledge Officer, Pantaloon Retail (India) said, "The Company was the first in India to launch a hypermarket discount store - Big Bazaar. Seeing the tremendous response, today we are pleased to bring the same excitement to shoppers in and around Gurgaon in the form of Big Bazaar with its variety, discounts and shopping ambience. The main attraction at Big Bazaar is the product variety. The company will stock about 1,70,000 items. In short, there is something for everyone."
Big Bazaar has apparel and accessories for men, women and children besides Cosmetics, Toys, Home Needs, Household Appliances, Gift items, Jewellery, Luggage, Linen, and a lot more.
Food Bazaar, with an area of around 10,000 sq ft is also a part of Big Bazaar offering products at wholesale rates below the MRP. To attract regular bazaar-goers, a mandi has been created within Food Bazaar where Consumers could touch, feel, pick & choose products. This choice has been supplemented by the provision of packaged food for the Westernized shoppers. Food Bazaar will stock around 10,000 stock keeping units (SKUs). These will include provisions, vegetables, fruits and fresh produce, FMCG products, bakery products, basic staples, cereals, pulses, cooking oils, flour, spices, dry fruits, health food, baby food, dairy products, drinks, beverages as well as ready-to-eat and ready-to-cook product! s. There are special purchase offers and discounts worked out with several leading brands exclusively for Food Bazaar customers making shopping at Food Bazaar highly affordable.
CHAPTER - IV
OBJECTIVE OF THE STUDY
Our main objective of the study was to find out the buying behavior of the customers coming in to Big Bazaar.
I had made some extensive objectives for my study which are as listed below.
- To determine the current status of Big Bazaar.
- To find out the customers response towards Big Bazaar.
- To study the satisfaction level of customers in different attributes of Big Bazaar.
CHAPTER - V
Technology and customers tastes and preferences plays a vital role in today's generation. Research Methodology is a set of various methods to be followed to find out various information's regarding market strata of different products. Research Methodology is required for every industrial service industries for getting acquire knowledge of their products.
Period of Study: This study has been carried out for a maximum period of 7 weeks.
Area of study: The study is exclusively done in the area of marketing. It is a process requiring care, sophistication, experience, business judgment, and imaginationfor which there can be no mechanical substitutes.
Sampling Design: The convenience sampling is done because any probability sampling procedure would require detailed information about the universe, which is not easily available further, it being an exploratory research.
Sample Procedure: In this study "judgmental sampling procedure is used. Judgmental sampling is preferred because of some limitation and the complexity of the random sampling. Area sampling is used in combination with convenience sampling so as to collect the data from different regions of the city and to increase reliability.
Sampling Size: The sampling size of the study is 100 users.
Data Collection : - Data is collected from various customers through personal interaction. Specific questionnaire is prepared for colleting data. Data is collected with mere interaction and formal discussion with different respondents
Tools of Analysis : - The market survey and the techniques for marketing and investment of finance is carried out by physically interacting with the potential customers in big bazaar.
Research Design : - The research work is exploratory in nature, and is meant to provide the basic information required by research objectives. It is a preliminary study based on primary data and the findings can be consolidated after a detailed conclusive study has been carried out.
CHAPTER - VI
I have done a market field survey on big bazaar. I have surveyed around 100 respondents of Delhi who come to visit big bazaar. A specific questionnaire is prepared for the customers and data is obtained from them by moving around big bazaar and personally interacting with them. The customers gave me valuable information regarding their consumption pattern in big bazaar. I collected all those information and a proper analysis is done.
All the analysis and its interpretations are discussed below. Each of the analysis is done as per the information obtained from the customers and a serious interpretation has been done to best of my effort.
Income wise distribution of customers coming to Big Bazaar
Higher Income Group 5%
Middle Income Group 50%
Lower Income Group 20%
No Income Group 25%
Analysis: The above diagram shows the distribution of income level of customers coming in to big bazaar. Among the 200 respondents 50% of customers are of middle income level that is between Rs20000 - 60000. Least number of customers visiting Big bazaar are the higher income level people that constitute only 5%. The lower income level of people coming to big bazaar constitutes of 20%. 25% of people belong to no income group which mostly consists of students.
Interpretation: Big bazaar is the hub of shopping for middle level income group people because of its reasonable price on its each product category. The higher level income group people don't prefer to do shopping in big bazaar as it doesn't deal with branded products. The higher level income group people are very status conscious and their psychology is such type that they don't prefer much to visit big bazaar as it is a discounted store. The lower income group people come in to big bazaar as they get goods at a discounted price. Hence big bazaar should include branded products in its product category which will encourage higher income group people to come in to big bazaar. Probably not much of lower income group people come to big bazaar as they don't like to have any shopping experience rather they just go for near by store where they can get their necessity goods. Even they purchase goods on a regular basis on a small quantity. So they don't have much interest to come to big bazaar and do shopping.
Purpose behind visiting big bazaar
Analysis: Out of the 200 respondents 60% of respondents visit big bazaar for shopping, 10% for outing and 30% visit big bazaar for both the purposes.
Interpretation: From this I interpret that big bazaar is purely a shopping complex but it also facilitates a certain kind of ambience and decorum to the people that they also visit it for the purpose of outing. The infrastructure and ambience of big bazaar is so that people even like to go there even also they don't have to purchase anything. People enjoy doing shopping in big bazaar. This is very nice for it as often customers purchase some goods while moving in the building.
Demand for other retail outlets in a mall
Garment Outlet 65%
Footwear Outlet 20%
Food Court 30%
Gift Corner 10%
Jewellery and Watches Store 10%
Analysis: The above graph shows that 65% of people visit garment outlet in a mall other than that of big bazaar. 30% of people also prefer to visit food court in a mall other than big bazaar. 20% of the people go to footwear outlet in a mall other than big bazaar. 20% of people also go to mall for entertainment purpose. Some people that are 10% each also visit gift corner store and jewellery & watches store in a mall other than big bazaar.
Interpretation: From this analysis I come to know that most of the people tend to visit garment outlets in a mall other than big bazaar as it has some exclusive branded outlets. People also go for footwear stores as malls have branded footwear stores in it. People go for watching movies to mall for entertainment. Yet a few people visits gift corners and jewellery stores in a mall. This is of course a threat for big bazaar that it is not able to attract customers from other retail outlets and retain them with it. Big bazaar should definitely include more of branded products in its product category in order to bring in the customers of mall to it and retain them with it. It can include some of the exclusive branded outlets of cloths and jewellery in it in order to attract the brand choosy customers.
Products mostly purchased by customers in Big Bazaar
Food Item 50%
Leather Item 25%
Electronic Item 15%
ift Item 10%
Any other Item 10%
Analysis: This chart clearly indicates that the demand for grocery that is 70% is highest by the customers followed by clothes rated 60%. The next highest demand is for food items that is 50%. 25% demand is for leather items in big bazaar. Electronic items holds 15% of demand and gift items and other items has a demand of only 10% by the customers of big bazaar.
Interpretation: From this analysis I interpret that customers demand are high for grocery and clothes followed by food items in big bazaar. Electronic items have a little demand by the customers. Gift items and other items are not much in demand by the customers. I can interpret that clothes, grocery and food items are the major products which hold maximum number of customers. So big bazaar should maintain its low pricing and product quality to keep hold of the customers and also it should keep more qualitative products of gift and leather items so that people would go for more purchase of these items from it. Big bazaar has many local branded products of grocery and cloths and it is successfully selling it. It should also include branded products so that more sales can take place.
Expenditure pattern of customers coming in to Big Bazaar
Below 500 11%
More than 2000 29%
Analysis: We can clearly see from this graph that majority of the customers spend a lot in big bazaar that is 29% of people spend more than Rs2000 in a single visit to big bazaar. Equal number of people that is 22% of people each spend Rs 1000-1500 and Rs 1500-2000 respectively in a visit to big bazaar.16% of people spend Rs 500-1000 and only 11% of customers are there who spends less than Rs500 in their visit to big bazaar.
Interpretation: From this I interpret that most of the customers purchase goods in bulk which leads them to spend a lot. Volume sales are high in big bazaar. Customers tend to purchase more goods from big bazaar as it provides goods at a discounted rate. Probably those persons who spend more in a visit to big bazaar are purchasing on a monthly basis. Those customers who are spending very less money that is below Rs 500 are mostly coming in just to move around big bazaar and spend time. In the process they used to spend money on food items and also purchase some products while roaming in it. Impulse buying behavior of customers comes in to play to a large extent. More discounts shall be provided to people who does bulk purchase. This will encourage people to purchase more products.
Time spent by customers in shopping in Big Bazaar
Less than half an hour 10%
Half an hour to 1 hour 30%
1 hour to 1 1/2 hours 50%
1 1/2 hours to 2 hours 40%
More than 2 hours 20%
Analysis: People spend a lot of time in shopping in big bazaar. Majority of the respondents said that they spend at least 1 hour to 1 hours in big bazaar. 40% respondents also said that they spend 1 hours to 2 hours in their visit to big bazaar. Only 10% of people said that they spend very little time that is less than half an hour in big bazaar.
Interpretation: As per the given data I interpret that customers are very product choosy now a days and that's why they spend a lot of time in shopping in big bazaar. Probably customers might even be spending more time in big bazaar as it provides a very nice ambience and atmosphere for the people to shop in. Hence those persons who spend half an hour or less than half an hour in big bazaar are those persons who just come to purchase limited products and come only because of low pricing of products. People also spend much time in it but purchase very few goods. The sales personnel should focus on the people who take long time in shopping and purchases a lot and provide special kind of service to them as they are the major customers.
Comparison of footfalls in weekdays and weekends
Weeks days 40%
Analysis: The above graph shows that more number of people comes to big bazaar in weekends than that of week days .40% of people visits big bazaar in weekdays where as 60% of people visit big bazaar in weekends.
Interpretation: I can clearly interpret from this that most of the people tend to visit big bazaar in weekends rather than that of week days. There are more footfalls in big bazaar in weekends than that of week days. Though there is not much difference as 40% of people visit big bazaar in week days hence in weekends the footfall increases by 10%. As people come more in weekends, so big bazaar should keep it open for more time in week ends. The infrastructure can be changed a bit in week ends so that customers can see more products clearly and can move around comfortably. In order to bring in more number of customers in week days big bazaar should provide some schemes in week days which will encourage people to come in to it in week days also. Hence the crowd is more in weekends and big bazaar should avail more parking spaces for its customers in weekends. It can make some temporary arrangement for parking every weekend. It should not spend much money in advertising and displaying of products in weekdays rather it should advertise and display products more in weekends as more number of people comes in weekends.
Customers preference of timing to visit Big Bazaar
10 A.M. - 6 P.M. 42%
6 P.M. -10P.M. 58%
Analysis: The above pie chart shows that most of the people prefer to visit big bazaar in evening time than that of the day time. Only 42% of people tend to visit big bazaar during day time while 58% of people tend to visit big bazaar during evening time.
Interpretation: From the above analysis I interpret that evening time is the peak time for big bazaar and day time is the off peak time for big bazaar. There is more number of people found in big bazaar during evening time than that of day time. Probably more of products are being sold during evening time in big bazaar than that of day time. Big bazaar shall provide some special offerings during day time so that more people should come in during day time. It could offer some special kind of product in daytime which will be not available during evening time. In this way it will bring in more number of people during day time for getting the special kind of products but along with that it will be able to sale other products as people do a lot of impulse buying at big bazaar.
Comparison of customers purchasing with planned list of products and purchasing products on a unplanned basis
Analysis: As shown in the graph out of my total respondents of 200, 80% of customers come to big bazaar with a planned list of products. Only 20% of people come in to big bazaar without any planned list of products to be purchased from big bazaar.
Interpretation: As per the data obtained from the customers of big bazaar I interpret that most of the customers comes in to big bazaar with a planned list of products. Few customers come to big bazaar without any planned list of products and purchases products depending on their selection. These people basically come to the mall and hence get in to big bazaar. Depending on the product category and brand and quality of products they purchases goods. Some couples come to mall and go to food bazaar to have food together and to have chit chat among them. The customer who comes with a planned list of products purchases more products than that of the customers who comes without any planned list of products. So big bazaar should provide more variety and essential goods so that more number of people should come in with a planned list of products.
Brand preference of customers in Big Bazaar
Depends on category 40%
Analysis: As seen in the above chart it is clearly known that only 10% of people come in to big bazaar with a list of brands in advance. 50% of people completely deny that they don't prepare in list of brand in advance. 40% of people told that they prepare a list of brand depending on the product category.
Interpretation: From this I interpret that customers don't opt for much brand preference while purchasing products in big bazaar. A few customers search for brands but depending on the product category. Customers probably don't decide for brands on products as there are not much of known branded products available at big bazaar. On product categories like grocery and clothes, big bazaar has many local branded products. Customers purchase a lot of these as its cheap in price even though its quality is not so good. As most of the customers belong to lower class and middle class people, they purchase those local branded products as it gives them value for money. Different products of the same category have different prices. Quality of products varies with the price. This enables customization of products for various types of customers. Customers search for brands mostly in apparel section. Some customers also pre decides the brand on the local manufactured grocery and food products of big bazaar. Big bazaar should include more of the branded products in its each category so that customers have more options to choose among the brands. This will bring in more number of people to big bazaar which will definitely increase the sales.
Comparison of brand preference on different product category
Gift Items 33%
Electronic Items 25%
Leather Items 2%
Any Other Item 12%
Analysis: This graph shows that cloths and grocery are the only two items on which customers mostly prefer the brands that is 40% each. 33% brand preference is on gift items and 25% is on electronic items. Brand preference on leather items is 2% and 12% on any other item.
Interpretation: From this I interpret that some of the products brand are predecided in advance and for some of the products customers don't at all predecide any brand. As per electronic goods are concerned customers predeide the brand as many branded electronic products are available in big bazaar. The customers predecides brands on cloths and grocery most as big bazaar produces much of local brands and also have some well known branded products of clothes with it like flying machine jeans.
Mode of payment of customers in Big Bazaar
Cash Payment 73%
Credit Card 21%
Debit Card 6%
Analysis: As per my study is concerned, out of the total respondents 73% of people make cash payment in big bazaar. 21% of them uses credit card as their mode of payment and 6% of the people makes payment in big bazaar through their debit card.
Interpretation: As per the obtained data I interpret that maximum number of people makes cash payment in big bazaar. A fraction of people uses their credit card for payment in big bazaar and a very few people uses their debit card for payment. I can interpret that quick exchange of money for goods is done in big bazaar as most of the people mode of payment is cash payment. Hence some times big bazaar has to wait for a short time period as some of the customers make their payment through credit and debit card.
Comparison of factors which encourages customers to come in to Big Bazaar
Product Variety 65%
Product Quality 20%
Analysis: People are mostly encouraged to come to big bazaar because of its cheap price and availability of variety of products. Around 65% of the total respondent said they are mostly encouraged to come to big bazaar as it has variety options. Even most of the customers said that they get goods there in a discounted price and so they come in to it. Many customers also said that they feel good about the service and ambience provided by big bazaar. Around 35% of customers also said that convenience is also another factor which leads them to come to big bazaar. Product quality is rated at very low that is only 20% which encourages the customers to come to big bazaar.
Interpretation: From this analysis I interpret that big bazaar is a well known for its variety options. People mostly come to big bazaar as they get various kinds of products under one roof. It is also clearly known that big bazaar sales its goods at a discounted price as compared to the market. Even it provides a good service and ambience to its customers which encourages them to visit big bazaar more and more times. I can also interpret from this that big bazaar has located itself in a good place from where it is able to attract customers. As a hypermarket which is to be located far off the city, big bazaar has located itself in a good place from where it is convenient for people to visit big bazaar. Big bazaar should try and produce more qualitative products so that customers can get more satisfaction and would never think of not doing shopping in big bazaar.
Customers' mode of transport to Big Bazaar
Hired Vechle 10%
Any Other 0%
Analysis: Around 50% of the total respondent of 200 that is 100 people comes in to big bazaar with their own four wheelers. The second majority of people consist of people riding two wheeler and coming in to big bazaar. Only 10% of people of the total respondent visits big bazaar on hired vehicles. None of the customers of the total respondent comes in any other mode of transport.
Interpretation: From the above data I interpret that there are more number of four wheelers coming found in big bazaar than that of two wheelers. People prefer more to go to big bazaar in four wheelers than that of two wheelers. A few people are found who comes in to big bazaar with a hire vehicle. Probably they might be the tourists.
Parking space availability in Big Bazaar
Less than adequate 45%
More than adequate 10%
Analysis: As it is shown in pie chart most of the people say big bazaar does not provide adequate parking space. Equal number of people also says that adequate space is provided for parking big bazaar. Only 10% of people say that more than adequate space is available for parking in big bazaar.
Interpretation: Analyzing the above data, I interpret that customers are not satisfied with the parking space availability provided by big bazaar. Hence it's a threat for big bazaar as it may loose its customers because of less parking space availability. Even though many customers say adequate space is available for parking in big bazaar but also it is a threat for big bazaar as it is seen more number of people are expected to come in to big bazaar. In holidays probably it will be very difficult for customers to park their vehicle in big bazaar.
Customers preference towards Kirana store
Analysis: Out of my total respondent of 200 customers, 85% of them says they go to their near by kirana store and 15% said that they don't at all go to any kirana store. This shows that majority of people go to kirana store even though they visit big bazaar. But some customers are there who never goes to any kirana store.
Interpretation: As per the given data I analyze that most number of people tend to purchase goods from near by kirana store even if they come to big bazaar. I can conclude from this that a kirana store is a competitor of big bazaar. Some customers never go for shopping in kirana store as of it does not have much variety option available with it. Probably they are more interested in having a shopping experience rather than to just go and purchase goods from kirana store.
Comparison of Big bazaar with any Kirana store
Big bazaar 70 50 100 40 25 90 95
Kiranastore 30 50 0 60 75 10 5
Analysis: The above graph shows the comparison of different factors between big bazaar and a nearby kirana store. 70% of people say big bazaar provides goods at a cheaper price as compared to that of a kirana store. 50% of people say big bazaar provides better service and another 50% of them say kirana store provides better service. Each and every customer that is 100% agrees that there are more variety of products available at big bazaar than that of kirana store. As per quality of goods is concerned 60% of the customer say kirana store provides better qualitative products while 40% of the customers say big bazaar also provides qualitative products. 75% people say it is more convenient for them to go to a kirana store while 25% of them say going to big bazaar is more convenient for them. 90% of respondents said it is a good shopping experience at big bazaar while 105 of them said that they also have a good shopping experience at kirana store. As per ambience is concerned 95% of customers said big bazaar provides much nice ambience than big bazaar while 5% of them said that ambience provided by kirana store is also equivalent to that of big bazaar.Interpretation: I interpreted from this that a kirana store is one of the competitor of big bazaar. It is a threat for big bazaar as some of the attributes of a
kirana store provides more satisfaction to customers. Big bazaar should try to improve on each of its attributes and out compete the kirana store so that it can convert the customers of kirana store to be the customers of big bazaar.
SWOT ANALYSIS OF BIG BAZAAR
A SWOT analysis is done to know the strengths, weaknesses, opportunities and threats of any company. This analysis will explain about the strengths, weaknesses, opportunities and threats of big bazaar.
Strengths of Big bazaar
- Large variety option
- Cheap price
- Huge customer Base
- Volume sales
Weaknesses of Big bazaar
- Lacks in branded products
- Low in product quality
- Unable to provide enough parking space to its customers
Threats for Big bazaar
- Opening up of other discounted stores like Vishal mega mart
- Convenience of customers to near by kirana stores
- Availability of products in other retail outlets
Opportunities for Big bazaar
- To open up more and more number of big bazaars in different cities of the country.
- To grab the rural market
- To bring in the customers of other retail outlet by dealing with branded products.
- Add more products to its product category
CHAPTER - VII
Big bazaar is a major shopping complex for today's customers. It is a place where customers find variety of products at a reasonable price. Big bazaar has a good reputation of itself in the market. It has positioned itself in the market as a discounted store. It holds a huge customer base. The majority of customers belong to middle class family. The youth generation also likes shopping and moving around big bazaar. Volume sales always take place in big bazaar. Impulse buying behavior of customers comes in to play most of the times in big bazaar.
Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery, stationary, food items, electronic items, leather items, watches, jewellery, crockery, decorative items, sport items, chocolates and many more. It competes with all the specialty stores of different products which provide goods at a discounted rate all through the year. It holds a large customer base and it seemed from the study that the customers are quite satisfied with big bazaar. As of now there are 34 big bazaars in different cities of India, it seems that there is a vast growth of big bazaar lying as customers demand is increasing for big bazaars.
Big bazaar is a hypermarket store where varieties of products are being sold on different product category. It has emerged as a hub of shopping specially for middle class people.
Different types of products starting from a baby food to pizzas all are available under one roof. In Delhi it is the middle class people who mostly do marketing from big bazaar. Even most of the people do their monthly shopping from big bazaar. People not only visit big bazaar to do shopping but also visit for outing purpose as it provides a very nice ambience to its customers. As people go to malls they just tend to move around big bazaar whether it is for shopping purpose or for outing purpose. Grocery, apparels and food items are the products which are demanded most by the customers of Delhi in big bazaar. The major drawback of big bazaar is that it lacks in providing enough parking space for its customers. This may discourage the customers to come to big bazaar and shop as they face difficulty in parking their vehicles. Even though some customers say that they don't feel problem in parking their vehicle, it is because of the parking space available to them by the mall. As it is surveyed it seems that the biggest competitors of big bazaar are the kirana stores and the discounted specialty stores like Vishal mega mart, Delhi bazaar etc.
CHAPTER - VIII
- Big bazaar should provide large parking space for its customers so that they can easily park their vehicles.
- Big bazaar should include more of branded products its product category so as to attract the brand choosy people to come in to big bazaar.
- It should make different cash counters for different customers. Cash counter and credit card payment counter should be placed differently in order to reduce the rush and save the customer's time. This will be a kind of motivator for the customers of big bazaar.
- The service of the sales person is needed to be improved. Personal care should be taken by the sales person for the customers so that the customers feel good.
- During the off peak hour's big bazaar should provide some offers to its customers so that people would be encouraged to come to big bazaar during off peak hours. The customers who are present in the mall during the off peak hours of big bazaar will definitely go in to big bazaar if surprise offers are made at that time.
- Customer care department is needed to take proper care of customer complaints and queries. The person sitting at the help desk of big bazaar should be able to provide all necessary information to the customers whenever it is required.
- The infrastructure is needed to be changed a bit during weekends as heavy crowd comes in to big bazaar during those days.
CHAPTER - IX
Questionnaire prepared for customers of Big Bazaar
1. How frequently do you visit Big Bazaar?
d) On a unplanned basis
2. Apart from Big Bazaar do you intend to visit any other retail outlet in a Mall?
a) Yes b) No
3. If yes then what are the other retail outlets do you intend to visit in a mall?
a) Garment Outlet
b) Footwear Outlet
c) Food Court
e) Gift Corner
f) Jewellery and Watches store
4. What is the purpose behind visiting Big Bazaar?
5. What type of products do you mostly purchase in Big Bazaar?
c) Food Item
d) Leather Item
e) Electronic Item
f) Gift Item
g) Any other Item
6. On an average how much amount of money do you spend in a visit to Big Bazaar?
a) Below 500
b) 500 - 1000
c) 1000 - 1500
d) 1500 - 2000
e) More than 2000
7. How much time do you spend in a visit to Big Bazaar?
a) Less than half an hour
b) Half an hour to 1 hour
c) 1 hour to 1 hours
d) 1 hours to 2 hours
e) More than 2 hours
8. Which days of the week do you prefer to visit Big Bazaar?
a) Week days
9. Which time of the day do you mostly prefer to visit Big Bazaar?
a) 10am - 6pm
b) 6pm - 10pm
10. Do you go with a planned list of products to be purchased from Big Bazaar?
a) Yes b) No
11. Do you prepare a list of brands in advance when you visit to Big Bazaar?
a) Yes b) No c) Depends on category
12. In which categories of products do you pre-decide the brands?
b) Leather Items
c) Electronic Items
e) Gift Items
f) Any other Item
13. What is your mode of payment in Big Bazaar?
a) Cash payment b)Credit Card
14. What encourages you to visit Big Bazaar?
d. Product Variety
e. Product Quality
15. How would you rate the services of the sales personnel in Big Bazaar on a 1 - 5 scale?
16. What is your convenience to Big Bazaar?
a) Hired vehicle
d) Any other
17. How is the parking space availability in Big Bazaar?
a) Less than adequate
c) More than adequate
18. Do you go to Kirana store?
a) Yes b) No
19. If yes, how frequently do you visit the Kirana store?
20. Compare your nearest Kirana store with Big Bazaar on the following parameters.
f) Shopping Experience
- Name: -
- Age: -
- Sex: -
- Location/Address: -
- Qualification: -
- Profession: -
- What's your monthly income?
a) Below 10,000
b) 10,000 - 20,000
c) 20,000 - 40,000
d) 40,000 - 60,000
e) More than 60,000
1. Big bazaar outlet in Noida, Indralok, and Wazirpur.
2. Website : - www.google.com