Sandeep Report

EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR
EXCECUTIVE SUMMARY
The Indian retail industry is divided into organized and unorganized sectors.
India’s retail sector is wearing new clothes and with a three-year compounded annual growth rate
of 46.64%, retail is the fastest growing sector in the Indian economy. Traditional markets are
making way for new formats such as departmental stores, hypermarkets, supermarkets and
specialty stores. Western-style malls have begun appearing in metros and second-rung cities
alike, introducing the Indian consumer to an unparalleled shopping experience. However
organized retail is at a very nascent stage covering only 3% of retail market, which brings huge
opportunity to new players, with its present growth rate it is expected to grab 10% of retail
market within three-four years. The sector is the largest source of employment after agriculture,
and has deep penetration into rural India generating more than 10 per cent of India’s GDP.
Big Bazaar a hypermarket was established in the year 2001 with the vision to
address the hunger, i.e low price-premium quality, of middle and lower class population of the
country which is a huge chunk of opportunity. Big Bazaar is a chain of shopping malls in India
currently with 120 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.
Sales promotion is short term tool used to reward the loyal customer, stimulus to
buy more than the plan and attracts the brand switchers. Advertising offers reason to buy, sales
promotion offers an incentive to buy. One such tool used is Discounts where products are offered
at a price lesser than the MRP. Since the sales promotion involves Money, Time and Resource it
becomes very essential to evaluate the sales promotion from time to time. This report focuses on
“EVALUATION OF SALES PROMOTION – A case study of TASTY TREAT a brand of
BIG BAZAAR”. The study includes three product category: Biscuits, Snacks and Mango juice.
The study was conducted in Big Bazaar for the period of 60 days, and was conducted with
objectives:
1. To evaluate sales promotion with respect to tasty treat brand.
2. To study customer’s perception about sales promotion of tasty treat brand.
3. To study customer’s preferences towards the promoted brands.
4. To study customer satisfaction about the sales promotion of tasty treat brand.
5. To identify the factor influencing the brand choice.
KOUSALI INSTITUTE OF MANAGEMEMENT STUDIES, DHARWAD Page 1

BRAND OF BIG BAZAAR
RESEARCH METOHODLOGY:
The data was collected in two ways 1) Primary Data and 2) Secondary Data.
Selection of sample:
• Population : Hubli-Dharwad
• Sample size : 100
• Sample method : Random Sample
• Area of survey: In store (BIG BAZAAR).
Measurement and analysis technique:
• Simple percentage method
• Graphical representation using data code sheet
Major Outcomes of the Project:

1. The company achieved sales target (quantity) of Tasty Treat is in this year by
compromising on margin up to 8-9%.
2. The survey reveals that while choosing brand from biscuits, snacks or mango juice
category, tasty treat is given last preference. This is mainly because of lack of awareness,
their previous experience about the brand, their perception about the brand.
3. The brand preference pattern remains same if the entire available brand on display is
promoted. Only the unique promotion is influential on customers.
4. The main cause for selecting a brand from biscuits, snacks or mango juice category is
their previous experience i.e Taste
5. No means of communication regarding the Tasty Treat is done. Only visitor gets a chance
to know about the brand. The main reason for not preferring the Tasty Treat is
“unawareness factor”.
6. 42% of customers are satisfied with the present sales promotion. Remaining 52% of
customer did not notice the promotion mainly because of other brand loyal, perceived
value of the brand.
Limitations:
1. Project study is not an exact science, so one cant’ accept 100% result, only justified
solutions are given.
2. The sample size is very small when it comes to footfall.
3. The findings are inferences of the study are limited to Hubli-Dharwad City
4. As the sample size is very small, hence the findings cannot be generalized.

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5. Response of the respondent might be biased which might have affected the findings
of the survey.
CHAPTER – I
INTRODUCTION

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INTRODUCTION
Retailing is a sale of merchandise from a fixed location (such as kiranas,
hypermarket, mall etc) for final consumption by the customer. The concept of retailing can be
traced back to the times when man stopped producing their entire requirement by themselves and
trading came into existence. Indian retail industry is all set to take a new contour i.e from
unorganized to organized retailing. Although presently share of organized retailing is very low
compared to the other countries like US, China, organized retailing in India is 3% of total retail
industry. But the pace at which it is growing is the best indications that it will rule the market
within next few years. With the opening up of market for FDI it is expected to grow at rate
greater than the present rate, but it will affect the small and unorganized retailer to the large
extent.
Big bazaar, a division of Pantaloons retail(India)limited, was started in 2001 first in
Mumbai. Which now has grown to the 120 big bazaar across 72 cities in India. Pantaloons has
extended its reach from premium or brand oriented customer to value for money oriented
customer, which caters to the need of all sections of customers with its various types of retailing
formats pantaloons has received a great applause from its customer. The customer satisfying
approach of Pantaloon has been appreciated by the customer in the way of ever increasing walk-
ins. In order to keep pace with increasing competition the company has came up with its own
products i.e they are marketing the product under the brand names like Tasty treat, Care mate,
Clean mate, John Miller, DJ&C, AFL etc. To cater to need of a price sensitive customer these
own brands are often run on promotional offers which are competitive to market leaders.
Sales promotion is an important component of a company's marketing
communication strategy along with advertising, public relations, and personal selling. At its core,
sales promotion is a marketing activity that adds to the basic value proposition behind a product
(i.e., getting more for less) for a limited time in order to stimulate consumer purchasing. As this
definition indicates, sales promotion may be directed either at end consumers. Sales promotion
stems from the premise that any brand or service has an established perceived price or value, the
"regular" price or some other reference value. Sales promotion is believed to change this
accepted price-value relationship by increasing the value and/or lowering the price. Familiar
examples of consumer sales promotion tools include contests and sweepstakes, branded give-

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away merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free trials,
demonstrations, and point-accumulation systems.
Three issues clarify sales promotion. First, sales promotion ranks in importance with
advertising and requires similar care in planning and strategy development. Second, three
audiences can be targeted by sales promotion: consumers, resellers, and the sales force. And
third, sales promotion as a competitive weapon provides an extra incentive for the target
audience to purchase or support one brand over another. This last factor distinguishes sales
promotion from other promotional mix tactics. For example, unplanned purchases may be
directly related to one or more sales promotion offers.
Over recent years, sales promotion has become a particularly dynamic area within
the overall context of marketing communications. Although accurate figures are difficult to come
by, most industry pundits agree that, today, more money is spent below the line than above it.
Since the impact of sales promotion is, primarily, geared to the short term, it is inevitable that the
area should enjoy considerable growth at times of economic recession. Pressure on personal
levels of disposable income tends to make consumers significantly more price-sensitive, and
price-oriented sales promotions reflect this consumer pressure. Moreover, consumers have
become increasingly price- and value-sensitive. Instead of simply purchasing a particular brand,
many consumers use the basis of price in order to make their purchasing decisions. In many
categories, consumers have become increasingly used to the offer of some form of incentive.
Increasing numbers of brands are effectively forced to continue providing such incentives to
satisfy the needs of consumers. However, it is also true that this growth has been influenced by
changing attitudes among marketers. In an increasingly competitive retail environment, and with
the concentration of buying power into relatively few hands, manufacturers have turned to sales
promotion to achieve on-shelf differentiation between their own products and those of their
competitors. It well known that the opportunity for real product differentiation is diminishing as
a result of the convergence of technology.
The variety of sales promotion techniques provides manufacturers with a
comparatively easy method of distinguishing their product from those of the competition within
the retail environment. The retail trade has also imposed other pressures on manufacturers to
focus their attention on promotions. Rising sophistication on the part of retailers and,
importantly, direct access to brand sales data collected at the point of purchase, have resulted in

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retailers demanding higher levels of promotional support from their suppliers in return for
continued distribution and display levels. Retailers are now more aware than ever before of the
financial contribution which an individual brand can make towards its overall profitability. In
their efforts to improve their own margins, pressure is brought to bear on manufacturers to
increase their rate of sale by the use of sales promotional devices. Manufacturers have little
choice but to agree, or face the possibility of having their product removed from the shelves.
Moreover, since the appeal of retailer products is often based on price, sales promotion has
provided manufacturers with the ability to adjust the retail price to the consumer – in the short
term – and minimize the differential. Undoubtedly, a major influence has been the desire for
short-term sales achievement in its own right. Sales promotion techniques are often seen as a
means of achieving the increases in sales volume with the benefit of improved market share and,
importantly, the ability to utilize excess manufacturing capacity. Since sales promotion
potentially has an immediate impact on consumer sales, there has been a tendency for product
managers to turn to these techniques in order to achieve their sales objectives. At the same time,
pressure on margins has made for closer attention to the detail of the achievement of cost-
effective sales volume. Since the results of the application of many promotional devices can be
predicted with a high degree of accuracy, product management can be confident in their volume
forecasts. Similarly, with the increasing costs of other forms of marketing communications,
especially that of advertising, management has turned to areas which are perceived to be more
cost-effective – especially for the achievement of short-term sales. The progressive
fragmentation of audiences and the increase in media costs have tipped the balance in favour of
sales promotion techniques which are more likely to deliver demonstrable results. A further
factor is the growing belief of product and sales management in their ability to handle the
techniques of sales promotion. Unlike other areas of marketing communications, sales promotion
is rarely subjected to the same level of internal debate as would be the case with, say,
advertising.
In a crowded promotional environment it is challenging to retain loyal consumers.
Too frequent use of promotions may evoke indifferent attitude among consumers or shape deal
to deal buying. Predictability of promotions (promotions linked to festivals like Diwali) may
result in coinciding purchase with such promotions leading to loss of margin an opportunity loss

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sell at full price. It is very much essential to plan such activities which will synergies company’s
positioning and advertising campaign efforts rather than erode brand image or equity.
Therefore sales promotion is a double edged sword; if a proper use is made it can cut
competition and at the same time cluttering of promotion may affect the brand image. So it
becomes extremely important that company takes a proper care in implementing and evaluating
the performance sales from time to time.
This project is mainly concerned with evaluating such promotion which are running in
the big bazaar on the own brand tasty treat. Under the brand Tasty Treat big bazaar offers many
products to the customer but this study concentrates mainly on Biscuits, snacks (chips) and
Mango juice, which are currently being run on promotions.
TOPIC:
EVALUATION OF SALES PROMOTION – A case study of TASTY TREAT a brand of
BIG BAZAAR.
Need for study:

Sales promotion has some specific objective, a product is given on discount by
spending the money from the company’s profit pocket i.e a company has to compromise on its
margin. Also it involves time which is very precious to any company especially in retail industry,
and as it affects the brand image, sales promotion has to be evaluated from time to time.
As there are many ways to understand loyalty, there are also many ways to influence
and improve loyalty. Companies that measure customers beyond mere financial performance
levels can be shown to have stronger performance than non-measurement-driven companies in
multiple key indicators. A comparison of measurement-managed versus non-measurement-
managed organizations showed that (a) 83 percent of the measurement-managed group were
raced in the top third of their respective Indus-tries as compared to 52 percent for others, (b) 74
percent are recognized as industry leaders versus only 44 percent for non-measurement
organizations, (c) 80 percent realized a three-year positive return on investments as compared to
45 percent for non-measurement-managed organizations, and (d) a whopping 97 percent of
measurement-managed organizations experienced success in their last major change effort
compared to a 55-perccnt success rate for others.

BRAND OF BIG BAZAAR
Objectives of the study:

1. To evaluate sales promotion with respect to tasty treat brand.
2. To study customer’s perception about sales promotion of tasty treat brand.
3. To study customer’s preferences towards the promoted brands.
4. To study customer satisfaction about the sales promotion of tasty treat brand.
5. To identify the factor influencing the brand choice.
RESEARCH METOHODLOGY
The data was collected in two ways, which are detailed below: -
• Primary Data
• Secondary Data
PRIMARY DATA: -
The Data collected for a specific purpose for the first time is Original known as Primary Data.
The primary data was basically collected through Questionnaire Method.
The Questionnaire method is a powerful tool to collect the information a structured
Questionnaire involves in asking the questions in a prearranged order. This research contained a
questionnaire that had structured (prearranged order), open ended (free answer questions) and
close ended (limited answer can be given) questions. Some were also dichotomous questions are
made best use. The survey was conducted within the store, responses were collected from the
individuals who visit to big bazaar. Apart from the questionnaire the information is collected
from the sales forces who are the best source to get such information. A interaction with the
executives, assistant department managers, department managers and officials within the store is
a vital information, which is also made use of in the study.
SECONDARY DATA: -
• The data that is collected from the published sources i.e. not originally collected
for the first time is called secondary data. During the research the secondary data was
collected from Company website, Customer data base, Company report, Books and
publications, Related information from net

BRAND OF BIG BAZAAR
Selection of sample
• Population : Hubli-Dharwad
• Sample size : 100
• Sample method : Random Sample
• Area of survey: In store (BIG BAZAAR).
Measurement and analysis technique

• Simple percentage method
• Graphical representation using data code sheet

BRAND OF BIG BAZAAR
CHAPTER – II
INDUSTRY PROFILE
COMPANY PROFILE
CONCEPTUAL FRAME WORK

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INDUSTRY PROFILE
Background
The Indian retail industry is divided into organized and unorganized sectors. Organized retailing
refers to trading activities undertaken by licensed retailers, that is, those who are registered for
sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains,
and also the privately owned large retail businesses. Unorganised retailing, on the other hand,
refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner
manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors,
etc. India’s retail sector is wearing new clothes and with a three-year compounded annual growth
rate of 46.64 per cent, retail is the fastest growing sector in the Indian economy. Traditional
markets are making way for new formats such as departmental stores, hypermarkets,
supermarkets and specialty stores. Western-style malls have begun appearing in metros and
second-rung cities alike, introducing the Indian consumer to an unparalleled shopping
experience. The Indian retail sector is highly fragmented with 97 per cent of its business being
run by the unorganized retailers like the traditional family run stores and corner stores. The
organized retail however is at a very nascent stage though attempts are being made to increase its
proportion to 9-10 per cent by the year 2010 bringing in a huge opportunity for prospective new
players. The sector is the largest source of employment after agriculture, and has deep
penetration into rural India generating more than 10 per cent of India’s GDP.
Comparative Penetration of Organised Retail (in %)

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Source: Ernst &Young, the Great Indian Retail Story, 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank 3rd by
2010 just behind US and China. On one hand where markets in Asian giants like China are
getting saturated, the AT Kearney's 2006 Global Retail Development Index (GRDI), for the
second consecutive year Placed India the top retail investment destination among the 30
emerging markets across the world. Over the past few years, the retail sales in India are hovering
around 33-35 per cent of GDP as compared to around 20 per cent in the US.
The table gives the picture of India’s retail trade as compared to the US and China.
Retail Trade – India, US and China

Trade Employment Shops Organized sector share
(US$ billion) ( %) (million) ( %)
India 180-394 7 12 2-3
China 360 12 2.7 20
US 3800 12.6-16 15.3 80
Source: The Economist, 2006

The last few years witnessed immense growth by this sector, the key drivers being changing
consumer profile and demographics, increase in the number of international brands available in
the Indian market, economic implications of the Government increasing urbanization, credit
availability, improvement in the infrastructure, increasing investments in technology and real
estate building a world class shopping environment for the consumers. In order to keep pace with
the increasing demand, there has been a hectic activity in terms of entry of international labels,
expansion plans, and focus on technology, operations and processes. This has lead to more
complex relationships involving suppliers, third party distributors and retailers, which can be
dealt with the help of an efficient supply chain. A proper supply chain will help meet the
competition head-on, manage stock availability; supplier relations, new value-added services,
cost cutting and most importantly reduce the wastage levels in fresh produce.

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Large Indian players like Pantaloons, Reliance, Ambanis, K Rahejas, Bharti AirTel, ITC
and many others are making significant investments in this sector leading to emergence of big
retailers who can bargain with suppliers to reap economies of scale. Hence, discounting is
becoming an accepted practice. Proper infrastructure is a pre-requisite in retailing, which would
help to modernize India and facilitate rapid economic growth. This would help in efficient
delivery of goods and value-added services to the consumer making a higher contribution to the
GDP. International retailers see India as the last retailing frontier left as the China’s retail sector
is becoming saturated. However, the Indian Government restrictions on the FDI are creating
ripples among the international players like Walmart, Tesco and many other retail giants
struggling to enter Indian markets. As of now the Government has allowed only 51 per cent FDI
in the sector to ‘one-brand’ shops like Nike, Reebok etc. However, other international players are
taking alternative routes to enter the Indian retail market indirectly via strategic licensing
agreement, franchisee agreement and cash and carry wholesale trading (since 100 per cent FDI is
allowed in wholesale trading).
Current Status
India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to
reach $17 billion by 2010. The Indian retail market is estimated at US$ 350 billion. But
organised retail is estimated at only US$ 8 billion. However, the opportunity is huge-by 2010,
organised retail is expected to grow at 6 per cent by 2010 and touch a retail business of $ 17
billion as against its current growth level of 3 per cent which at present is estimated to be $ 6
billion, according to the Study undertaken by The Associated Chambers of Commerce and
Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping point. India is currently
the ninth largest retail market in the world. And it is names of small towns like Dehradun,
Vijayawada, Lucknow and Nasik that will power India up the rankings soon.
Organised retail in India has the potential to add over Rs. 2,000 billion (US$45 billion) business
by the Year 2010 generating employment for some 2.5 million people in various retail operations
and over 10 million additional workforces in retail support activities including contract
production & processing, supply chain & logistics, retail real estate development & management
etc. It is estimated that it will cross the $650-billion mark by 2011, with an already estimated
investment of around $421 billion slated for the next four years.

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Organized Retail Penetration across categories (%)
Source: E&Y, the Great Indian Retail Story, 2006

As noticed in the figure above, the Organized Retail Penetration (ORP) is the highest in footwear
with 22 per cent followed by clothing. Though food and grocery account for largest share of
retail spend by the consumer at about 76 per cent, only 1 per cent of this market is in the
organized sector. However, it has been estimated that this segment would multiply five times
taking the share of the organized market to 30 percent in the coming years.
Segment analysis
The structure of Indian retail is developing rapidly with shopping malls becoming increasingly
common in the large cities and development plans being projected at 150 new shopping malls by
2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to
co-exist with the modern formats of retailing. Modern retailing has helped the companies to
increase the consumption of their products for example: Indian consumers would normally
consume the rice sold at the nearby kiranas viz. Kolam for daily use. With the introduction of
organized retail, it has been noticed that the sale of Basmati rice has gone up by four times than it
was a few years back; as a superior quality rice (Basmati) is now available at almost the same
price as the normal rice at a local kirana. Thus, the way a product is displayed and promoted
influences its sales. If the consumption continues to grow this way it can be said that the local
market would go through a metamorphoses of a change and the local stores would soon become
the things of the past or restricted to last minute unplanned buying.

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Food and grocery retail
The food business in India is largely unorganized adding up to barely Rs.400 billion, with other
large players adding another 50 per cent to that. The All India food consumption is close to
Rs.9,000 billion, with the total urban consumption being around Rs.3,300 billion. This means
that aggregate revenues of large food players is currently only 5 per cent of the total Indian
market, and around 15-20 per cent of total urban food consumption. Most food is sold in the
local ‘wet’ market, vendors, roadside push cart sellers or tiny kirana stores. According to
McKinsey report, the share of an Indian household's spending on food is one of the highest in the
world, with 48 per cent of income being spent on food and beverages.
Apparel retail
The ready-mades and western outfits are growing at 40-45 per cent annually, as the market teems
up with international brands and new entrants entering this segment creating an Rs.5 billion
market for the premium grooming segment. The past few years has seen the sector aligning itself
with global trends with retailing companies like Pantaloons, Shoppers’ stop and Crossroads
entering the fray to entice the middle class. However, it is estimated that this segment would
grow to Rs. 3 billion in the next three years.
Gems and Jewellery retail
The gems and jewellery market is the key emerging area, accounting for a high proportion of
retail spends. India is the largest consumer of gold in the world with an estimated annual
consumption of 1000 tonnes, considering actual imports and recycled gold. The market for
jewellery is estimated as upwards of Rs. 650 billion.
Pharmaceutical retail
The pharma retailing is estimated at about Rs. 300 billion, with 15 per cent of the 51 lakh retail
stores in India being chemists. Pharma retailing will follow the trend of becoming more
organised and corporatised as is seen in other retailing formats (food, apparel etc). A few
corporates who have already forayed into this segment include Dr Morepen (with Lifespring and
soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4 from Global Healthline
Pvt Ltd, and the recently launched CRS Health from SAK Industries. In the south, RPG group’s
Health & Glow is already in this category, though it is not a pure play pharma retailer but more
in the health and beauty care business.

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Music Retail
The size of the Indian music industry, as per this Images-KSA Study, is estimated at Rs.11
billion of which about 36 percent is consumed by the pirated market and organized music
retailing constitutes about 14 percent, equivalent to Rs.1.5 billion.
Book retail
The book industry is estimated at over Rs. 30 billion out of which organized retail accounts for
only 7 per cent (at Rs.2.10 billion). This segment is seen to be emerging with text and curriculum
books accounting to about 50 per cent of the total sales. The gifting habit in India is catching on
fast with books enjoying a significant share, thus expecting this sector to grow by 15 per cent
annually.
Consumer durables retail
The consumer durables market can be stratified into consumer electronics comprising of TV sets,
audio systems, VCD players and others; and appliances like washing machines, microwave
ovens, air conditioners (A/Cs). The existing size of this sector stands at an estimated US$ 4.5
Billion with organized retailing being at 5 per cent.
RETAILING FORMATS
Modern retailing has entered India in form of sprawling malls and huge complexes offering
shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of
formats, from discount stores to supermarkets to hypermarkets to specialty chains. However,
kiranas still continue to score over modern formats primarily due to the convenience factor. The
organized segments typically comprise of a large number of retailers, greater enforcement of
taxation mechanisms and better labour law monitoring system. It's no longer about just stocking
and selling but about efficient supply chain management, developing vendor relationship quality
customer service, efficient merchandising and timely promotional campaigns. The modern retail
formats are encouraging development of well-established and efficient supply chains in each
segment ensuring efficient movement of goods from farms to kitchens, which will result in huge
savings for the farmers as well as for the nation. The Government also stands to gain through
more efficient collection of tax revenues. Along with the modern retail formats, the non-store
retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct to home
service. Network marketing has been growing quite fast and has a few large players today. Gas

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stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies
appearing in many outlets. In the coming years it can be said that the hypermarket route will
emerge as the most preferred format for international retailers stepping into the country. At
present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more. Estimates indicate that this sector will have
the potential to absorb many more hypermarkets in the next four to five years.
TYPES OF RETAIL FORMATS

Specialty Store: Narrow product line with deep assortment, viz apparel stores, book stores etc.
A clothing store would be a single line store, men's clothing store would be limited line store &
men's custom-shirt store would be a super specialty store. Example: The limited, Body Shop.
Departmental Store: Several product lines-typically clothing, household goods, home
furnishings- with each line operated as a separate department managed by specialist buyers or
merchandisers.
Example: Sears, Bloomingdale’s.
Supermarkets: Relatively large, low-cost, low-margin, high volume, self-service operation
designed to serve total needs for food, laundry & household maintenance products.
Example: Kroger, Safeway.
Convenience Stores: Relatively small store located near residential area, open long hours, seven
days a week and carrying a limited line of high-turnover convenience products at slightly higher
prices.Example: 7-Eleven, Circle K.
Discount Store: Standard merchandise sold at lower prices with lower margins and higher
volumes. True discount stores regularly sell merchandise at lower prices and offer mostly
national brands. Example: Wal-Mart, Kmart.
Retail Organization mainly falls into 4 major categories

1. Corporate chains: Example > Pantaloons, Westside
2. Retail Co-operative: Example > Amul, Samavaika, Khadi Gram Yudog
3. Consumer Co-operative: Example > Apna Bazar
4. Franchise Organization: Example > Monginis, Café Coffee day.

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Off-price retailer: Merchandise bought at less than regular wholesale prices & sold at less than
retail; often-leftover goods, overruns and irregulars obtained at reduced prices from
manufacturers or other retailers.
Factory outlets are owned and operated by manufacturers and normally carry the manufacturer's
surplus, discontinued or irregular goods.
Example: Mikasa(dinnerware), Dexter (shoes)
Independent off-price retailers are owned & run by entrepreneurs or by divisions of larger
retail corporations. Example: T.J.Maxx, Filene's Basement.
Warehouse clubs (or wholesale clubs) sell a limited selection of brand name grocery items,
appliances, clothing and other goods sold at deep discounts to members who pay an annual
membership fees. Warehouse clubs serve small businesses & group members from government
agencies, nonprofit organizations and some large corporations. They operate in huge, low-
overhead, warehouse like facilities & offer few frills. They offer rock bottom prices- typically
20% to 40% below super market and discount stores prices but make no home deliveries and
accept no credit cards. Example: Sam's Clubs, Max Clubs.
Superstore: Averages 35,000 square feet of selling space traditionally aimed at meeting
consumers' total needs for routinely purchased food and non food items. Usually offer services
such as laundry, dry cleaning, shoe repair, check cashing & bill paying.
A new group called "category killers" carries a deep assortment in a particular category & a
knowledgeable staff. Example: Borders books & Music, IKEA.
Combination stores are a diversification of the supermarket store into the growing drug-and-
prescription field. Combination food & drug stores average 55,000 square feet of selling space.
Example: Jewel & Osco stores.
Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket,
discount & warehouse retailing principles. Product assortment goes beyond routinely purchased
goods & includes furniture, large & small appliances, clothing items and many other items. Bulk
display & minimum handling by store personnel with discounts offered to customers who are
willing to carry heavy appliances and furniture out of the store. Hypermarkets originated in
France. Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain),
Meijer's (Netherlands)

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Traditionally, the small store (kirana) retailing has been one of the
easiest ways to generate self-employment, as it requires minimum investments in terms of land,
labour and capital. These stores are not affected by the modern retailing as it is still considered
very convenient to shop. In order to keep pace with the modern formats, kiranas have now
started providing more value-added services like stocking ready to cook vegetables and other
fresh produce. They also provide services like credit, phone service, home delivery etc. The
organized retailing has helped in promoting several niche categories such as packaged fruit
juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health
foods, which are generally not found in the local kirana stores. Looking at the vast opportunity in
this sector, big players like Pantaloons, Reliance and K Rahejas has announced its plans to
become the country's largest modern retainers by establishing a chain of stores across all major
cities.
List of retailers that have come with new formats
Retailer Current Format New Formats,Experimenting with
Pantaloon Own brand store Hypermarket

Shopper’s Stop Department Store Quasi-mall
Ebony Department Store Quasi-mall, smaller outlets, adding food

retail
Crossword Large bookstore Corner shops
Piramyd Department Store Quasi-mall, food retail
Subhiksha Supermarket Considering moving to self-service
Vitan Supermarket Suburban discount store
Foodworld Food supermarket Hyper market, Foodworld express
Globus Department Store Small fashion stores
Bombay Bazaar Aggregation of Kiranas
Efoodmart Aggregation of Kiranas
Metro Cash and Carry
S Kumar’s Discount Store

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Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad,
Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails.
Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon
Retail because many small cities like Nagpur have a student population, lower real estate costs,
fewer power cuts and lower levels of attrition. However, retailers need to adjust their product
mix for smaller cities, as they tend to be more conservative than the metros. In order for the
market to grow in modern retail, it is necessary that steps are taken for rewriting laws,
restructuring the tax regime, accessing and developing new skills and investing significantly in
India.
Merger and acquisition activity:
India witnessed a record number of M&A deals in the first half of 2006, which were collectively
worth US$ 25.6 billion. A significant number of deals have being carried out Corporate Catalyst
India A report on Indian Retail Industry in the Indian retail sector in the past few months in order
to acquire a larger share in the growing domestic market and to compete against the prospective
global and domestic players. The table below shows some recent deals that have taken place in
the Indian retail sector:
Year Acquired/ JV Acquirer Nature of Stake Consideration
Company/Target Business (%) (US$ million)
2005 Liberty Shoes Future group Retail 51 3

(Footwear)
2005 Indus – League Future group Retail clothing 68 5
Clothing
2005 Odyssey India Deccan Leisure retail 100 14
Chronicle chain
Holdings (books, music,
toys)
2005 Landmark Tata Trent Books, music, 74 24
Accessories
2006 Bistro TGI Friday’s Restaurant 25 N/A
Hospitality (Food
retail)
2006 Indus League Etam group, Lingerie and 50 (JV) 8
Clothing (Future group France women’s wear
company) retailing
Source: PricewaterhouseCoppers, Asia-Pacific M&A bulletin, Mid year 2006.
COMPETITION OVERVIEW

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Pantaloon Retail
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-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 6
million square feet of retail space, has over 140 stores across 72 cities in India and employs over
30,000 people. The company registered a turnover of Rs 20.19 billion for FY 2005-06. 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 hygiene. 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, Talwalkar’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.
Lifestyle International
Lifestyle International Holdings Ltd’s principal activity is the operation of lifestyle department
store and retail outlets. It focuses on high-end department store format. As of December 31,
2005, Lifestyle International operated its retailing business through two brand names, SOGO and
Jiuguang. The SOGO Department Stores consists of the Company's flagship department store,
SOGO CWB, in Causeway Bay, Hong Kong, and the Tsimshatsui store, which features a slightly
different format that targets younger group of customers. The Jiuguang Department Store, which
is located in Shanghai, has a similar business format as that of the SOGO store. During the year
ended December 31, 2005, it launched SOGO CLUB, a lifestyle service center. Some of the
Company’s subsidiaries include Asia Kinetic Limited, Congenial Company Limited, Eastlord
Development Limited, Everwin Worldwide Limited and Fine Shine Limited.
RPG Retail
RPG Enterprises is one of India’s largest business conglomerates, with a turnover of US$ 1.65
billion (Rs 7,472 crore) and assets worth US$ 1.8 billion. Since its inception in 1979, RPG
Enterprises has been one of the fastest growing groups in India with more than 20 companies

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operating successfully in 7 business sectors: Retail, IT & Communications, Entertainment,
Power, Transmission, Tyres and Life Sciences. Spencer’s retail is the largest supermarket chain
in India. Spencer’s retail offers the complete gamut of products & durables ranging from bread to
bed covers; from toothpaste to television. Spencer’s today is operating across 80 stores spread
across 20 cities in the country with a retail trading area of more than half a million square feet,
and rapidly growing. Spencer’s Retail is located in various parts of India like Chennai,
Hyderabad, Vizag, Bangalore, Mumbai, Aurangabad, Pune, Ghaziabad, Faridabad, Delhi,
Cochin, Trivandrum and many more to come by this financial year.
Shopper’s Stop
The foundation of Shoppers’ Stop was laid on October 27, 1991 by the K. Raheja Corp. group of
companies. From its inception, Shoppers’ Stop has progressed from being a single brand shop to
becoming a Fashion & Lifestyle store for the family. Shoppers’ Stop is the only retailer from
India to become a member of the prestigious Intercontinental Group of Departmental Stores
(IGDS). The IGDS consists of 29 experienced retailers from all over the world, which include
established stores like Selfridges (England), Karstadt (Germany), Shanghai No. 1 (China),
Matahari (Indonesia), Takashimaya (Japan), C K Tang (Singapore), Manor (Switzerland) and
Lamcy Plaza (Dubai). This membership is restricted to one member organization per
country/region.
Trent (Tata)
Trent (Tata) was established in 1998, Trent operates some of the nation’s largest and fastest
growing retail store chains. A beginning was made in 1998 with Westside, a lifestyle retail chain,
which was followed up in 2004 with Star India Bazaar, a hypermarket with a large assortment of
products at the lowest prices. In 2005, it acquired Landmark, India’s largest book and music
retailer. In a recently signed deal, Trent has agreed to anchor 12 malls set up by DLF Universal
Ltd across the country, at its Westside, Landmark and Star India Bazaar outlets. This amounts to
about 27 locations, totaling to about a million square feet of space.
Vivek Ltd
Vivek Limited, is the largest Consumer Electronics & Home Appliances retail chain in India,
with 14 world class showrooms in Chennai, Bangalore and Salem; covering a retail space area of
over 1,00,000 sq. ft and a turnover of over Rs. 1 billion (US $ 23 Million). Its brand, VIVEKS, is
now a household name. The group’s turnover, comprising of interests in distribution of consumer

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products; finance, safe deposit lockers; property development and real estate, is about 2 Billion
(US $ 46 Million). Vivek Ltd proposes to expand its operations in Karnataka and also open
outlets in Andhra Pradesh. The company is working on a plan to open three retail outlets in
Mysore, Hubli and Mangalore in Karnataka and in Hyderabad, Vijayawada and Visakhapatnam
in Andhra Pradesh. Viveks currently has 22 showrooms in 5 cities.
INVESTMENT POLICY AND INITIATIVES
FDI Policy in the Retail Sector:
India has kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15
million small storeowners and only allows 51 per cent foreign investment in single-brand retail
with prior Government permission. FDI is also allowed in the wholesale business. Single-brand
retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own.
Metro is already operating through the cash-and-carry wholesale mode.
The policy makers continue to explore areas where FDI can be invited without hurting
the interest of local retail community. Government is considering opening up of the retail trading
for select sectors such as electronic goods, stationery, sports goods, and building equipment.
Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods,
electronics and stationery is also being contemplated. The Government has to walk a tightrope to
ensure a `level playing field' for everyone. The policy of permitting 51 per cent FDI in single-
brand product retailing has led to the entry of only a few global brands such as Nike (footwear),
Louis Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear), Lladro (porcelain
goods), Fendi (luxury products), Damro (knock-down furniture), Argenterie Greggio (silverware,
cutlery, traditional home accessories and gift items) and Toyota (retail trading of cars), into retail
trading. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to
make a presence through retailing directly.
Business models for entry in Indian markets

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Due to the FDI restrictions the international players are looking for alternative avenues to enter
the Indian markets. However FDI restrictions in retailing have not deterred prominent
international players from setting up shops in India.
In recent developments, the Australian retail giant Woolworth Ltd made in innovative entry in
India’s retail space, with India’s Tata group. The Tata group has floated Infiniti Retail Ltd, in
venture with which will sell consumer goods and electronics across the country. Infiniti Retail
will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusion of Rs 4
billion. This Tata retail venture joined hands with Australian retail giant Woolworths Ltd, which
currently operates more than 2,000 stores in 12 different formats. While Infiniti will own and run
retail operations in India, Woolworths, which has attained notable success in selling electronics
and consumer goods through its Dick Smith Electronics chain, will provide technical support and
strategic sourcing facilities from its global network. At present entry into India’s retail sector can
be done in multi branding also which has been opened for FDI very recent but previously there
are three different routes through which FDI flows in the Indian retail sector. The chart below
shows the current formats permitted by the Government of India for the international players.

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Current entry options for foreign players
Franchise agreements • Most widely used entry route by multinational retailers

• Fast food retailer Domino’s entered India through master
franchise root while Pizza Hut entered through regional
franchisee
Cash and Carry • 100% FDI is allowed in wholesale trading which involves
wholesale trading building of a large distribution infrastructure to assist local
manufacturers
• The wholesaler deals only with smaller retailers and not
consumers
• Metro AG of Germany was the first significant global
player to enter India through this route
Strategic licensing • Foreign company enters into a licensing agreement with a

agreements domestic retailer
• Mango, the Spanisn apparel brand has entered India
through this route with an agreement with Piramyd,
Mumbai
• SPAR entered into a similar agreement with Radhakrishna
Foodlands Pvt. Ltd
COMPANY PROFILE

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BOARD OF DIRECTORS OF FUTURE GROUP
Mr. Kishore Biyani Managing Director & FUTURE GROUP CEO
Mr. Gopikishan Biyani Wholetime Director
Mr. Rakesh Biyani Wholetime Director
Mr. Shailesh Haribhakti Director
Mr. S. Doreswamy Director
Dr. Darlie Koshy Director
Mr. Anil Harish Director
Ms. Anju Poddar Director
Ms. Bala Deshpande Director
Mr. Ved Prakash Arya Director
Group Vision
Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in the
most profitable manner.
GROUP MISSION
We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination shall be
the driving force to make us successful.
CORE VALUE
• Indianness: confidence in ourselves.

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• Leadership: to be a leader, both in thought and business.
• Respect & Humility: to respect every individual and be humble in our conduct.
• Introspection: leading to purposeful thinking.
• Openness: to be open and receptive to new ideas, knowledge and information.
• Valuing and Nurturing Relationships: to build long term relationships.
• Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
• Adaptability: to be flexible and adaptable, to meet challenges.
Flow: to respect and understand the universal laws of nature.
Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in
both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai
(Bombay), the company operates over 16 million square feet of retail space, has over 1000 stores
across 73 cities in India and employs over 30,000 people. The company’s leading formats include
Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food
Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of
modern retail like choice, convenience and quality and Central, a chain of seamless destination
malls. Some of its other formats include Brand Factory, Blue Sky, aLL, Top 10 and Star and
Sitara. The company also operates an online portal, futurebazaar.com. Future Value Retail
Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. This entity has been
created keeping in mind the growth and the current size of the company’s value retail business, led
by its format divisions, Big Bazaar and Food Bazaar. The company operates 120 Big Bazaar
stores, 170 Food Bazaar stores, among other formats, in over 70 cities across the country, covering
an operational retail space of over 6 million square feet. As a focussed entity driving the growth of
the group's value retail business, Future Value Retail Limited will continue to deliver more value
to its customers, supply partners, stakeholders and communities across the country and shape the
growth of modern retail in India. A subsidiary company, Home Solutions Retail (India) Limited,
operates Home Town, a large-format home solutions store, Collection i, selling home furniture
products and eZone focused on catering to the consumer electronics segment.
Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire
Indian consumption space.

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FUTURE GROUP
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading
business houses with multiple businesses spanning across the consumption space. While retail
forms the core business activity of Future Group, group subsidiaries are present in consumer
finance, capital, insurance, leisure and entertainment, brand development, retail real estate
development retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group
operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations
across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000
people and is listed on the Indian stock exchanges. The company follows a multi-format retail
strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle
segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless
malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines
the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.
The group’s speciality retail formats include supermarket chain - Food Bazaar, sportswear retailer -
Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and rural retail
chain - Aadhaar, among others. It also operates popular shopping portal -
Future Group believes in developing strong insights on Indian consumers and building businesses
based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate
credo is, ‘Rewrite rules, Retain values.’
Persons constituting “Group” coming within the definition of “Group” for the purpose of
Regulations 3(1)(e) of the Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 1997, includes the following persons:
1. Mr. Kishore Biyani 11. Pantaloon Industries Limited
2. Mr. Gopikishan Biyani 12. Varnish Trading Private Limited
3. Mr. Laxminarayan Biyani 13. Manz Retail Private Limited
4. Mr. Vijay Biyani 14. Erudite Trading Private Limited
5. Mr. Sunil Biyani 15. Chaste Investrade Private Limited
6. Mr. Anil Biyani 16. Future Realtors India Private Limited
7. Mr. Rakesh Biyani 17. Future Capital Investment Private Limited
8. Ms. Ashni Biyani 18. Future Ideas Company Limited
9. Mr. Vivek Biyani 19. Akar Estate & Finance Private Limited

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10. PFH Entertainment Limited
SUBSIDIARIES AND ASSOCIATES

FUTURE GROUP has four subsidiaries (i) Home Solutions Retail (India) Limited (“HSRIL”) (ii)
PFH Investment Advisory Company Limited (“PIACL”) (iii) PAN India Restaurants Limited
(“PIRL”) (iv) Pantaloon Food Product (India) Limited (“PFPIL”)
I. Home Solutions Retail (India) Limited

Home Solutions Retail (India) Limited was incorporated under the Companies Act, 1956 on
October 4, 2004 and has its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off.
Jogeshwari Vikhroli Link Road, Jogeshwari (East), Mumbai 400 060 . The main business of Home
Solutions Retail (India) Limited is to act as general retailers in the home textiles and furnishing
business. The stores will offer customised home solutions by in-house designers, fabrics, tailoring
facilities and innovative services like budget homes etc. It will cater to home management
requirements and products, including furnishings and textiles, furniture, consumer electronics,
home electricals and home services
II. PFH Investment Advisory Company Limited

PFH Investment Advisory Company Limited was incorporated under the Companies Act, 1956 on
December 31,2004. Its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off.
Jogeshwari Vikhroli Link Road,Jogeshwari (East), Mumbai 400 060. The main business of PFH
Investment Advisory Company Limited is to carry on the business of providing financial
investment advisory services, management and facilitation services, including but not limited to
identifying investment opportunities, providing investment recommendations and consultancy
service for making available infrastructure to venture capital funds, including the trustees,
beneficiaries and contributories of such fund, other funds, trusts, investment companies, joint
ventures, corporate, institutional, group and individual investors.
III PAN India Restaurants Limited

PAN India Restaurants Limited was incorporated under the Companies Act, 1956 on February 7 ,

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2005. Its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari
Vikhroli Link Road, Jogeshwari (East), Mumbai 400 060 . The main business of PAN India
Restaurants Limited is to carry on the business of quick service restaurants and food courts through
restaurants, food court, hotels, eating houses, dhabas, bars, cafeterias, resorts, club houses,
roadhouses, motels, holiday camps, caravans, site and apartment housekeeper, retail format stores,
hypermarkets, supermarkets, mega stores/discount stores, departmental stores, shoppers plaza,
direct to home and mail order catalogue through internet and other forms for all food products and
services and amusement and recreation parks/facilities, and casinos and gaming facilities of every
kind or sort including providing all attendant conveniences, amenities and facilities adjunct and to
serve food and food products.
IV Pantaloon Food Product (India) Limited
Pantaloon Food Product (India) Limited was incorporated under the Companies Act, 1956 on
April 13, 2005. Its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off.
Jogeshwari Vikhroli Link Road,Jogeshwari (East), Mumbai 400 060 .
The main business of Pantaloon Food Product (India) Limited is to manufacture and supply
food products.
Associates Companies
I) Kshitij Venture Capital Fund
Kshitij Venture Capital Fund (“KVCF”) is a domestic venture capital fund registered with the
Securities and Exchange Board of India. KVCF was set up under an indenture of trust dated
December 15, 2004. While PRIL is the Settlor, IL&FS Trust Company Limited is the the
trustees. PFH Investment Advisory Company Limited was appointed as the investment
advisor to KVCF to manage the business affairs of the Trust vide Investment Advisory
Agreement dated April 14, 2005.
KVCF has been set up to invest in entities engaged in the real estate sector dealing more
specifically in immovable property of any kind and any rights therein. KVCF has limited
operations, hence the financials are not available.
II) Galaxy Entertainment Corporation Limited

Galaxy Entertainment Corporation Limited (“Galaxy”) was incorporated under Companies

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Act, 1956 on August 13, 1981. Its registered office is at 54, Free Press Marg, 215 Nariman
Point, Mumbai 400 021.
We have acquired 20,00,000 equity shares constituting 15.73% stake in the company through
a Share Subscription Agreement dated March 4, 2005.
Galaxy is currently engaged in the business of leisure and entertainment, running restaurants,
bowling alley and various games. Galaxy has two subsidiaries viz; Galaxy Rain Restaurants
Private Limited and Ceezee Foods Private Limited.
Galaxy has two subsidiaries:

a) Ceeze Foods Private Limited
Ceeze Foods Private (“CFPL”) was incorporated under Companies Act, 1956 on April 13,
2000. Its registered office is at A-602, Prathamesh, Raghuvanshi Mills Compound, Lower
Parel, Mumbai – 400 013.
The Company is engaged in the business of running directly or indirectly, through franchising
or otherwise within India or outside India restaurants, hotels, shopping malls, swimming
pools, clubs and other recreational facilities of all kinds.
b) Galaxy Rain Restaurants Private Limited

Galaxy Rain Restaurants Private Limited was incorporated under Companies Act, 1956 on
April 12, 2000. Its registered office is at A-602, Prathamesh, Raghuvanshi Mills Compound,
Lower Parel, Mumbai – 400 013. Galaxy Rain Restaurants Private Limited is a wholly
owned subsidiary of Galaxy.
The main object of the Company is to carry on business of restaurants, cafes, refreshments
rooms, clubs and casinos of every sort and kind, to establish shops, canteens, kitchens, and
any other establishments, for this purpose and for the sale of food and drink of every sort and
kind and to arrange for and provide all manner of entertainment, amusements, recreation and
instruction for the public.
JOINT VENTURE COMPANIES

I. Planet Sports Private Limited (India)

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Planet Sports Private Limited (India) was incorporated under the Companies Act, 1956 on
November 15,1999. Its registered office is at 7A & 8A, Gaurav Towers, Malviya Nagar.
Jaipur, Rajasthan. They have acquired 28,40,880 equity shares constituting 49% stake in the
company vide Joint Venture agreement dated February 2, 2005. Planet Sports Private Limited
(India) is a sports, leisure and lifestyle retail store. There are 25 Planet Sports Stores in Inida. The
product range includes footwear, apparel, caps, accessories, tennis racquets, golf clubs and balls,
swimwear and accessories, water sports etc. Planet sports is the exclusive franchisee of The
Athelete’s Foot-footwear chain in India. Planet Sports wholly owned subsidiary, Supreme Trade
Links Limited is the exclusive franchisee for Marks & Spencer stores in India. Besides, it is the
exclusive licensee and distributor for brands such as Puma and Speedo in India.
II. Proposed Joint Venture with Liberty Shoes Limited
An MOU has been signed with Liberty Shoes Limited on August 29, 2005 to enter into a Joint
Venture for setting up a chain of stores for retailing of footwear and other accessories. For this
purpose the new company is proposed to be set up , with an authorized share capital of Rs. 250
million. Under the terms of the Agreement, company will acquire a 51% stake in the new company
by subscribing to 12.75 million equity shares of Rs.10 each at par aggregating to Rs. 127.5 million
as equity contribution.
BIG BAZAAR
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. Major 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,

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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.
Store study
Big Bazaar
Akshay centre, Akshay Park
GOKUL ROAD, HUBLI-580030
Phone No: 0836-4266555
This store is of 2 flour and divided into 2 levels based on the nature of products. There are 21
departments in this store and 120 Human Resource employed.
As this store is big enough with 2 levels and 21 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.
Level 1
Departments
1) Depot:
2) NBD (New Business Development)
3) Gold Bazaar
4) Mobile Bazaar
5) Star Sitara
6) Shringar
7) Ladies Department
8) Men’s Department
9) Furniture Department
10) Footwear Bazaar
11) Home Décor
12) Home line
13) Toys Dept
14) Kids department

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15) Electronic Bazaar

16) Luggage
Level 2
Food Bazaar
1) Beverages
2) Confectionaries
3) Fruits & Vegetables
4) Staples
5) Process Dept
Non-food Dept
6) Home care
7) Personal care
8) Plastics, Utensils, Crockery (PUC)
SECURITY MEASURES
Pantaloon Apparel, food, etc. POS: Home-grown solution
SAP Retail
BI and Data warehouse: Congo’s (process of evaluation)
handheld scanners at Food Bazaar
VPN: Company-wide network linking all the branchesThey have loss prevention cell (LPC) that
will be looking after the safety measures in the organizations. There are 5 members in each store.
They have 3 types of tags
Hard tag Soft tag String tag
These tags will be attached to the materials. If any person will take that without paying bill some
process will be taken by the LPC.
Process: In case any theft is done in big bazaar they will catch the person & they will fine him and
they will fill one form that he had done the mistake & they will take all 10 fingers thumb
impression.
Departmental Managers
There are 24 departments in this store like Electronic dept, Depot dept, NBD dept, Mobile Bazaar
Dept, Star sitar Dept, PUC Dept, Ladies Dept, Men’s Dept, Furniture Dept, Footwear Dept, and

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Home Décor Dept. Each department will be assigned with targets, which have to be achieved
within the assigned period that may be of Daily, Weekly, monthly and yearly.Each department has
a department Manager & Assist DM. Their job is concerned mainly with sales. They look after
customer’s orders delivery post sale service if any etc. All Dept managers ADM, Team members
work under coordination & cooperation.They are also responsible for the placing orders of the
goods incase of shortage here they have to send indent specifying the amount of products needed at
the store. They have to report periodically the performance of the department to the store manager.
Administration
Store administration comes under Store Manager its functions are store maintenance, House
Keeping, Security etc. Store manager has to control all the activities within the store. He has to
communicate all the departmental managers and assistance departmental managers regarding any
new offers, regarding their targets etc. Sore manager has to see the operation at the store is being
performed in coordination and cooperation he has to communicate with the corporate office
regarding any changes being applied at the store.
Information Technology
This department is responsible for the maintenance of the systems of the stores. All billing
machines their functioning networking with the master machine etc. If there is any problem with
the machine then this department comes into function.
Cashing Dept
This department is responsible for the collection of sales amount i.e. cash sales, Credit sales, etc
under this department all billing machines of the stores comes. The sales amount collected
throughout the day by the cashier’s has to be submitted to this department.
Marketing
This dept is responsible for the marketing of the store in different media like Television,
Newspaper, and Holdings etc. the authorized person has to visit different companies and has to
look after for tie-ups etc. The executives arranges rally’s
Visual Merchandise
This department is responsible for the product arrangement at the store with respect to their nature.
The basic function of this dept is it divides the store into several departments based on the nature
of the product and within the department it decides how the products should be arranged by
keeping in mind the customer should not suffer.

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Human Resource
Human Resource basically works for the welfare of the employees. It acts to organize the
manpower and work to increase productivity of the employees. Basically Human Resource
performs the functions of Recruitment, Hiring, Induction, Training and development, Performance
appraisal of the employees. Human Resource studies and involves in inter life cycle of the
employee from his joining the organization to till his end from the organization.
CSD (Customer Service Desk)
This is the separate unit, which is mainly focuses on customer service like if the customer find
difficulty in finding any product, Customer complaints any replacement, Customer assistance
etc.
Supply chain management:
Company’s supply chain was split into the broad categories of fashion, food and general
merchandise, leading to a more focused approach to businesses, improved service levels, better
customization of logistic and supply chain related needs, and finally deliverables. Further, with
new concepts and lines of business being included during the year, as well as strategic alliances
with other companies, the process of gradually integrating them have either been completed or
close to completion.
The existing supply chain design consists of a Master Distribution Centre (MDC) and city
warehouses upgraded to Regional Distribution Centers (RDCs) and additional Distribution Centers
(DCs). The company had one MDC and 16 RDCs and DCs
The company has also appointed leading international and domestic players in the warehouse
infrastructure and technology front.
The company also introduced the concept of reverse logistics that looks at setting up a process to
transfer finished goods from the consumption point to the point of origin.
This reduces wastage and can lead to significant cost savings. On the technology front, all the
existing MDCs, RDCs and DCs are live on SAP, thereby facilitating standardization, real time
data management and reporting, as well as optimum operational efficiencies.
CONCEPTUAL FRAMEWORK
SALES PROMOTION:

BRAND OF BIG BAZAAR
It a key ingredient in marketing campaigns, consists of a collection of incentive
tools, mostly short term, designed to stimulate quicker or greater purchase of particular products
or services by customer. Whereas advertising offers reason to buy, sales promotion offers an
incentive to buy. Major consumer promotion tools are
1. Samples: offer of a free amount of a product or service delivered door to door, sent in the
mail, picked up in a store, attached to another product, or featured in an advertising offer.
2. Coupons: certificate entitling the bearer to a stated saving on the purchase of a specified
product, mailed, enclosed in other products or attached to them or inserted in a magazine
and newspapers ads.
3. Cash refund offers(rebate): provide a price reduction after purchase rather than at the
retail shop. Consumer sends a specified “proof of purchase” to the manufacture who
refunds part of the purchase price by mail.
4. Price packs(cents-off deals): offers to consumers of savings off the regular price of a
product, flagged on the label or package. A reduced-price pack is a single package sold at
a reduced price (such as two for the price of one). A banded pack is two related products
banded together (such as a toothbrush and toothpaste).
5. Premiums(gifts): Merchandise offered at a relatively low cost or free as an incentive to
purchase a particular product. A with-pack premium accompanies the product inside or
on the package. A free in the mail premium is mailed to consumers who send in a proof
of purchase, such as a box top or upc code. A self liquidating premium is sold below its
normal retail price to consumers who request it.
6. Frequency programs: Programs providing rewards related to the consumer’s frequency
and intensity in purchasing the company’s products or services.
7. Prizes (contests, sweepstakes, games): Prizes are offers of the chance to win cash, trips,
or merchandise as a result of purchasing something. A contest calls for consumers to
submit an entry to be examined by a panel of judges who will select the best entries. A
sweepstakes asks consumers to submit their names in a drawing. A game presents
consumers with something every time they buy – bingo numbers, missing letters—which
might help them win a prize.
8. Patronage Awards: Values in cash or in other forms that are proportional to patronage of
a certain vendor or group vendors.

BRAND OF BIG BAZAAR
9. Free Trails: Inviting prospective purchasers to try the product without cost in the hope
that they will buy.
10. Product Warranties: Explicit or implicit promises by sellers that the product will perform
as specified or that the seller will fix it or refund the customer’s money during a specified
period.
11. Tie-in-Promotions: Two or more brands or companies team up on coupons, refunds, and
contests to increase pulling power.
12. Cross-Promotions: Using one brand to advertise another noncompeting brand.
13. Point-of-Purchase (P-O-P) Displays and Demonstrations: POP displays and
demonstrations take place at the point of purchase or sale.
Objectives:
Sales promotion tools vary in their specific objectives. A free sample stimulates consumer
trial, incentive type promotions are used to attract new tries, to reward loyal customers, and to
increase the repurchase rates of occasional users. Sales promotions often attract brand switchers,
who are primarily looking for low price, good value, or premiums. If some of them would not
have otherwise tried the brand, promotion can yield long term increases in market share.
Sales promotions in market of high brand similarity can produce a high sales response in
the short run but little permanent gain in brand preference over the longer term. In market of high
brand dissimilarity, they may be able to alter market shares permanently. In addition to brand
switching, consumers may engage in stockpiling- purchasing earlier than usual (purchase
acceleration) or purchasing extra quantities.
A number of sales promotion benefits flow to manufacturers and consumers.
Manufacturers can adjust to short term variations in supply and demand and test how high a list
price they can charge, because they can always discount it. Promotions induce consumers to try
new products and lead to more varied retail formats, such as everyday low pricing and
promotional pricing. For retailers, promotions may increases sales of complementary categories
for example cake mix promotions may drive frosting sales and also induces store switching
means more customer are attracted to the stores. Sales promotion usually causes sales to increase
than a normal.
Impact of sales promotion

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Usage of sales promotion activities has a direct impact on behavior as it motivates a consumer to
buy now rather than in future, enhances value of an offer temporarily till the promotion period,
encourages switching, reinforce or reward loyalty etc. Broadly, objectives set for these activities
are; i)to generate store traffic, ii) to move excess inventory, iii)to enhance store image and iv)to
create a price image( high or low). Traffic building is achieved by special event promotions like
Diwali, Rakshabandhan promotions; inventory reduction through end of season sale; creation
and building store image through feature advertising and displays and joint promotions and price
image by highlighting the discounts. It helps consumer reduce not only financial risk but also
psychological and social risk by making consumer confident of his/her purchase, conformation
to group norms by shopping at famous stores/brands and possibility of acquiring well known
branded apparel during promotions. Promotions may induce non buyers to walk in to the store
and loyalty programmes may encourage to buy more, more often or upgrade to better quality.
Exciting promotions also have tendency to generate positive word of mouth and help consumer
feel a smart shopper. Thus not only utilitarian benefits like, saving of money, time or quality
upgradation but hedonic benefits like feeling confident, feeling of excitement and entertainment
etc.
Managerial challenges
It is evident that use of sales promotions is quite widespread and variety of activities are used
to address variety of objectives; clear off old stock, load the consumer, encourage brand
switching, to reward the loyal user, to create excitement at point of purchase etc. In a crowded
promotional environment it is challenging to retain loyal consumers. Too frequent use of
promotions may evoke indifferent attitude among consumers or shape deal to deal buying.
Predictability of promotions (promotions linked to festivals like Diwali) may result in coinciding
purchase with such promotions leading to loss of margin an opportunity loss to sell at full price.
A manager needs to be aware of these problems and have to plan strategies to overcome them.
Loyalty card programmes require good administrative support and good database records and
data mining abilities to exploit to the fullest. Also IT investments are required to keep records
and evaluate the impact. Big players like Pantaloon have a policy to invest in IT. They have
implemented SAP so database is available. Such investments in decision support systems may

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give competitive edge to retailers. For that one would need trained people to handle decision
support systems.
Manager needs to strike a delicate balance between percentage split across proactive and reactive
promotions. If it gives a first mover advantage then manager needs to allocate higher proportion
of budget to proactive promotions. Mangers also need to plan such activities which will
synergies company’s positioning and advertising campaign efforts rather than erode brand image
or equity. He needs to understand critical role of integrated marketing communications which
will signal unified message and image about the brand/ store. To what extent promotional
calendars need to be unified across markets for the chain and to what extent local managers need
to be given freedom to plan their promotions in local areas is a constant struggle between head
quarter and regional chain stores.
Execution of these activities also require proper coordination of selling effort, availability of
promoted merchandise and managing product line pricing. At times, if certain item in a product
line is promoted, it may disturb the logic of line pricing.
Do these customers remain loyal because of inertia? Or is there an impact from promotions that
do target loyal customers' additions of services or enlistment in new programs or extended time
periods? Can promotions act to positively affect brand loyalty?
This requires a consensus view of loyalty, which may be difficult to achieve. Many measures and
concepts have been used to evaluate loyalty in academic and practitioner studies. These have
included (a) the percentage of consumers buying a brand, (b) the number of purchases per buyer,
(c) the percentage who continue to buy the brand (repeat buyers), (d) the percentage who are 100
percent loyal, and (e) the percentage who also buy other specific brands (duplicate buyers). It
may be that a better descriptor of behavior in the marketplace is "polygamous loyalty" in which
customers are "loyal" to a set of brands. Examples include having a set of preferred restaurants or
hotels, membership in multiple reward programs within the same product class, and even having
service with multiple providers although one could satisfy multiple needs (for example, land-line
telephone, wireless phone, broadband Internet, and television programming can come from one
or separate providers to one household). A brand-loyal user of a product would likely respond
differently to a sales promotion than a customer who typically purchases a competing brand.
This changes the strategy of sales promotion. One goal may be directed to brand switchers, those
not yet strongly loyal to one given brand. These customers may be newer to the product category

BRAND OF BIG BAZAAR
and not yet have the experience on which to base loyalty. They may switch as a response to
market efforts by various brands or as a way to collect information from experience. Indeed,
within most product categories it is rare to find consumers who exclusively purchase one brand,
and thus a brand loyal consumer may be considered one who (usually) purchases a given brand.
A potential additional goal of sales promotion is to create an impact on brand equity and thus
loyalty to the brand. One study, described below, evaluated whether sales promotions consisting
of bonus merchandise with each order would reinvigorate purchases by "lapsed" customers.
Sales promotion and Brand loyalty

In the long term, brand loyalty is perceived to be the key to sustainable competitive advantage.
Brand loyalty can be defined as the consumer's desire to buy the same brand on a regular basis,
just as people are more likely now than ever to change jobs, homes, brand choice is also in
question. New products, more media communicating choices, wider variety of distribution
channels, and greater choice in financing lead to difficulty in maintaining loyalty. Shari Caldron
attributes this decline in brand loyalty to rising consumer price sensitivity, a decrease in
advertising effectiveness, and an increase in new brands. As a result of these changes, marketers
have become interested in the potential effect of price promotions on brand trial, repurchase
intentions, and long-term brand loyalty.

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CHAPTER III
ANALYSIS AND INTERPRETATION

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ANALYSIS & INTERPRETATION

1) Classification based on Age of Respondents:
Grouping the respondents will help in understanding common behavior of each group. It is a well
known fact that behavior of an individual is changes based on his age and many other factors.
Normally an individual from first group i.e below 20 years of age, have a tendency to follow
either of their parents and while buying a products like biscuits, snacks and juice the decision of
this age group member is most of the times is final. This group is taste oriented and usually do
not considers the price or promotional factor in their buying decisions. As an individual grows
older and joins second group i.e 21-30 years of age, more than 80% of this population will be
earning lively hood therefore they understand importance of price and promotion. Here the
individual starts making the choice among the set of brands and he sticks to this choice for a long
time. The third group which majorly includes the a individual with a family where he has to
make a decision for his young ones, these individuals become health conscious and these do not
give much importance to sales promotion. The fourth group which includes individuals who have
crossed the age of 40 has well defined brand choice which is very hard to change. Here the
individual will have tried many brands and came to conclusion that a particular brand is best to
him, sales promotion has very little effect on him.

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2. Classification based on the occupation of the Respondents:
An individual is influenced greatly by his surrounding, environment where spend most of the
time. In the case students they spend more time in schools and collages where they interact with
mates and eventually adopt certain character which will also be reflected in their buying
behavior. The end results is they buy the product which they are aware of or which their mates
discuss when they meet. In this group the impact of word of mouth is very high and in 80-90% of
case the decision is predetermined. In case of house wives time spent will be more with the
family and these are price and health conscious minds they are influenced by the promotions and
their friends suggestions (word of mouth). Working professional group is found spending major
time in work place and are exposed to huge information, these are product oriented buyers, if
they are satisfied with the product properties they can become a loyal customer. In case of
business persons their major time is spent in work place and they understand to good extent the
sales promotion and are influenced by promotion.

BRAND OF BIG BAZAAR
3. Classification based on the monthly income Respondents:
As it is said that BIG BAZAAR is the value for money format where customer is promised of
giving the product within their budget. Now grouping the respondents based on the monthly
income will provide a clear reason for why customers visit the value for money format hyper
market. An individual belonging to the first group are price oriented usually look for sales
promotion. Due to present situation saving money out of salary is given higher importance and
they look for offers most of the time, in order to save money they are ready to compromise on
brand. Individual of second group are more or less behave in same manner as group one. Group
three is taste and brand oriented in nature. Group four include mainly persons having their own
business, working professional and house wives they look for the premium brand and perceived
quality.

BRAND OF BIG BAZAAR
4. Top Three Factors that customer consider while buying:
Customer tastes and preferences keep changing from time to time and are very difficult to
identify the exact set of attributes that they see in a product while buying the attributes do not
exists singly but with one or more other attribute. Highest number respondents voted for taste
mainly because the research is on consuming product now one conclude that a product with
accepted taste should move faster than non accepted ones but in actual the first consideration
alone will not cause for buying a product. Second highest voted attributes are brand name and
quality; here both are perceived values which a company builds through its various ad campaigns
or promotional campaigns the effectiveness of such campaigns can be measured from the
response i.e product movements in the market. As the people of Hubli-Dharwad are price
sensitive they definitely look for low price or offers. It becomes indeed very challenging to
create a premium quality premium brand perception. Using sales promotion tools will create
such image but extreme huge care has to be taken.

BRAND OF BIG BAZAAR
5a. Customer preferences in biscuits:
From the above it is clear that most people prefer Parle over other yet sales they will buy other
brands also. As I have said early customers are price sensitive they tend to prefer Parle over other
because of its very low price. There are another set of customer who buy good day, will try tasty
treat at least ones. Now from this graph it can be said preference pattern of most of the people is
first is Parle G, second Good Day, third sunfeast, at the last Tasty Treat. Here customer who do
not prefer Tasty Treat includes loyal customer of Parle, Good day, non users of Tasty Treat,
aware of Tasty Treat.

BRAND OF BIG BAZAAR
5b. Customer preference in snacks:
Customer prefer Lays, Kurkure, Bingo over Tasty Treat even when it is run on offers, customer
prefer not to buy Tasty treat snacks this reaction may have come due to many factors, such as
previous experience i.e some may have tasted it may not have liked it, buying a snacks of Rs5
customer do not give much involvement in making a decision. Low involvement of customer
may cause in ignoring the promotion.

BRAND OF BIG BAZAAR
5c. Customer preference in Mango juice:
Here it can be seen that slice and maaza is close competent due to which fruity is pushed to third
choice and many people do not prefer Tasty Treat.

BRAND OF BIG BAZAAR
6. Reason for this particular pattern:
Since in all the three category most of customer did not prefer Tasty Treat but prefer other
brands this is mainly because of taste that customers consider very much important while buying
biscuits, snacks or mango juice.

BRAND OF BIG BAZAAR
7. Awareness about the Tasty Treat:
Awareness about the brand Tasty Treat is only 52% among the respondent. A health awareness
percentage is 70% among , here this 52% respondents include non users, other brand loyal, brand
switcher, first time buyers. The remaining respondent consists of first time visitor to store, a
person who have already decided pattern of purchase.

BRAND OF BIG BAZAAR
8. Buyers:
This graph shows that percentage of buyers is less than non buyer. But those who buy they
purchase greater quantity which satisfies the sales management target. 48% of this included the
persons who are not aware such brands and remaining non buyer are ones who have tasted and
did not like certain attribute.

BRAND OF BIG BAZAAR
9. Awareness regarding the offers:
One question arises here is when a customer is unaware of offers how will he considers that
brand while making a purchase decision?, now as said early decision does not have much
involvement of a customer and duration of decision is very low. So communicating become very
much essential in such a situations otherwise the effect will be seen in sales. Here the awareness
regarding the promotion of Tasty Treat is very low.

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10. Willingness to buy:
Since awareness regarding the offers is very low out of the aware persons few are ready to buy or
are regular buyer of Tasty Treat. Unwillingness must be converted to willingness.

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11. Customer who are willing to buy without offers also:
As the perception in customer regarding the Tasty Treat is “a product with offers”, so most of the
customer tend to buy Tasty Treat only when the offer is given on them i.e they want to be
rewarded all the time. In the process of buying they tend to become loyal to Tasty Treat which
will definitely take more time and money.

BRAND OF BIG BAZAAR
12. Reason for such non buying:
Customer who agreed to buy without offers are denoted by value 0, these are conditional buyer
i.e when they get satisfied by the product they do not wait for offers they will buy it. The major
reason for non buying is unawareness about the brand, about the products.

BRAND OF BIG BAZAAR
13. Customer Satisfaction level regarding offers (sales promotion):
Since percentage of non buyers are more they tend not to comment on satisfaction about the
offers. But still the percentage of highly satisfied and satisfied is more which means that this
section is a sales generating population. Customer refused to respond to satisfaction regarding
offers is mainly because they are buyers of brand other than Tasty Treat.

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OBSERVED FACTS:
The interaction with the Customer, Department manager, Assistant department managers
and sales representatives has revealed the following amazing facts;
1. The medium of communication regarding the private brands or own brands is only the in-
store announcements. Which means the product awareness is very low, because a person
comes to know about a product only when he/she visits to big bazaar, no other means of
getting information of the product(s) and promotions. The company depends mainly on
word of mouth, but how much this is affective, how many pass the message of promotion
to their friend or relatives are researchable questions.
2. Usually sales promotion is found more on Wednesday, Saturday and Sunday. Because on
these days walk-ins will be more than usual in order to push more products into the hands
of customer this technique is applied. Sales promotion is often starts in the middle week
of the month i.e second or third week, this is mainly intended to bring more walk-ins to
the stores.
3. Point of purchase display- Each brand is given a specific shelf space where products of
that brand are displayed. They are arranged in specific manner i.e from top to bottom in
an increasing order of price, low price will be placed at the top and high price will be
place at the bottom. To the extreme left the market leader in that particular product is
placed followed by the private brand. Sales promotion is communicated through the
signage which is displayed exactly in front of promoted product.
4. The products are arranged based on first in first out, the stocks which have come first are
displayed in the front and new ones are pushed back. By such arrangement the customers
are expected to pick the front packets.
5. Since involvement of a customer in deciding to buy products like biscuits, snacks and
mango juice is very low, therefore sales representative is not allocated to this section.
Now influence of offers exists to certain percent on such decision, sales promotion
attracts the new buyers, brand switcher, trial buyers etc.
6. The company is innovative only by offering discount on MRP; it has gained a set of
customers who look for offers. But no other areas like creating the awareness,
communicating offer, promotional campaigns etc are addressed.

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7. Since margin from such product is not the major revenue generator for the company but
if handled with proper care can yield a healthy margin. Sales promotion is opportunity to
create, build and maintain the customer for life time which makes sure that sale happens
even when sales promotion is not given. At the same time the opportunity is lost by the
company to sell a product at mrp.
8. From the interaction with respondent it became very clear that when brands in a same
product category are promoted they do not change their preferences. For example
suppose brands in biscuit category like Parle-g, Sunfeast, Goodday and Tasty Treat are
promoted by discounting Rs 2 on MRP, than the buying pattern of customer is expected
to remain same. Which means that each brand should be promoted in an unique way.

BRAND OF BIG BAZAAR
CHAPTER IV
FINDINGS
SUGGESTIONS

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FINDINGS:
1) The people belonging to the age group of below 20 and 20-30 constitute the major
customer for such products. Also this is time an individual makes choice of his own
influenced by many factors, at this age brand switching happens and this will create a
customer to the company for long period.
2) Majority of customers surveyed are looking for value for money. Their main focus is on
taste, price and perceived quality; here quality means the brand image in the customers
mind.
3) From the survey it is evident that offer is the major reason for respondent to buy Tasty
Treat, Price (low) is another factor which stimulates the respondent.
4) Offer influences the respondent during their purchase.
5) The survey reveals that while choosing brand from biscuits, snacks or mango juice
category, tasty treat is given last preference. This is mainly because of lack of awareness,
their previous experience about the brand, their perception about the brand.
6) The brand preference pattern remains same if the entire available brand on display is
promoted. Only the unique promotion is influential on customers.
7) Most of the customers are influenced by in store offers by Sign boards, offers announced
in the store stimulate the respondent to buy the particular product.
8) The main cause for selecting a brand from biscuits, snacks or mango juice category is
their previous experience i.e Taste
9) The percentage of awareness about the brand and sales promotion is 52% and 24%
respectively. But this 24% is not generating the sales to the company i.e only 16% are
willing to buy the product when sales promotion is running. From the company’s
profitability point of view this figure is low.

BRAND OF BIG BAZAAR
10) The sales quantity of own brand has increased in this year at the same time the
company has lost the margin for the sales. The company has generated sales by using
every day promotion technique i.e this own brand is sold on discounts throughout the
year which has resulted in increase in sales quantity.
11) 30% of customers are willing to buy the brand without promotion. This section of
customer also includes the people who will buy if they get the taste and good quality.
12) No means of communication regarding the Tasty Treat is done. Only visitor gets a
chance to know about the brand. The main reason for not preferring the Tasty Treat is
“unawareness factor”.
13) Most of the time sales promotions are not noticed by many customers, this can be
seen in case of loyal customer of other brand.
14) 42% of customers are satisfied with the present sales promotion. Remaining 52%
of customer did not notice the promotion mainly because of other brand loyal, perceived
value of the brand.
15) The survey reveals that customer are price sensitive, they look for offers for the
brand other than Tasty Treat most of the time.
SUGGESTIONS:
1. Since offers are influential should kept at intervals so that there is no clouding of offers in
the minds of customers, should not be a long term gap.
2. Unique and innovative (new) promotional: From the interaction with respondent it is
very clear that when brands in a same product category are promoted customers do not
change their preferences. For example suppose brands in biscuit category like Parle-g,
Sunfeast, Goodday and Tasty Treat are promoted by discounting Rs 2 on MRP, then the
buying pattern of customer is expected to remain same. Therefore an Unique and
innovative (new) promotional tool should be made best use.

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3. Brand awareness: Since the study reveals that the awareness of brand is very low, the
best way to create awareness about brand is in store publicity, which will create
awareness about brand and also about offers. So here advantage is in store
announcement are a bit of controlled form of marketing wherein the incoming traffic can
be diverted to this brand.
4. A campaign of TRIAL TESTERS, where the visiting customers are asked to try the
product and are asked for feed backs.
5. Brand building: By increasing expenditure on building brand awareness the gains a long
term customers rather than short term buyer by using sales promotions. The long term
loyalty will benefit the company in future i.e these loyal customers will make the brand
sustain in market.
6. Variety of tastes: From the survey it is found that taste is major cause for brand
selection; therefore three to four varieties of tastes should be launched.
7. Sales promotion no doubt increased the quantity of sales but it is an opportunity lost to
sell at MRP. This is push strategy where the company tries to push their product through
different promotional tools, too much promotion will create sort of doubt in the minds of
customers. So instead pull strategy where the customer comes searching for the brand.
8. Products in price range: As said in the findings, the respondents surveyed are price
sensitive and most of them are looking for low price. The products introduced in all price
ranges with innovations will benefit the company not only to gain profit but also it will
create a niche for the company, which by itself will generate the revenue.
9. Point of purchase display is critical issue and it must be handled with care. Innovative
techniques must be used to display brand and along with in store announcement will
increase the sales, even without promotional tools.
10. Projection on packet: The study shows that quality, taste and price is rated high in
factors that customers take into consideration while buying. Now the quality is the
perceived value of the brand and the value can be projected on a packet; packaging
should be such that it communicates the Taste, premium quality etc.

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BIBLIOGRAPHY
Web sites
http://business.mapsofindia.com/india-retail-industry
www.pantaloon.com
www.google.com
www.answers.com
Books
Company books
Annual report of the company
Text Books
o Marketing Management - Philip Kotler – 13TH Edition – Sales promotion – Page

number 501 to 503
RESEARCH AND PUBLICATION:

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• Sales Promotion Practices in Apparel Retail Sector and Challenges
Ahead – PREETA H VYAS – 02/011/2007.
ANNEXURE
QUESTIONNAIRE
• Personal Details.
Name (optional): _______________________
Age: ________
Occupation:
Student ( )
Business ( )
Housewife ( ) Self
employed ( )
Working professional ( ) Any
other______________
Income: Below 10,000 10,000-25,000 25,000-40,000

above 40,000
1). Please mention the top three factors that you see in a product.
a). ____________ b). ____________ c). ____________
2). Rank the following brands based on your preferences when offers are not running?
(scale 1to 4; 1for first preference 2 for second preference & so on)
BISCUIT SNACKS BEVERAGES

(MANGO JUICE)

BRAND OF BIG BAZAAR
Parle-G ( ) Lays ( ) Maaza ( )

Sunfeast ( ) Kurkure ( ) Slice ( )
Goodday ( ) Bingo ( ) Fruity ( )
Tasty Treat ( ) Tasty Treat ( ) Tasty Treat ( )
3). What is the cause for above choice?
a). Price b).Quality
c). Taste d)._____________(other please specify)
4). Are you aware of TASTY TREAT?
Yes No
5). Do you use/buy products of TASTY TREAT?
Yes No
6). Are you aware of offers of TASTY TREAT?
Yes No
7). Did you took the advantage of these offers?
Yes No
8). How many packets of TASTY TREAT BRAND did you buy with current offers?
__________
9). Which will be 2nd brand of your choice after TASTY TREAT?
BISCUIT SNACKS BEVERAGES

(MANGO JUICE)
Parle-G Lays Maaza
Sunfeast Kurkure Slice
Goodday Bingo Fruity
10).Would you like to buy TASTY TREAT brand without offers also?
Yes No (if YES, then do not answer question11)
11) Why are you not buying the TASTY TREAT?
a). Price is high b).Quality is not good

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c). Taste is not good d).Unaware of it
e)._____________(other please specify)
12). Please shows us your satisfaction about the offers of TASTY TREAT
1 2 3 4 5
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
13) Any valuable suggestion beneficiary
_________________________________________________________________________
_________________________________________________________________________

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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT

BRAND OF BIG BAZAAR

KOUSALI INSTITUTE OF MANAGEMEMENT STUDIES, DHARWAD Page 1

Major Outcomes of the Project:

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Need for study:

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Objectives of the study:

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Measurement and analysis technique

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Retail Trade – India, US and China

China 360 12 2.7 20

US 3800 12.6-16 15.3 80

Source: The Economist, 2006

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Source: E&Y, the Great Indian Retail Story, 2006

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TYPES OF RETAIL FORMATS

Retail Organization mainly falls into 4 major categories

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Pantaloon Own brand store Hypermarket

Ebony Department Store Quasi-mall, smaller outlets, adding food

Piramyd Department Store Quasi-mall, food retail

Subhiksha Supermarket Considering moving to self-service

Vitan Supermarket Suburban discount store

Foodworld Food supermarket Hyper market, Foodworld express

Globus Department Store Small fashion stores

Bombay Bazaar Aggregation of Kiranas

Efoodmart Aggregation of Kiranas

Metro Cash and Carry

S Kumar’s Discount Store

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2005 Liberty Shoes Future group Retail 51 3

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INVESTMENT POLICY AND INITIATIVES

FDI Policy in the Retail Sector:

Business models for entry in Indian markets

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Current entry options for foreign players

Franchise agreements • Most widely used entry route by multinational retailers

Strategic licensing • Foreign company enters into a licensing agreement with a

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10. PFH Entertainment Limited

SUBSIDIARIES AND ASSOCIATES

I. Home Solutions Retail (India) Limited

II. PFH Investment Advisory Company Limited

a). b). c).