Management Thesis MBA

COMPARATIVE STUDY OF MARKETING STRATEGY REFERENCE TO 4PS OF BIG BAZAR & OTHER RETAIL COMPANY
Management Thesis – 1 | 3rd Semester
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CERTIFICATE
It is certified that the work contained in the thesis entitled “A COMPARATIVE

STUDY OF MARKETING STRATEGY REFERENCE TO 4PS OF BIG BAZAR AND
OTHER RETAIL COMPANY"
By Rajesh Kumar has been carried out under my supervision and that this
work has not been submitted elsewhere for a degree.
Dr. Kausik Dutta

(Department of Marketing)
ICFAI University, Jharkhand.
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ABSTRACT
Retail is India’s largest industry, accounting for over 10 per cent of the country’s
GDP and around eight per cent of the employment. Retail industry in India is at the
crossroads. It has emerged as one of the most dynamic and fast paced industries
with several players entering the market. But because of the heavy initial
investments required, break even is difficult to achieve and many of these players
have not tasted success so far. However, the future is promising; the market is
growing, government policies are becoming more favorable and emerging
technologies are facilitating operations. Retailing in India is gradually inching its
way toward becoming the next boom industry. The whole concept of shopping has
altered in terms of format and consumer buying behavior, ushering in a revolution
in shopping in India. Modern retail has entered India as seen in sprawling shopping
centers, multi-storied malls and huge complexes offer shopping, entertainment and
food all under one roof. The Indian retailing sector is at an inflexion point where the
growth of organized retailing and growth in the consumption by the Indian
population is going to take a higher growth trajectory. The Indian population is
witnessing a significant change in its demographics. A large young working
population with median age of 24 years, nuclear families in urban areas, along with
increasing working-women population and emerging opportunities in the services
sector are going to be the key growth drivers of the organized retail sector in India.
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ACKNOWLEDGEMENT
The thesis what I have presented is not the made outcome of my labor alone. There
are dozens of hands buttressed me all through the programme it doesn’t go without
thanking all of those who constantly keep me on the move.
I would like to give heartily thanks to ICFAI University, Jharkhand who have given
us an opportunity to learn something practical apart from books by including the in-
plant training in our MBA Programme.
I express my gratitude to Faculty Guide Dr. Kausik Dutta who has supported me to
complete this thesis.
I would like to express my most sincere thanks and gratitude to External guide Mr.
Somen Banerjee (HR Manager, BIG BAZAAR) who have given a good support to grab
the external exposure and to complete a thesis in Big Bazaar.
I give my sincere token of thanks to all my faculties, relatives and friends who have
gathered me the wisdom of knowledge. This work is dedicated to my parents who
have supported me throughout my study.
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TABLE OF CONTENTS
TABLE OF CO
1. BASIC OF MARKETING …………….. Page 6

2. INTRODUCTION
ION TO RETAIL …………….. Page 21
3. RETAILING INDUSTRY IN INDIA …………….. Page 28
4. SHOPPER INTELLIGENCE …………….. Page 29
5. CURRENT TRENDS AND CHALLENGES …………….. Page 33
6. COMPANY PROFILE …………….. Page 35
7. BIG BAZAAR : Positioning & Establishment
Establishment……………. Page 39
8. BIG BAZAAR : 7 P’ss Analysis ……………. Page 40
9. STUDY STORE ……………. Page 42
10. STUDY STORE : Organisational Structure ……………. Page 43
11. RESEARCH METHODOLOGY ……………. Page44
12. OBJECTIVE OF THE THESIS ……………. Page44
13. DATA COLLECTION METHOD ……………. Page44
14. SAMPLING METHOD ……………. Page45
15. ANALYSIS
NALYSIS & INTERPRETATION ……………. Page 46

16. SURVEY FINDINGS ……………. Page55
17. CONCLUSION ……………. Page56
18. BIBLIOGRAPHY ……………. Page57
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BASIC OF MARKETING
TABLE OF CONTENTS
HISTORY
The practice of marketing is almost as old as humanity itself. A Market was
originally simply a gathering place where people with a supply of items or capacity
to perform a service could meet with those who might desire the items or services,
perhaps at a pre-arranged
arranged time.
Such meetings embodied many aspects of today's marketing methods, although
sometimes in an informal way. Sellers and buyers sought to understand each other's
needs, capacities, and psychology, all with the goal of getting the exchange of items
or services to take place. Today's New York Stock Exchange had its humble
beginnings as an open air market located at Wall Street in New York City.
The rise of Agriculture undoubtedly influenced markets as the earliest means mea of
'mass production' of an item, namely foodstuffs. As agriculture allowed one to grow
more food than could be eaten by the grower alone, and most food is perishable,
there was likely motivation to seek out others who could use the excess food, before
itt spoiled, in exchange for other items.
In 1960 Theodore Levitt wrote a journal article called Marketing Myopia. This is
said to have really begun the marketing craze. In it he discussed that the big
manufacturing industries at the time were misinterpretin
misinterpreting g what industry they were
part of. He stated that until you fully understood the industry you were part of you

were likely to fail. For example the rail industry was not in the business of rail
transport but in the industry of transport in general they wer weree still competing with
the likes of cars and public transport.
Levitt is said to be one of the founders of the marketing discipline, and contributed
to the making of the 4Ps framework that transactional marketing is based around.
A little bit of marketing theory... All it takes is a little theory practiced and applied,
and soon you will find that marketing comes naturally.
Marketing is more than sales. Marketing is the set of activities used to
1. Get your potential custome
customer's attention
2. Motivate them to buy
3. Get them to actually buy
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4. Get them to buy again (and again…)

Marketing is how you define your product, promote your product, distribute your
product, and to maintain a relationship with your customers.
Marketing theory is made up of the 5 P’s. Product, Positioning, Place, Price and
Promotion. Each "P" contributes to your marketing
Product
Product is, of course, the thing (or service) that you have to offer to the customers.
There are a number of thing about the product you should evaluate. It is important
to understand your product from the customer’s point of view.
Product Description
It is critical to be able to say in one clear sentence why your product is perfect for a
specific buyer and what it does best.” To (target audience), (product name) is the
type of (product) that (performs this task)."
Product Name
It is more important to be descriptive than creative. There are some exceptions to
this - such as music band names. One of the best ways to determine a name for a
product is to have a brainstorming session. The rules of brainstorming are:
1. No ideas are rejected or criticized
2. It is a free form "brain dump"
3. Someone is in charge of writing the ideas on a board where everyone can see
them.
4. After the ideas a generated, they are ranked by preference.

5. The pros and cons of the top ideas are discussed.
Functionality, Features & Benefits

In order to begin to understand the product from a customer’s point of view, list the
functionality, the features, and the benefits that product has. List functionality and
features that could be added.
Prioritize each for the target market or market segments to determine the
development of the product going forward.
This list will be used in positioning the product.
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Product Adaptability
By understanding how adaptable your software is, you can incorporate the
necessary elements into your marketing. There are five factors for measuring how
"adaptable" a new product is:
• Relative advantage of the product: How superior is the innovation to the
product or other problem-solving methods it was designed to compete
against?
• Compatibility: Does it fit with current product usage and customer activity?
• Complexity: Will difficulty or confusion arise in understanding the
innovation’s basic idea?
• Divisibility: How easily can trial portions of the product be purchased?
• Communicability: How likely is the product to appear in public places where
it is easily seen and studied by potential users?
Example - Product Music CD
What is it that you are selling?
You could say you are selling music, or an experience, or a feeling, or yourself. But
the bottom line is that you want people to buy your CD.
Note: Producing CDs has many advantages over producing tapes. CDs can be
produced for about $2 - $3 each, and you can charge $10 - $20 for them. CDs give a
professional, polished impression, and it is the media of choice for music listeners.
Ah. But what about tickets you sell to a show? Or T-shirts you sell? Aren't these
your product? Not really. They are ways to promote your CD. Everything you do
should be done with the end result of selling CDs.

Positioning
Simply, positioning is how your target market defines you in relation to your
competitors. A good position is:
1. what makes you unique
2. This is considered a benefit by your target market
Both of these conditions are necessary for a good positioning. So what if you are the
only red-haired singer who only knows how to play a G minor chord? Does your
target market consider this a good thing?
Positioning is important because you are competing with all the noise out there
competing for your potential fans attention. If you can stand out with a unique
benefit, you have a chance at getting their attention.
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It is important to understand your product from the customer’s point of view

relative to the competition.
Environment
In order to begin positioning a product, two questions need to be answered:
1. What is our marketing environment?
2. What is our competitive advantage?
The marketing environment is the external environment. Some things to consider:
• How is the market now satisfying the need your software satisfies?
• What are the switching costs for potential users for your market?
• What are the positions of the competition?
The competitive advantage is an internal question. What do you have that gives you
advantage over your competitors. Some things to consider:
• Is your company small and flexibility?
• Do you offer low cost and high quality?
• Does your product offer unique benefits?
• Are you the first on the market with this product (First mover advantage)?
Positioning Strategies
There are seven positioning strategies that can be pursued:
• Product Attributes: What are the specific products attributes?
• Benefits: What are the benefits to the customers?
• Usage Occasions: When / how can the product are used?
• Users: Identify a class of users.

• Against a Competitor: Positioned directly against a competitor.
• Away from a Competitor: Positioned away from competitor.
• Product Classes: Compared to different classes of products.
Segmentation
There are three types of segmentation:
1. Mass Marketing or Undifferentiated Marketing: Go after the whole market
with one offer and focus on common needs rather than differences
2. Product-variety Marketing or Differentiated Marketing: target several market
segments and design separate offers for each
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3. Target Marketing or Concentrated Marketing: Large share of one or a few

sub-markets. Good when company’s resources are limited.
To identify a niche market, a series of 2 by 2 matrixes can be used to identify an area
that is being overlooked by larger competitors. The competitors are mapped on this
matrix and you can see where there may be some opportunities.
Positioning Differences
The differences that are promoted for a product must be:
• Important: The difference delivers a highly valued benefit to the target
buyers.
• Distinctive: Competitors do not offer the difference, or the company can offer
it in a more distinctive way.
• Superior: The difference is superior to other ways that the customer might
obtain the same benefit.
• Communicable: The difference can be explained and communicated to the
target buyers.
• Preemptive: Competitors cannot easily copy the difference.
• Affordable: Buyers can afford to pay the difference.
• Profitable: Company can introduce the difference profitably.
Place
Place, or distribution channel, is the method for making your product available to
the consumer.
Functions

There are eight main functions for distribution channels:
1. Information: gathering and distributing marketing research
2. Promotion: developing and communicating offers
3. Contact: communicating with prospective buyers
4. Matching: fitting the offer to the buyer's needs
5. Negotiation: reaching agreement on price and terms
6. Physical distribution: transporting and storing the goods
7. Financing: getting and using funds to cover the costs of channel work
8. Risk taking: assuming the risks the channel work.
Example - Selling a CD
Place is simply where your fans buy your CD. You can also call it distribution.
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There are many ways to distribute your CD.

Retail
Probably the most difficult is retail (selling your CD in music stores). This is difficult
for independent musicians or bands because you usually need to have a relationship
with a distributor.
Online
Isn't the Web wonderful? You can easily and cheaply set up a web page with your
information, sample audio files, show dates, and how to order your CD.
In Person
Whenever you perform, you should sell your CDs. You can mention that you are
selling CDs and where to buy them while you are performing. It is easier if you have
a friend to help you. This person can collect the money, hand out the CDs, etc. so you
don't have to worry about it during a show.
In Home
There is nothing wrong with telephone orders!
Price
Price is the amount of money charged for a product or service or the value
exchanged for the benefits of the product or service.
For a new product, you must understand your positioning before you set a price.
Make sure it is not too low, or the product will not be taken seriously. If it is too
high, the potential customer will not take the risk.
Pricing Strategies

There are five general pricing strategies:
1. Product Line: Setting price steps between product line items
2. Optional Product: Pricing optional or accessory products
3. Captive Product: Pricing products that must be used with the main product
4. By-Product: Pricing low value by product to get rid of them
5. Product Bundle: Pricing bundles of products sold together
New Product Pricing

There are two new product pricing strategies:
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• Market-Skimming: Initially set high prices to "skim" revenue layer by layer

from the market. Works when:
Quality and image support the higher price
Enough buyers want the product at that price
Cost of producing a small volume cannot be high
Competitors should not be able to enter the market easily
• Market Penetration: Set a low initial price in order to penetrate the market
quickly and deeply to win a large market share. Works when:
Market is highly price sensitive
• Production and distribution costs fall as sales volume increases
• Low price must help keep out the competition
Price Adjustment
The following are price adjustments based on changing situations:
• Discount & Allowance: reduced prices to reward customer responses such as
paying early or promoting the product
• Discriminatory: adjusting prices to allow for differences in customers,
products, and locations
• Psychological: adjusting prices for psychological effects. Ex: $299 vs. $300
• Value: adjusting prices to offer the right combination of quality and service at
a fair price
• Promotional: temporarily reducing prices to increase short-run sales
• Geographical: adjusting prices to account for geographic location of customer.
• International: adjusting prices in international markets

Promotion
Promotion is the specific mix of advertising, personal selling, sales promotion, and
public relations a company uses to pursue its advertising and marketing objectives.
If you are an entrepreneur, you most likely have limited resources and you are still
learning about the market. Information gather is extremely important at this stage
of the game. The trick is the start the revenue stream without spending too much
money.
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Objectives
The objectives that are met by promoting are to move the target market through the
following phases:
“It is believed that consumers cannot skip over a phase, but they need to move
through them. Promotion is used to move the target market from one phase to
another to finally purchase.”
The Offer
The offer needs to be identified before you begin any promoting. What are you
offering the target customer? What do you want the target market to do?
One mistake that can be made is to create a promotional advertisement and not tell
the customer what to do. You should prompt the customer and tell them to "call this
number to place an order" or "download this software from our web site".
Measuring Response
Testing different offers, advertisements, direct mail letters, lists, and promotion
techniques can tell you what method is most effective. There is a trade-off. Testing is
expensive. You need different versions of promotions, which raises production
expense. You need to track the results, which takes time. But the information you
gather could help you reduce wasteful, ineffective spending in the future.
If you decide to test, make sure you have a method for measuring response. You can
do this by first asking the customer where they heard about you when taking the
order, if it is a telephone order. If it is an order form that they mail back to you, you

can code the order form with a tracking number that lets you know exactly what
promotion the customer is responding to. This information can then be entered into
the customer database for future analysis.
World Wide Web

The Web allows for a cheap way of promoting your product. It is a great tool
because it allows the target customers to educate themselves about your product by
reading about it, seeing a demo, and download a copy (and therefore serve as your
distribution channel).
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Remember, you are trying to reduce the perceive risk of purchasing your product.
By providing a Web page, you are moving the target market through the
communication cycle from unawareness to purchase.
Also, you are trying to reach innovators and early adopters. These people are
actively searching for better ways to meet their needs. The Web is a natural place
for them to go to look for you.
The difficulty with the Web is all of the noise out there. It is very crowded and
difficult to be noticed. Register with the entire search engines, such as Yahoo and
Alta Vista. Make sure that there are keywords in your web site that will attract your
target audience.
Direct Mail
An average response rate for direct mail is about 1%. This depends on the offer, the
mailing list, the target audience, the creative (how the direct mail piece looks), and
the timing of the mailing. There is a whole industry built around direct mailing.
This promotional activity involves many steps.

Direct mail is a way of promoting your software product by sending prospects mail.
It is a way of directly communicating to a list of people.
List Selection
A list is the names and addresses that you use to send your direct mail piece. This
list is very important to the success of a mailing. Some experts place 40% - 60% of
importance to the list and 40% - 60% to other combined factors, such as offer, sales

letter, and timing.
You rent a list from a company - as opposed to buying a list. You can rent a list for
one-time use, n-time use, or unlimited use. However, until you test the list, it would
be best to rent it for one-time use. Once you determine which list works for you,
then you can start negotiating multi-use lists.
Be aware that list rental companies track the use of your list. They include "seed"
names that you will not be able to identify. These seed names show if you use the list
more times than you rented it for.
Once a name on the list contacts you, whether to buy or simply inquire, you can then
use that name any way you want. They are considered your customer now.
You rent lists from a variety of sources:
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• Compiled List: Names and addresses from a common source - such as a phone
book. These lists are the least expensive, but have the lowest response rate.
• Mail Order Buyer Lists: Names and addresses of people who have responded
to direct mail in the past. Lists can be selected by lifestyle or special interests.
These lists respond better than compiled lists.
• Publication Lists: Names and addresses of people who subscribe to a
particular magazine. General interest magazines tend to have a lower
response rate than special interest magazines. Special interest newsletters
have a small circulation, but if this group is your target market, it can have a
better response rate than other lists.
• Donor Lists: Names and addresses of people that are of interest to non-profit
organizations.
• House Lists: Names and addresses owned by a specific company of customers
and inquires of their product.
You can narrow lists down by demographic information, such as gender, geographic
location, income, homeowners, frequency of purchase, regency of purchase, and
monetary (amount) of purchase. Regency of purchase tends to be a good indicator of
response rate. The older the names, the less likely the response - although you must
test your lists to determine how old is old.
Make sure that the company renting you the list has merged/purged it for duplicate
names, has updated the names and addresses using NCOA (National Change of
Address), and cleaned the file (removed all non-deliverables from the list). You
should have in your contract you get credit for names that are returned for non-
delivery.

You should merge/purge the file against any customer list you already have, or any
other rented lists you have.
Prices are usually given in cost per thousand. There is usually a minimum order -
such as 5,000 names. There is usually a cost to select based on certain criteria. Price
ranges can be from $50/M to $300/M for a base price. Each source varies. However,
the cheapest list may not be the most cost effective. You need to look at cost per
acquisition once the mailing is complete.
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Common Measurements
• Cost per acquisition = Total Cost of Mailing / Number of Responders (people
who ordered).
• Cost per piece = Total Cost of Mailing / Number of People Mailed.
• Response rate = Number of Responders / Number of People Mailed.
Response rates to prospects (non-customers) average around 1%.
Response Mechanism
One of the most important parts of your direct mail piece is the response
mechanism. This is the device that the prospect will use to place the order (or
request information).
In designing your response mechanism or order form you need use all you have
thought about so far - your offer, your product, the benefit it gives your customers,
the price, and the risk reducer (such as a money back guarantee or a free trial
period).
Make it easy for the prospect to place the order. Give them many ways to do it -
telephone, e-mail, fax, mail back order form.
Tell them exactly how to pay for the order.
The response card should be easy to fill out, offer as few choices as possible, be
short, and be easy to read and understand.
Although using a postcard may be cheaper, people will not put confidential
information on a postcard. They will not put credit card number or even name and
phone number on something everyone can read. Use a business reply envelope,

even if it is a little more expensive. You will get a higher response rate. And make
sure the response card fits in the envelope without folding it.
Involvement devices work. Give the prospect something to do, such as check a box
to order or place a sticker or stamp on the order form.
Give the order form a look of intrinsic value. Use the bond-like borders, seals,
stamps, and other money look a-likes.
Product Brochure
This piece of the direct mail can be made a little more "slick" than the sales letter
will be. The brochure will describe your product, the technical specifications, and
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the benefits to the customer, and testimonials from other customers, any free trial
period, and money back guarantee.
Include the company's name, address, phone number, fax number, and web address.
Sales Letter
The first line of a sales letter is a headline. It should give the reader immediately the
benefits of the offer being made. This is the first thing a reader will read. The P.S. at
the bottom of the letter is the second thing a read will read. Be sure to add a P.S. to
your letter, giving the offer, the benefits, the free trial period, and the deadline.
The average length of the sales letter is 4 pages long. Two pages long are considered
a short length letter and six or more is considered a long length letter. Printing on
both sides of a page test as well as one sided print.
The use of push dates test better than no push dates. A push date is a deadline for
the prospect to order - "PLEASE RESPOND BY MONDAY". If you are going to use a
specific date, allow for at least three weeks for delivery for third class mail.
Envelope
The first thing the prospect sees is the envelope. Some people use this to print a
"teaser" copy on the front of the envelope. This could be used to hint at what great
offer lies inside if they just would open the letter.
The risk is that the teaser copy immediately tells the prospect that this is another
advertisement junk mail piece, and it may not get opened as a result.
If you do use teaser copy, make sure that whatever is promised on the outside is
fulfilled on the insider. Otherwise the person will be angry, and therefore, no sale.

Testing and Tracking Response
On your response card, you can assign a code so you can keep track of what the
customer is responding do. What list did you use, what offer, what sales letter, what
brochure, what price, etc. There is no limit to the things you can test via direct mail.
For example AA-123-MA-1 could translate to the first mailing of list source AA, sales
letter 1, brochure letter 2, and price 3, in Massachusetts.
If you are testing price, make sure that everything else is constant. Use the same list
and the same direct mail piece, with just the price changed.
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Some Tricks That Work

Remember that direct mail is a personal medium. The more personal you can make
your mail look, the better response you will get.
Stamps work better than metered mail. Stamps look more like a personal letter.
First-class stamps provide a fast delivery, but don't necessarily improve response
rate version third-class stamps.
Flamboyant color just for the sake of color does not pay off. If you decide to use
some color for conservative enhancement, browns and greens do not work as well
as aquamarine blues, cold and warm grays, warm reds. Some other successful colors
have been bright orange, yellow ochre light and/or a metallic gold.
Soft white book and antique-finish papers work better than slick super white paper.
Cheap thin paper makes the product look cheap.
Address labels perform worse than computer printed addresses directly on the
envelope.
Make a dummy sample to determine folding of paper, size, and most importantly
weight. Postage is very expensive, and if you go over the designated weight set by
the post office, you will be paying for it. See the post office for the weight and size
limits for first-class and third-class mail. People like to do things. Checking a box,
using stickers and stamps and work to improve response.
Classified Advertisements
Although it may nice to be able to take out a full color, full page advertisement in an
industry magazine, it is very expensive and will not reach your target market of the
innovators and early adopters. This target market will read the classified ads in the

magazines looking for and willing to try new things.
The key for classified advertisements is frequency. Running an ad once will create
awareness, but not necessarily action.
Request a media kit from the magazine you are considering. This should contain
circulation information, subscriber profiles, and prices. This will help you determine
if your target market reads this magazine.
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Press Releases
A press release is an announcement of a new product release. Editors may take this
information and publish it as news in their magazine or newspaper. This is a great
way to get free publicity.
To send a press release, you should prepare a press kit that includes:
• Cover letter to the editor
Press release product announcement
Product features sheet
• Corporate background sheet
Evaluation product
Technical specifications sheet (if any)
Reprint of any past articles
Names of end user contacts and comments
Picture of your product
The editor may take your product announcement, make some modifications to it by
hand, and send the original to be printed. In general, editors like to have the press
releases double spaced with plenty of margin room.
There can be a 3-4 month lead time before your press release is published.
If possible, tie your press release into current events or human interest. It has a
better chance of being published.
Don't write your press release like an advertisement. Any claims you make be sure
to back them up with user testimonials.
Tailor your press release to each publication, or at least each type of publication.
Mass mailing press releases don't usually get published. Also, send your press

release to one person at each magazine. If you are unsure of the person, contact the
magazine for a contact name.
Include in your press release the product name, the price, a company contact name,
the company name, address, phone number, fax number, and e-mail address. Be
prepared to take questions.
Your opening sentence should be clear and concise. "The first (product) capable of
(doing this benefit) is now available from (your company) for people who need to
(this need)".
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Product Reviews
Magazines have product review editors that review it in an article or column. This
can provide great exposure. However, it can also be risky. What damage will it do if
you get a bad review? Before pursuing this promotional activity, it may be safest to
fully complete testing, and have contacted many new customers to get their
feedback on the product. Make sure there are no surprises.
Choose a magazine your target market is reading. You can always use quotes from
the review in your promotional material for other promotions. With more people
accepting the product, the faster you will move past the early adopters and
innovators.
Call the magazine for the name of the correct person to send the product to. Ensure
that this person gets a full product.
Be available for questions. If a reviewer has problems, there will usually be a phone
call to the company first.
Example - Promotion Your Music
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INTRODUCTION TO RETAIL
TABLE OF
What is retailing?
Retailing involves selling products and services to consumers for their personal or
family use. Department stores, like Burdines and Macy's, discount stores like Wal- Wal
Mart and K-Mart,
Mart, and specialty stores like The Gap, Zales Jewelers and Toys 'R' us,
are all
ll examples of retail stores. Service providers, like dentists, hotels and hair
salons, and on-line
line stores, like Amazon.com, is also retailers.
Many businesses, like Home Depot, are both wholesalers and retailers because they
sell to consumers and building contractors. Other businesses, like The Limited, are
both manufactures and retailers. Regardless of other functions these businesses
perform, they are still retailers when they interact with the final user of the product
or service.
Retailing consists
nsists of the sale of goods or merchandise, from a fixed location such as a
department store or kiosk, in small or individual lots for direct consumption by the
purchaser. Retailing may include subordinated services such as delivery. Purchasers
may be individuals
viduals or businesses. In commerce, a retailer buys goods or products in
large quantities from manufacturers or importers, either directly or through a
wholesaler, and then sells smaller quantities to the end
end-user.
user. Retail establishments
are often called shopsops or stores. Retailers are at the end of the supply chain.
Manufacturing marketers see the process of retailing as a necessary part of their
overall distribution strategies.

Shops may be on residential streets, or in shopping streets with few or no houses,
house or
in a shopping center or mall. Shopping streets may or may not be for pedestrians
only. Sometimes a shopping street has a partial or full roof to protect customers
from precipitation. Retailers often provided boardwalks in front of their stores to
protect
tect customers from the mud. Online retailing, also known as ee-commerce
commerce is the
latest form of non-shop
shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational
activity. Recreational shopping often involves window shopping (just looking, not
buying) and browsing and does not always result in a purchase.
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Most retailers have employees learn facing; a hyperreal tool used to create the look
of a perfectly-stocked store (even when it's not).
Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves
adding a markup amount (or percentage) to the retailers cost. Another common
technique is suggested retail pricing. This simply involves charging the amount
suggested by the manufacturer and usually printed on the product by the
manufacturer.
In Western countries, retail prices are often so-called psychological prices or odd
prices: a little less than a round number, e.g. $6.95. In Chinese societies, prices are
generally either a round number or sometimes a lucky number. This creates price
points.
Often prices are fixed and displayed on signs or labels. Alternatively, there can be
price discrimination for a variety of reasons. The retailer charges higher prices to
some customers and lower prices to others. For example, a customer may have to
pay more if the seller determines that he or she is willing to. The retailer may
conclude this due to the customer's wealth, carelessness, lack of knowledge, or
eagerness to buy. Price discrimination can lead to a bargaining situation often called
haggling — a negotiation about the price. Economists see this as determining how
the transaction's total surplus will be divided into consumer and producer surplus.
Neither party has a clear advantage, because the threat of no sale exists, whence the
surplus vanishes for both.
Retailers who are overstocked, or need to raise cash to renew stocks may resort to
"Sales", where prices are "marked down", often by advertised percentages - "50%

off" for example."Sales" are often held at fixed times of the year, for example January
sales, or end-of-season sales, or Blue Cross Sale.
Etymology
Retail comes from the French word retaillier which refers to "cutting off, clip and
divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning
of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to
"cut off, shred, paring". Like the French, the word retail in both Dutch and German
(detailhandel and Einzelhandel respectively) also refer to sale of small quantities or
items.
P a g e | 22
Retail types
There are three major types of retailing. The first is the market, a physical location
where buyers and sellers converge. Usually this is done on town squares, sidewalks
or designated streets and may involve the construction of temporary structures
(market stalls). The second form is shop or store trading. Some shops use counter-
service, where goods are out of reach of buyers, and must be obtained from the
seller. This type of retail is common for small expensive items (e.g. jewelry) and
controlled items like medicine and liquor. Self-service, where goods may be handled
and examined prior to purchase, has become more common since the Twentieth
Century. A third form of retail is virtual retail, where products are ordered via mail,
telephone or online without having been examined physically but instead in a
catalog, on television or on a website. Sometimes this kind of retailing replicates
existing retail types such as online shops or virtual marketplaces such as eBay.
Buildings for retail have changed considerably over time. Market halls were
constructed in the Middle Ages, which were essentially just covered marketplaces.
The first shops in the modern sense used to deal with just one type of article, and
usually adjoined the producer (baker, tailor, cobbler). In the nineteenth century, in
France, arcades were invented, which were a street of several different shops,
roofed over. From this there soon developed, still in France, the notion of a large
store of one ownership with many counters, each dealing with a different kind of
article was invented; it was called a department store. One of the novelties of the
department store was the introduction of fixed prices, making haggling unnecessary
and browsing more enjoyable. This is commonly considered the birth of
consumerism. In cities, these were multi-story buildings which pioneered the

escalator.
In the 1920's the first supermarket opened in the United States, heralding in a new
era of retail: self-service. Around the same time the first shopping mall was
constructed which incorporated elements from both the arcade and the department
store. A mall consists of several department stores linked by arcades (many of
whose shops are owned by the same firm under different names). The design was
perfected by the Austrian architect Victor Gruen. All the stores rent their space from
the mall owner. By mid-century, most of these were being developed as single
enclosed, climate-controlled, projects in suburban areas. The mall has had a
considerable impact on the retail structure and urban development in the United
States.
P a g e | 23
In addition to the enclosed malls, there are also strip malls which are 'outside' malls
(in Britain they are called retail parks. These are often connected to supermarkets
or big box stores. Also, in high traffic areas, other businesses may lease space from
the supermarket or big box store to sell their goods or services from. A recent
development is a very large shop called a superstore. These are sometimes located
as stand-alone outlets, but more commonly are part of a strip mall or retail park.
Local shops can be known as brick and mortar stores in the United States. Many
shops are part of a chain: a number of similar shops with the same name selling the
same products in different locations. The shops may be owned by one company, or
there may be a franchising company that has franchising agreements with the shop
owners (see also restaurant chain).
Some shops sell second-hand goods. Often the public can also sell goods to such
shops, sometimes called 'pawn' shops. In other cases, especially in the case of a
nonprofit shop, the public donates goods to the shop to be sold (see also thrift
store). In give-away shops goods can be taken for free.
There are also 'consignment' shops, which is where a person can place an item in a
store, and if it sells the person gives the shop owner a percentage of the sale price.
The advantage of selling an item this way is that the established shop give the item
exposure to more potential buyers.
The term retailer is also applied where a service provider services the needs of a
large number of individuals, such as with telephone or electric power.
Why is Retailing Important?

As the final link between consumers and manufacturers, retailers are a vital part of

the business world. Retailers add value to products by making it easier for
manufactures to sell and consumers to buy. It would be very costly and time
consuming for you to locate, contact and make a purchase from the manufacturer
every time you wanted to buy a candy bar, a sweater or a bar of soap. Similarly, it
would be very costly for the manufactures of these products to locate and distribute
them to consumers individually. By bringing multitudes of manufacturers and
consumers together at a single point, retailers make it possible for products to be
sold, and, consequently, business to be done.
Retailers also provide services that make it less risky and more fun to buy products.
They have salespeople on hand who can answer questions, may offer credit, and
display products so that consumers know what is available and can see it before
P a g e | 24
buying. In addition, retailers may provide many extra services, from personal
shopping to gift wrapping to delivery, that increase the value of products and
services to consumers.
The Future of Retailing
Advances in technology, like the Internet, have helped make retailing an even more
challenging and exciting field in recent years. The nature of the business and the
way retailing is done are currently undergoing fundamental changes. However,
retailing in some form will always be necessary. For example, even though the
Internet is beginning to make it possible for manufacturers to sell directly to
consumers, the very vastness of cyberspace will still make it very difficult for a
consumer to purchase every product he or she uses directly. On-line retailers, like
Amazon.com, bring together assortments of products for consumers to buy in the
same way that bricks-and-mortar retailers do.
In addition, traditional retailers with physical stores will continue to be necessary.
Of course, retailers who offer personal services, like hair styling, will need to have
face-to-face interaction with the consumer. But even with products, consumers
often want to see, touch and try them before they buy. Or, they may want products
immediately and won't want to wait for them to be shipped. Also, and perhaps most
importantly, in many cases the experience of visiting the retailer is an important
part of the purchase. Everything that the retailer can do to make the shopping
experience pleasurable and fun can help ensure that customers come back.
Retail Strategy Planning

Why Strategy?

To define the business idea and validate the same through:
• Market entry strategy
• Market positioning strategy
• New concept development
• Business feasibility analysis
For Whom?
Strategy planning service caters to the needs of:
• Entrepreneurial retail venture
• Organizations planning to foray into the retail arena
• Manufacturing companies with retail business ideas
• Existing traditional retail businesses trying to reinvent themselves
P a g e | 25
How?
A series of activities are required to frame a strategy. These include:
• Management interviews
• Organization assessment
• Segment analysis
• Competitive performance analysis
• Customer research
• Capturing target segments ‘Share of Mind’
• Analysis of different format options
• Analysis of merchandise mix
• Analysis of various price points
• Rollout plan
• Business feasibility plan
Why Integrated Retail?

Integrated Retail carries out Strategy Planning based on the following strengths:
• Large team with over 200 man-years of retail operations and business
experience
• Successful implementation track record of similar projects
• Constantly updated repository of best business practices in retail from across
the world
P a g e | 26
• Data bank of benchmark retail performance data

• Access to macro-economic data impacting overall retail and consumer
businesses.
Retail Summary Chart
Below us summarizes each retail format by using the seven categorization
characteristics. The characteristics identified for each format should be viewed as
the “most likely” case for that format and are not necessarily representative of all
retailers that fall into this format. For example, under distribution, clearly most
retailers today have an online presence, however, for many the predominant
distribution methods is still selling through retail stores.
Format Target Products Pricing Promotion Distribution Service Ownership
Market Carried Strategy Emphasis Level Structure
Mom-and-Pop mass general competitive advertising stand-alone assorted individually o/o

specialty specialty direct mail strip center
shopping area
Mass Discounter mass General discount advertising stand-alone self corp. chain
strip-center
Warehouse Store mass General discount advertising stand-alone self corp. chain
Category Killer mass Specialty discount advertising stand-alone assorted corp. chain
competitive strip center
Department Store specialty General competitive advertising shopping area assorted corp. chain
shopping mail
Boutique speciatly Specialty full Selling stand-alone full individuallly o/o

exclusive strip center chain
shopping area

Catalog mass general discount direct mail direct marketer assorted corp. structure
specialty specialty competitive
e-Retailer mass general discount advertising online seller self corp. structure
specialty specialty competitive
full
Franchise mass Specialty competitive advertising stand-along assorted contractual

strip center
Convenience mass General full advertising stand-alone self individually o/o

corp. chain
Vending mass Specialty full None vending self corp. structure
P a g e | 27
RETAILING INDUSTRY IN INDIA
TABLE OF
It was only in late the 1980’s that organized retailing started in India. Till 1990’s the
organized retailing industry was dominated by manufacturer-owned owned retail store like
Raymonds, Grasim, S kumars and Bombay Dyeing. With liberalization of Indian
economy in 1990 multi-national
national players like Nanz entered in Indian retailing
industry. Encouraged by the response to branded retail stores, IndIndian
ian entrepreneurs
set up retail chains like Viveks, Nilgiris and Cotton World. Now the retailing industry
is flooded with large stores, shopping malls and multiplexes. Shopper’s Stop,
Lifestyle, West Side, Pantaloons, Giant, Food World, Croosword and Big Bazaar B are
some of the big names in the organized retailing industry.
The retail customer of India in 21st century is different from those in 1980’s & 90’s.
Retail strategies need to be continuously assessed in view of changing
demographics and new buying p patterns.
atterns. There is an increase in the number of small
households with working couples. Their children including teenagers have high
purchasing power. With emergence of call centers which employ young graduates,
many of them stay in cities away from parents
parents. Thus,, the purchasing power of the
young has increased considerably. The increasing number of Indians working in
multinational companies, frequent trips abroad, and to a certain extent the media
have all played their part in increasing brand consciousness among customers. They
equate brand with quality, prestige and status. Hence, retailers should strive to

maintain superior quality products and enhance their brand image and store image
to retain customer’s confidence and win their loyalty.
In India, the retailing

etailing industry is still in the growth phase, with lot of untapped
potential. Existing players are expanding their operation while new players are
entering the industry to tap the potential.
P a g e | 28
SHOPPER INTELLIGENCE
TABLE OF
Specialist shopper research must be carried out to make sense of the retail
environment, and to gain an understanding of what motivates the shopper’s
behaviours and decisions in the store. “Global research spend allocated to retail,
including the shopper, is between 15 and 20 per cent. In South Africa only five per
cent of spend goes to retail, but it’s what everybody is talking about,” says Siemon
Scamell-Katz, founder, TNS Magasin, and global director of TNS Retail and Shopper.
The shopper retail/marketing industry is said to be worth R130 0 bn (and that’s just
the FMCG categories), according to Michael Broughton, acting CEO of the Consumer
Goods Council of SA (CGCSA).The good news is that there is a lot of research
innovation taking place. “There are a greater number of store pilots and targeted
shopper research going on. Retailers are waking up to it and they want category

insights. They are thinking about their competitors,” says Andrea Ellens, associate
brand director, Added Value. Shopper research can be a costly investment, so brand
owners
ers are encouraged to start small and be very particular about the type of
research methodology used. “When companies don’t know what research to buy, we
actually recommend that they begin by studying existing in in-store
store data and use it to
get their basics right,
ight, including supply chain and merchandising.
Once this has been achieved, they can start asking the more complex questions
around shopper insights,” says Stephen Mawby, managing director of Glendinning
Management Consultants. He points to technology and software available in the UK,
which allows the marketer to input sales data obtained from the retailer, and then
P a g e | 29
slice it up and analyse it in many different ways to get a holistic understanding of

the performance of its brands. Locally, sales data is available, but there is a shortage
of standardised software or tech systems. Very important is that the research itself
be integrated into marketing strategy to address the business goals and problems of
a brand or store, and should be accompanied by both pre- and post-testing to
determine its effectiveness. Yet fewer than five per cent of brands globally are
confident that shopper research has been integrated into their strategies, according
to Peter Wilson, business manager: TNS Research Surveys Client Services. “I have
seen very little evidence of shopper research finding its way into retail trade by way
of a coherent shopper strategy,” says Marne Dirks, MD, Executrac. A lot of rich
shopper and activation insights never make it into the store, due to a lack of
execution capabilities.
“Research firms tend to complicate research feedback in this area and I have seen as
many as 18 shopper demographic profiles for one FMCG company in the same
channel, making it near impossible for a sales rep to execute a strategy,” says Dirks.
Classifications should be kept to a simple two to three shopper types per channel,
based on in-store observation.
It should also be kept in mind that a store owner is the best source of free
information about the shopper, category routes and pricing levers, so working more
closely with them will provide simpler, more cost-effective insights. Shopper
research: step by step Shopper research begins by understanding what happens
before the shopper enters the store. At this stage, the researcher is investigating the
brand equity pre-disposition (whether the shopper has a positive perception of the

brand, as created by previous consumption and advertising), as well the different
shopping missions that the shopper plans and their impact on in-store behaviour.
The next stage of shopper research investigates how the shopping mission has
motivated the choice of store, the behaviour in the store and the impact of different
marketing media and messages. As says Kristina Couzyn, director: Shopper
Marketing, Ogilvy, it’s overly simplistic to say that 70 per cent of decisions are made
at the point of sale without understanding what kinds of decisions are made.
The experience of the shopper both before and during the shopping process as well
as during consumption post-shopping will feed back into the pre-shop motivations,
and will inform future shopping missions and decisions.
P a g e | 30
New technology
The use of technologies like infrared and radio frequency identification (RFID) have
not seen extensive rollout locally. “SA is essentially a follower in terms of
international technology developments. We do not anticipate much before 2011,”
says Broughton.
Coca-Cola SA, however, is reportedly using GPS trackers in trolleys to get maximum
exposure in-store by tailoring its execution standards by channel, geography and
shopper type. This allows Coca-Cola to ensure that the correct brand and pack mix is
available at the correct price and is communicated effectively in every outlet. “This
means moving away from a one-size fits all approach into a segmented approach
where the picture of success is altered for every outlet based on the variables. The
caveat, as always, is the capability of the sales and trade marketing folk to execute
against multiple pictures of success in various outlets,” says Dirks. The ultimate goal
will be for South African companies to manage day part marketing on this level.
Radio Frequency Identification
RFID tracking sees the trolley being fitted with a device which tracks its path
through the store, as well as registering where the shopper lingers and for how long.
This is helpful in identifying the store hot spots from the shopper’s perspective.
Infrared-assisted research
Infrared technology was used by Nielsen’s US offices in the PRISM project to provide
traffic counts for different parts of a store; this allows the store to be rated a

medium for marketing. However, the project has been shelved due to lack of funding
(Wal-Mart pulled out of the project in late 2008, according to reports on
www.adadge.com).
Video mining
In the US, technology that was developed by homeland security is being used to
‘watch’ video recordings of the shopper in action and anonymously record their
demographics, while also analysing which store elements the shopper engages with
(www.videomining.com). However, shopper privacy is an issue.
P a g e | 31
Eye-tracking
Eye-tracking could be useful for understanding what the shopper sees in the store.
But researchers say that there is a disconnect between what the shopper looks at
and what that actually does for decision-making in the store. This form of
observation must be layered with other methodologies for better insights.
Marketing at Retail Initiative (MARI ) research
MARI research is endorsed by the Point of Purchase Association (POPAI), which has
been established locally (www.popai.co.za). The MARI research aims to measure
engagement with in-store media and marketing messages. A sample of shoppers is
fitted with a clipcam (surgical camera, attached to their glasses, or a dummy pair of
glasses). This camera records what the shopper sees, and which brands and
marketing messages they interact with, to determine what sort of marketing works
and where it is best situated in the store.
There are concerns, however, that the cameras will impact shopper behaviour and
will compromise the research.
P a g e | 32
CURRENT TRENDS AND CHALLENGES

T
The current economic recession is changing the

retail marketing environment in terms of an
increase in retail
tail marketing spend even as
consumers tighten their purse strings and overall
marketing budgets shrink. This dichotomy has ome
about as the realisation of the ‘moment of truth’
drives more focus into the retail environment.
However, in light of the current economic climate,
there will need to be much more retail marketing
and shopper insight research carried out to push
brand sales. “If we review what is happening in the US and use this as the base case,
pend within the retail marketing environment will continue to increase year on
ear,” says Elton Scheepers, commercial business director, Todwil. With marketing
udgets shrinking, the trend is moving towards more tactical below-the-line
below
campaigns, though not necessarily at the expense of above-the-line ne branding. “With
ver 60 per cent of shopper decisions being made in the outlet, this trend is here to
tay. As always, when volume and profitability come under threat from weak
economic conditions, more knee knee-jerk-type activities find their way into the
marketplace,” says Scheepers. Manufacturers too, are trying to cut their costs.
Marne Dirks, MD, Executrac, finds that to keep margins intact, manufacturers are

focusing on making business processes more efficient and cutting costs, although it
seems to haveve only a limited impact. The only bright light on the horizon is the drop
in fuel prices. Retailers are also under severe pressure to cut costs while meeting
profit targets and retaining shopper loyalty. Reports (www.tradeintelligence.co.za)
indicate that retailers had better than expected December trade, but that January is
off to a slow start. The bottom line is that this year will be tough. To maintain
profits, stores are going to have to work hard at creating the right shopping
environment; service delivery
ivery is key, and a simpler, more pleasant shopping
experience must be created.
P a g e | 33
Brands and retailers are going to have to work more closely together as a key
component in maintaining profits for both parties is to keep the shelves stocked
with the right brands, at the right price. All too often, shoppers are faced with empty
shelves and products missing for inordinate amounts of time, eroding loyalty and
confidence in product, brand and retailer. Stephen Mawby, managing director of
Glendinning Management Consultants, compares SA’s retail market to those of more
developed countries, where the average store product range is very complex, and all
aspects of the service and supply chain have been refined. Locally, he says, there are
still issues around supply, store range, store layout and so on; retailers need to drive
the research that exposes the weak spots and highlight new opportunities. As stores
try to achieve this, we may see continued focus on ready to eat, prepared meals, and
also on healthy or organic foods; however, pricing needs to be carefully considered
(even premium shoppers will be cutting back and looking for value).
Another result of the tightening of purse strings will see the loyalty of high-end
retail shoppers being eroded as they switch to mid-range.
P a g e | 34
COMPANY PROFILE
T
Pantaloon Retail (India) Limited, is India's leading retail company with presence
across multiple lines of businesses. The company owns and manages multiple retail
formats that cater to a wide cross
cross-section of the Indian society and is able to capture
almost the entire consumption basket of the Indian consumer. Headquartered in
Mumbai (Bombay), the company operates through 5 million square feet of retail
space, has over 331 stores across 40 cities in India and employs over 17,000 people.
The company registered a turnover of Rest 2,019 crore for FY 2007
2007-08
08
It owns and operates multiple retail formats including Pantaloons, Big Bazaar, Food
Bazaar, Central, E-Zone,
Zone, Fashion Station, Depot and many others.
Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion
retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket
chain that combines the look and feel of Indian bazaars, with aspects of modern
retail, like choice, convenience and hy
hygiene.
giene. Food Bazaar, food and grocery chain
and launch Central, a first of its kind seamless mall located in the heart of major
Indian cities, followed this. Some of its other formats include, Collection i (home
improvement products), E-ZoneZone (consumer elect
electronics),
ronics), Depot (books, music, gifts
and stationary), All (fashion apparel for plus plus-size
size individuals), Shoe Factory
(footwear) and Blue Sky (fashion accessories). It has recently launched its retailing
venture, futurebazaar.com.

The group's subsidiary companies include, Home Solutions Retail India Ltd,
Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. The
group also has joint venture companies with a number of partners including French
retailer Etam group, Lee Cooper, Manipal Healthcare, Jaywalker’s, Gini & Jony and
Liberty Shoes. Planet Retail, a group company owns the franchisee of international
brands like Marks & Spencer, Debenhams, Next and Guess in India.
Pantaloon Retail is listed on BSE and NSE with a turnover of Rs 2,018 crores for
financial year ended 2007-08. 08. Pantaloon Retail was selected as the Best of Best
Retailers in Asia by Retail Asia
Asia-Pacific Top 500 magazine in 2006.
P a g e | 35
Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned
to cater to the entire Indian consumption space. The Future Group operates through
six verticals: Future Retail (encompassing all retail businesses), Future Capital
(financial products and services), Future Brands (management of all brands owned
or managed by group companies), Future Space (management of retail real estate),
Future Logistics (management of supply chain and distribution) and Future Media
(development and management of retail media).
Future Capital Holdings, the group's financial arm, focuses on asset management
and consumer finance. It manages two real estate investment funds (Horizon and
Kshitij) and consumer-related private equity fund, Indecision. It also plans to get
into insurance, consumer credit and other consumer-related financial products and
services in the near future.
Future Group's vision is to, "Deliver Everything, Everywhere, Every time to Every
Indian Consumer in the most profitable manner." One of the core values at Future
Group is, 'Indian’s' and its corporate credo is - Rewrite rules, Retain values.
Future Group Manifesto
“Future” – the word which signifies optimism, growth, achievement, strength,

beauty, rewards and perfection. Future encourages us to explore areas yet
unexplored, write rules yet unwritten; create new opportunities and new successes.
To strive for a glorious future brings to us our strength, our ability to learn, unlearn
and re-learn, our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our
customers, employees, shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how and
when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
P a g e | 36
We will not just spot trends; we will set trends by marrying our understanding of
the Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. We shall keep relearning. And in this process, do just one
thing.
Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by
the Pantaloon Group. It works on same the economy model as Wal-Mart and has had
considerable success in many Indian cities and small towns. The idea was pioneered
by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd.
Big Bazaar stores in Metros have a gaming area and kids play area for
entertainment.
Cities where stores are located are,
Agra, Ahmadabad, Allahabad, Ambala, Asansol, Bangalore, Bhubaneswar, Chennai,

Coimbatore,Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon,Hyderabad,
Indore, Lucknow,Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot,
Surat, Thane, Thiruvananthapuram, Vishakhapatnam.
Big Bazaar is not just another hypermarket. It caters to every need of customer’s
family. Where Big Bazaar scores over other stores is its value for money proposition
for the Indian customers.
At Big Bazaar, customer will definitely get the best products at the best prices --

that’s what Big Bazaar 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 customer. And this is just the beginning. Big Bazaar plans to add
much more to complete customers shopping experience.
Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by
the Pantaloon Group. It works on it the economy model as Wal-Mart and has had
considerable success in many Indian cities and small towns. The idea was pioneered
by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd.
P a g e | 37
Big Bazaar stores in Metros have a gaming area and kids play area for
entertainment.
Cities where stores are located:
Agra, Ahmedabad, Allahabad Ambala Asansol Bangalore Bhubaneswar

Chennai Coimbatore Palakkad Kolkata Delhi Durgapur Ghaziabad Gurgaon
Hyderabad Indore Lucknow Kanpur Mangalore Mumbai Nagpur Nasik Panipat
Pune Rajkot Ranchi Surat Thane Thiruvananthapuram Vishakhapatnam
Big Bazaar is not just another hypermarket. It caters to every need of customer’s
family. Where Big Bazaar scores over other stores is its value for money proposition
for the Indian customers.
At Big Bazaar, customer will definitely get the best products at the best prices --
that’s what Big Bazaar 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 customer. And this is just the beginning. Big Bazaar plans to add
much more to complete customers shopping experience.
Big Bazaar is Indian personification of retail. It’s like an Indian bazaar or mandi or
mela, the environment created by traders to give shoppers a sense of moment. Its
personality is of being an entity away from fancy or pretty and being authentically
"no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is
evident from Indian-specific personality of the brand. The brand’s personality is
self-explanatory by its tag-line only. This statement places Big Bazaar at the top of

customer’s mind. It reflects that entrepreneurship and simplicity are the essence of
character of Big Bazaar. To use predatory pricing is not in the personality of Big
Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the
"Indian Wal-Mart", is the modern Indian family's favorite store. Big Bazaar
symbolizes modern retail, the business which isn’t looked up to in our country, is
now in the eyes of many multi-national biggies. Big Bazaar has shown a robust
growth in recent years.
We have a store opening virtually every fortnight; I have lost count now of how many I have opened."
- Kishore Biyani
P a g e | 38
BIG BAZAAR : Positioning & Establishment
TABLE OF
Big Bazaar has established itself in the first quadrant of Organization Value and
Customer Value Matrix. The SWOT Analysis of current strategy of Big Bazaar
elaborates the core competencies and areas of improvement. The key features that
have shaped in establishing of brand includes: -
• Big Bazaar ensures that no other kirana store / departmental store are offering
considerable
able discount compared to its own price. This helped Big Bazaar in being
the "value for money" store.
• Big Bazaar scores high on product mix as compared to kirana store.
• Cheap and local products are heavily stocked in Big Bazaar which make it easier to
attract lower middle class category of customers.
• Promotion of kirana is rare event but Big Bazaar used this channel efficiently to
establish itself as national brand.
• Customer loyalty resulting in high up sell, i.e., selling to existing customers.

custom
• Big Bazaar refrains from high

high-end
end locations for business which reduces its rental
budget and provides competitive advantage over competitors. Kishore Biyani has
taken "early movers advantage" in many retail spaces.
P a g e | 39
BIG BAZAAR : 7 P's Analysis
TABLE OF
7P Analysis of Big Bazaar
7P Marketing Mix is more useful for services industries and knowledge intensive
industries. Successful marketing depends on number of key issues. The seven keys
issues are explained as: -
Product
Big Bazaar offers a wide range of products which range from apparels, food, farm
products, furniture, childld care, toys, etc. Products of all the major brands are
available at Big Bazaar.. Also, there are many in house brands promoted by Big
Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD DVD-players
layers and 25,000
microwave-ovens.
ovens. In all, the fashion, electronics and travel segments made up about
70% of sales. Last year, these categories made up only about 60%.
Price
line is "Is se sasta aur accha aur kahin nahi". They work on the model of
The tag-line
economics of scale. There pricing objective is to get "Maximum Market Share". The
various techniques used at Big Bazaar are: -
• Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises consumers

the lowest available price without coupon clipping
clipping,, waiting for discount promotions,
or comparison shopping.
• Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept
of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big
Bazaar also caters on Special
cial Event Pricing (Close to Diwali, Gudi Padva, and Durga
Pooja).
• Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-
non
peak hours or days of shopping is also a pricing technique used in Indian retail,
which is aggressively used by Big Bazaar.
P a g e | 40
• Bundling: Selling combo-packs and offering discount to customers. The combo-

packs add value to customer.
Place
• Big Bazaar stores are located in 50 cities with 75 outlets. Big Bazaar has presence
in almost all the major Indian cities. They are aggressive on their expansion plans.
Promotion
Big Bazaar started many new and innovative cross-sell and up-sell strategies in
Indian retail market. The various promotion techniques used at Big Bazaar include
"saal ke sabse saste teen din", Future Card (the card offers 3% discount), Shakti
Card,
Brand Endorsement by M. S. Dhoni, Exchange Offer - ‘Junk Swap Offer’, Point-of-

Purchase Promotions.
Advertising has played a crucial role in building of the brand. Big Bazaar
advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards.
People
They are one of the key assets for any organization. The salient features of staff of
Big Bazaar are: -
• Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern
retail.

• Well-dressed staff improves the overall appearance of store.
• Employees are motivated to think out-of-the-box. Retail sector is in growth stage,

so staff is empowered to take innovative steps.
• Employs close to 10,000 people and recruits nearly 500 people every month.
• Use of technology like scenario planning for decision making.
• Multiple counters for payment, staff at store to keep baggage and security guards
at every gate, makes for a customer-friendly atmosphere.
P a g e | 41
Process
The goods' dispatch and purchasing area has certain salient features which include:
-
• Multiple counters with trolleys to carry the items purchased.
• Proper display / posters of the place like (DAL, SOAP, etc.).
• Home delivery counters also started at many places.
Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the
current system and available facilities
facilities.
STUDY STORE
TABLE OF
BIG BAZAAR
NEAR RANCHI CLUB
M.G. ROAD RANCHI - 834001

This store is of 5 floor and divided into 5 levels based on the nature of products.
There are 47 departments
epartments in this store and 534 Human Resource employed.
As this store is big enough with 5 levels and 47 departments has long product range
and product depth. Ones a customer get inside the store he will find all kinds of
products available that may be Food item, Cosmetic, Electronic, Garments, Furniture
etc.
Because of these features it has a very good reputation in that area and customers
who are residing far away and in other areas they also visit the store.
P a g e | 42
STUDY STORE : Organisational Structure
TABLE OF
President
Vice - President
Marketing Category
HR Manager Finance Manager Operation Head
Manager Manager
Marketing Head HR Head Finance Head Category Head Store Manager
Asst Store
Manager
Dept Manager
Human Resource Visual

manger Merchandise

Asst. HR
Department
Information
Administration Manager
Technology
Cashing Marketing
Customer
Service Desk
P a g e | 43
RESEARCH METHODOLOGY
TABLE OF
Since the study is on retail sector first the detail study of the store is been conducted
about its Management team its structure the number of departments which all
brands does the store has, who are its suppliers about its warehouses.
Based on the topic objectives were set and to arrive at the opinion on objectives a
set of 100 questionnaires were designed of 10 questions and response is collected
from the customers who are visiting the store. For data collection Random
Convenient sampling method was ado
adopted
For this projectt the area of research is M.G Road.
OBJECTIVE OF THE THESIS
TABLE OF
To
o know the effective Marketing SStrategy
trategy which influence customer to purchase
p a
product of Big Bazaar in comparison to other retail company.
DATA COLLECTION METHOD

TABLE OF
Market research requires two types of data i.e. secondary data and primary data.
Primary data has been used abundantly for the study. Well
Well-structured
questionnaires were prepared & the survey was undertaken. Feedback for the
display has been taken by aski
asking
ng questions & observation has also done to gather
primary information.
There is also a use of secondary data, collected from the various journals, books, and
websites & from company managers.
P a g e | 44
• Primary data : Field Survey

• Secondary data : Big Bazaar records
Text Books and journals
Company Websites
• Area of research : M.G. ROAD

• Research approach : Survey method
SAMPLING METHOD
TABLE OF
Since the study is restricted to Retail sector, all the functional Departments of Big
Bazaar and the respondents are found at the store only so according to the
convenience randomly they are being picked so sampling method is used in this
study is Random Convenient Sampling.
Sample size : 100 respondents
Sampling Method : Random Convenience sampling
Sample Unit : Customer of Big bazaar

Measuring Tool : Questionnaire
P a g e | 45
ANALYSIS & INTERPRETATION
TABLE OF
Q No 1: Which store first comes to your mind when you think of purchasing a
product?
RESPONSE NO OF RESPONDENTS PERCENTAGE
Big bazaar 77 77%
Vishal Mega Mart 15 15%
Others retailer 8 8%
Total 100 100%
90%
80%
70%
60%

50%
40% 77% Series1
30%
20%
10%
15%
8%
0%
Big bazaar Vishal mega mart Others retailer
P a g e | 46
ANALYSIS:
From the survey, from 100 respondents, 77% of them gave 1st preference to Big
Bazaar 15% of them gave preference to Vishal Mega Mart and 8% were gave to
other retailer .
INTERPRETATION
Most of the customers are given 1st preference to Big Bazaar compare to other
retailers
Q No 2: From which source did you come to know about Big Bazaar outlet.
RESPONSE NO O
OF RESPONDENT PERCENTAGE
T .V Advertisement 23 23%
Hoardings 34 34%
News paper 31 31%
Buspaintings 12 12%
Total 100 100%
34%
31%
35%
30% 23%
25%
20%
12%
15%

10%
5% Series1
0%
P a g e | 47
ANALYSIS:
From the above graph i can come to know that, among 100 respondents, 23% of
them come to know about Big Bazaar through TV advt., 34% of the respondents told
that through Hoardings, 31% of them through news paper , and 12% came to know
through bus painting
INTERPRETATION:
Hoarding is the most influencing factor which is responsible for awareness of Big
Bazaar.
Q No 3: Are you aware of promotional offers conducted by big bazaar?
Response No of respondents Percentage
Yes 87 87%
No 13 13%
Total 100 100%
100%
90%
80%
70%

60%
50%
87% Series1
40%
30%
20%
10%
13%
0%
Yes No
P a g e | 48
ANALYSIS:
Among the 100 respondents, 87% of them they are aware of promotional offers,
13% told they have told that they are not aware.
INTERPRETATION:
87% of customers are aware of promotional activity in the big bazaar.
Q No 4: Please choose below the factor which attracted you most at the Big Bazaar.
Rates No of respondents percentage
Offer 51 51%
Service 9 9%
Quality 23 23%
Availability of products 17 17%
Total 100 100%
60%
51%
50%

40%
30% 23%
Series1
17%
20%
9%
10%
0%
Offer Service Quality Availability
of products
P a g e | 49
Analysis:
Among 100 respondent 51% of customer they have told that they are attracted by
the offers and 9% of them
hem told that they are attracted by service and 23% of them
told that they are attracted by quality and only 17% of them told that only for
availability of products
Interpretation:
Most of the people attracted towards big bazaar only for the promotional offers.
of So
offer is the most influencing factor among those.
Q No 5: Which of the following factors influence in your purchase decision?

Rates No of respondents percentage
Offer 43 43%
Service 11 11%
Quality 21 21%
Effective advertisement 25 25%
Total 100 100%
43%
45%
40%
35%
25%

30% 21%
25%
20% 11%
15%
10%
5% Series1
0%
P a g e | 50
ANALYSIS:
Among 100 respondent 43 of them told that offer is responsible for their purchase
decision and 9 of them told that serv
service
ice and 23 of them told that quality and only 25
of them told that effective advertisement
INTERPRETATION:
Among those factor offer is the emerging factor which is responsible for purchase
decision of buyers
Q No 6: Do you think the promotional activity of Big Baza

Bazaar
ar gives you clear
message?
Yes 77 77%
No 23 23%
Total 100 100%
77%
80%
70%
60%
50%
40% Series1

23%
30%
20%
10%
0%
Yes No
ANALYSIS:
Among 100 respondent 77 of them told that the promotional activities of big bazaar
gives clear message and 23 of them told that they do not understood.
P a g e | 51
INTEPRETATION:
Most of the people highly agree that promotional aactivity
ctivity of big bazaar gives clear
message
Q No: Will you advise anybody to visit Big Bazaar in your future shopping?
shopping

Yes 98 98%
No 2 2%
Total 100 100%
98%
100%
90%
80%
70%
60%
50% Series1
40%
30%
20%
2%
10%
0%
Yes No

ANALYSIS:
Among 100 respondents 98 of them told that they will advise others to visit big
bazaar in future shopping and only 2 of them told that they do not advise.
INTEPRETATION:
Most of the respondent they would like to advise others in future shopping.
shopping
P a g e | 52
Q No: Looking at the promotions of Big Bazaar does your purchase pattern
changes?

Yes 83 83%
No 17 17%
Total 100 100%
83%
90%
80%
70%
60%
50% Series1
40%
30% 17%
20%
10%
0%
1 2
ANALYSIS:

Among 100 respondent 83 of them told that these promotional offers changes their
purchase pattern and only 17 of them told do not change.
INTERPRETATION:
Most of the customer believed
ed that promotions is responsible for their purchase
decision.
P a g e | 53
Q No 9: Would
ould you like to make your purchase under unexpected offers?

Yes 94 94%
No 6 6%
Total 100 100%
94%
100%
90%
80%
70%
60%
50% Series1
40%
30%
20% 6%
10%
0%
Yes No
ANALYSIS:
Among 100 respondents 94 of them they are interested to buy products under

unexpected offers and only 6 of them told tha
that they do not buy.
INTERPRETATION:
Most of the customer interested to buy under unexpected offers only.
P a g e | 54
SURVEY FINDINGS
TABLE OF
• From the sample size of 100 samples it is found tha
thatt the Brand is well
positioned in the
he minds of customers because 77
77%% of the respondent’s
preference is Big Bazaar for their shopping.
• Among 100 respondents, 23% of people told that 1st they came to know
through T V advertisement and 34 34% of people told that through hoardings
31%% of them told that tthrough news paper and finally 12%% of them
the highly
agree that through bus painting.
• Among the 100 respondents, 87% of them told that they are aware of
promotional activities
ctivities of big bazaar .only 13
13% of them told that
hat they are not
aware of promotional activity of big bazaar .
• Among the 100 respondent 51 51%

% of them told that they are attracted towards
big
ig bazaar only for the offe
offers 9% of them told that service and 23%
23 of them
told that quality and only 17 17% of them told that due to availability of
products
• Among 100 respondent 43 43%

% of them agree that offers is the most emerging
factor influencing
ing purchase decision and only 11
11%% of them told that service
21% of told that quality and finally 25 25%% of them told that effective
advertisement is responsible for the purchase decision.

• Among 100 respondent 77
77%
% of them told that promotional activities of big
bazaar gives clear message and 23%% of them told that they did not
understood.
• Among 100 respondent 98% of people interest to advise others in future

shopping and only 2% of them not interest to advice.
• Among 100 respondent 83 83% them told that promotions of big bazaar changes
their
eir purchase pattern and only 17
17%% told that does not changes.
• Among 100 respondent 94% of them told that they are interested to buy
products under unexpected offers and 6% of told that they do not buy.
P a g e | 55
CONCLUSION
TABLE OF
Indian retail sector is witnessing one of the most hectic Marketing activities of all
times. The companies are fighting to win the hearts of customer who is God said by
the business tycoons. There is always a ‘first mover advantage’ in an upcoming
sector. In India, that advantage goes to “BIG BAZAAR”. It has brought about many
changes in the buying habits of people. It has created formats, which provide all
items less than one roof at low rates.
The consumer’s preferences are changin

changing g & they are moving from Traditional
Kirana stores to Modern Retail outlet. It’s the main challenge to the Modern retail
outlets to attract the customers towards them from that of competitors. To attract
more customers companies have to carry out the promo
promotional
tional activities in unique
way. BIG BAZAAR has maintained that uniqueness & has succeeded in attracting
customers.
The promotional activity of the company, which famous as Less Price than others as
it says ‘Nobody Sells Cheaper and Better!’ is made its pl
place
ace in minds of customer. As
the competition is becoming stiff in the market the activities conducted by the
company are unique, that have brought fruitful result to the company. Among them
sales Promotions is one of the leading activity or unique among al
alll other activities &
has high influence on the customer walk
walk-in.
P a g e | 56
BIBLIOGRAPHY
TABLE OF
• Buyer Behavior: http://buyerbehaviour.blogspot.com/2008/01/big-bazaar-

http://buyerbehaviour.blogspot.com/2008/01/big
freedom-sale-change--in.html
• Indian Retail Scenario: http://www.slideshare.net/theRedIndian/india-

http://www.slideshare.net/theRedIndian/india
retail-2008-big-bazaar
bazaar-scenario/
• Wikipedia: www.wikipedia.org
• "IT Happened in India" by Kishore Biyani
• "From Brand Vision to Brand Evaluation: The Strategic Process of Growing

Grow
and Strengthening Brands" by Leslie de Chernatony
• Kunde Model: http://www.kunde

http://www.kunde-co.com/Default.aspx?ID=325
co.com/Default.aspx?ID=325
• Economic Times: www.economicstimes.com
• Marketing Management: Philip Kotler

• Advertising and Sales: Promotion Belch and Belch
• Retail Management: Bajaj and Srivastav
• Research Methodology: Cooper and Schindler
P a g e | 57

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