Big Bazaar Research Project.docx

A PROJECT REPORT ON “STUDY ON CUSTOMER PERCEPTION ABOUT BIG BAZAAR”

SUBMITTED BY SHARAD H YADAV SPECIALIZATION MARKETING ROLL NO: 171249

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTERS OF MANAGEMENT STUDIES BATCH 2017 – 2019 UNDER THE GUIDENCE OF PROF. SHALINDRA PAWASKAR

PILLAI INSTITUE OF MANAGEMENT STUDIES AND RESEARCH NEW PANVEL, NAVI MUMBAI – 410206

Executive Summary The Retail business in India is at its peak and growing at a very high speed. With the proliferation of the idea that shopping is just not a routine but an experience, the retail industry has something to work on. For starters, providing the customers with a wide variety of products thus widening his choice and providing top-notch service. Among other requirements I came to the conclusion that customers need an environment conducive to shopping. Big bazaar is a chain of shopping malls in India. Currently, there are 210 big bazaar stores across 80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.

INTRODUCTION The word retail derived from the French word “retailler”, meaning to cut the bulk. In other word, it implies a firsthand transaction with the customer. Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at price that are competitive and affordable. Retailing is the transaction between the seller and consumer for personal consumption .It does not include transaction between the manufacturer, corporate purchase, government purchase and other wholesale purchase. A retailer stocks the goods from the manufacturer and then sells the same to the end user for a marginal profit. In the supply chain that also consists of manufacturing and distribution, retailing is the last link before the product reaches the consumer. Different forms of retailing  Hyper marts 

Large supermarkets, typically (3,500 - 5,000 sq. ft)

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Mini supermarkets, typically (1,000 - 2,000 sq. ft)

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Convenience store, typically (7,50 - 1,000 sq. ft)

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Discount/shopping list grocer

Traditional retailers trying to reinvent by introducing self-service formats as well as value-added services such as credit, free home delivery etc. The Indian retail sector can be broadly classified into –  food retailers 

health and beauty products

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clothing and footwear

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home furnishing and household goods

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durable good

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leisure and personal goods

The retail industry is a phenomenon that has taken India by storm. It has revolutionalized the way we shop. Today the total retail industry is worth Rs. 7,00,000 – 8,00,000 Crores.

However the organized sector is currently worth Rs.13, 300crores and is expected to grow at a mind Blowing rate of 28% per annum over next 5 years. This industry saw the light of the day in 1980‟s when India first begin opening up its economy. Textiles, which included company like Bombay Dyeing, Raymond‟s, S Kumar‟s & Grasim was the first sector to see the emergence of retail chains. Titan makers of premium watches successfully created a retailing concept in hitherto uncharted territory on India establishing its series of elegant showrooms. The later half of the 1990‟s saw a fresh wave of entrance in the retail business. Creating Brand Equity and adding value to the product through innovative services has become the key issue in the industry.

Some Amazing Facts 

Retail is currently the biggest industry in the world with Sales of $7.2 trillion.

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Every 10th billionaire in the world is a retailer.

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25 of the top 50 Fortune 500 companies are in retail.

RETAIL INDUSTRY IN INDIA India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly 5 million sell food and related products. Thought the market has been dominated by unorganized players, the entry of domestic and international organised players is set to change the scenario. Organized retail segment has been growing at a blistering pace, exceeding all previous estimates. According to a study by Deloitte Haskins and Sells, organised retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. The fastest growing segments have been the wholesale cash and carry stores (150 per cent) followed by supermarkets (100 per cent) and hypermarkets (75-80 per cent). Further, it estimates the organised segment to account for 25 per cent of the total sales by 2011. India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favourable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behaviour and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centres, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. India retail industry is progressing

well and for this to continue retailers as well as the Indian government will have to make a combined effort. It is expected that India may have 600 new retail outlets till 2010. Since, retail revolutions took place in the more developed markets much earlier, the feeling is that India can draw form their experiences. Although, given India‟s own unique characteristics, expectations are that as the retail scenario, which ahs evolved rapidly over the period of 4-5 yrs. The country has emerged with its own Retail Model as well. Yet consultant say that there are enough models out there in the developed part of the world that will find acceptance here, even though they may find some modifications to suit local need better.

RETAIL SPACE AND STORE DESIGN Driven by changing lifestyles, strong income growth and favourable demographic patterns, Indian retail is expanding at a rapid pace. Mall space, from a meagre one million square feet in 2002, is expected to touch 40 million square feet by end-2007 and an estimated 60 million square feet by end-2008, says Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia. Alongside, Indian cities are witnessing a paradigm shift from traditional forms of retailing into a modern organized sector. A report by Images Retail estimates the number of operational malls to more than double to over 412 with 205 million square feet by 2010 and further 715 malls by 2015, on the back of major retail developments even in tier II and tier III cities in India. Store Design is used to create appropriate store image & includes: 

Store Front

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Interior Design

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Lighting

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Sounds

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Smells

The importance of Design & Layout of the stores is increasing in today‟s epoch. With the severe competition amongst the giant retailers & storeowners, the way of attracting the customers is by giving the artistic look to the interiors & exteriors of the stores. So design & Layout of the retail stores has become an important element in marketing. From marketing perspective we can consider the following points: What is the difference in your store -- Today with increasing Buzz word of retail outlets & Malls one has specify as to what difference does his store makes in comparison with the others Retailers or Mall owners. How your retail store is different to the others. Everyone is competing for the customers' dollar. There are more choices out there for consumers than ever before. With all these choices, what will grab the consumer's attention? You've invested the money to get that expensive, high traffic location, but how will you keep the customers from walking right by your door? How will you encourage them to return? What is unique about your store? After investing money on the important priorities such as merchandise, great location, part-time staff, insurance, accountant, advertising, your carefully budgeted money can be lost if your store doesn't measure up to the customers' expectations.

Posters covering the door and windows, hand lettered signs, lack of lighting and untidy displays send the message that your business isn't serious. If your store looks like a bargain basement, customers will expect bargain basement prices and may draw the conclusion that your product is poor quality. This judgment may have little to do with the product itself, but be the result of poor presentation. When you examine your merchandising, you examine what the customers' experience, from their first sight of your storefront, until they leave store - hopefully with a purchase in hand. Merchandising is also about understanding the way customers shop. By using this knowledge, you can position your merchandise to increase sales. You need to create an environment that attracts the customer, is comfortable to shop, and encourages the customer to return. 

Are the storefront and windows attractive & inviting?

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Is all signage clear, professional and legible?

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Is the store interior welcoming and comfortable?

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Is merchandise presentation appealing?

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Are seasonal and high-margin merchandise placed in high profile locations?

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Overall, is the store appearance professional?

Of course, if you are on a shoestring budget, you need to start small, but make sure you include a plan for growth. One of the exciting things about retail is that it is dynamic. If you don't grow and change, customers assume you have nothing new to offer them. You don't have to overhaul the entire store, but rotate merchandise, change displays, and change signage to make the customer feel that there is always something new for them to see or experience.

KEY PLAYERS IN INDIAN RETAIL SECTOR Indian apparel retailers are increasing their brand presence overseas, particularly in developed markets. While most have identified a gap in countries in West Asia and Africa, some majors are also looking at the US and Europe. Arvind Brands, Madura Garments, Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well. Another denim wear brand, Spykar, which is now moving towards becoming a casualwear lifestyle brand, has launched its store in Melbourne recently. It plans to open three stores in London by 2008-end. The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra Group is the fourth large Indian business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both. 

Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, and Viveks Safe Deposit Lockers

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PGC Retail -T-Mart India, Switcher , Respect India , Grand India Bazaar ,etc.,

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REI AGRO LTD Retail-Formats: 6TEN Hyper & 6TEN Super

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RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super, Daily & Fresh

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Pantaloons Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.

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The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma.

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K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit

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Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores.

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Pyramid Retail-Formats: Pyramid Megastore, TruMart

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Nilgiri‟s-Formats: Nilgiris supermarket chain

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Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain

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Vishal Retail Group-Formats: Vishal Mega Mart

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Reliance Retail-Formats: Reliance Fresh

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Reliance ADAG Retail-Format: Reliance World

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German Metro Cash & Carry

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Shoprite Holdings-Formats: Shoprite Hyper

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Paritala stores bazar: honey shine stores

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Aditya Birla Group - more Outlets

CHALLENGES FACING THE INDIAN ORGANISED RETAILER The challenges facing the Indian organized retail sector are various and these are stopping the Indian retail industry from reaching its full potential. The behavior pattern of the Indian consumer have undergone a major change. This have happened for the Indian consumer is earning more now, western influences, women working force is increasing, desire for luxury items and better quality. He now wants to eat, shop, and get entertained under the same roof. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer. The biggest challenge facing the Indian organized retail sector is the lack of retail space. With real estate prices escalating due to increase in demand from the Indian organized retail sector, it is posing a challenge to its growth. With Indian retailers having to shell out more for retail space it is effecting there overall profitability in retail.

Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian retailers have difficultly in finding trained person and also have to pay more in order to retain them. This again brings down the Indian retailers profit levels.

The Indian government have allowed 51% foreign direct investment (FDI) in the India retail sector to one brand shops only. This have made the entry of global retail giants to organized retail sector in India difficult. This is a challenge being faced by the Indian organized retail sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading. Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result discounting is becoming an accepted practice. This too bring down the profit of the Indian retailers. All these are posing as challenges facing the Indian organized retail sector.

The challenges facing the Indian organized retail sector are there but it will have to be dealt with and only then this sector can prosper.

COMPANY INTRODUCTION Future Group is an Indian conglomerate headquartered in Mumbai, Maharashtra, India. The company is known for having a significant prominence in Indian retail and fashion sectors, with popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like Brand Factory, Central etc. The group also has a notable presence in integrated foods and FMCG manufacturing sectors. Future Retail Limited and Future Lifestyle Fashions Limited, two operating companies of Future Group, are among the top retail companies listed in BSE with respect to assets, and in NSE with respect to market capitalization. On

May

2012,

Future

chain Pantaloons to Aditya

Group

announced

Birla Group in

a

50.1%

order to

stake

reduce its

sale debt

of of

its

fashion

around ₹80

billion (US$1.1 billion).To do so, Pantaloons fashion segment was demerged from Pantaloons Retail India Ltd; the latter was then merged into another subsidiary—Future Value Retail Ltd— and rechristened Future Retail Ltd. Future Group is a corporate group and nearly all of its businesses are managed through its various operating companies based on the target sectors. For e.g., retail supermarket/hypermarket chains Big Bazaar, FBB, Food Bazaar, Food Hall, Hometown etc. are operated by its retail division, Future Retail Limited,[9] while its fashion and clothing outlets Brand Factory, Central, and Planet Sports are operated via another of its subsidiaries, Future Lifestyle Fashions Limited.[10] With these many fashion outlets and supermarkets, the group also promotes its fashion and sports brands like Indigo Nation, Spalding, Lombard, Bare etc., and FMCGs like Tasty Treat, Fresh & Pure, Clean Mate, Ektaa, Premium Harvest, Sach etc. It also has operating companies to cater specifically to internal financial matters and consulting within its group of companies.[11] On November 21, 2014, Future Consumer Enterprises Limited. acquired the 98% from Actis Capital and other promoters. With that, Nilgiris is a fully owned subsidiary of Future Consumer Enterprises Limited (FCEL).

BIG BAZAAR

Big bazaar is a chain of shopping malls in India. Currently, there are 210 big bazaar stores across 80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Big Bazaar has clearly emerged as the favorite shopping destination for millions of its consumers, across the country, its success is a true testament to the emotional bonding it has established with the Indian consumer, on account of its value offerings, aspirational appeal and service levels. Shop till you drop! Big Bazaar has democratized shopping in India and is so much more than a hypermarket. Here, you will find over 170,000 products under one roof that cater to every need of a family, making Big Bazaar India’s favorite shopping destination. At Big Bazaar, you will get the best products at the best prices from apparel to general merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods, car accessories, books and music, computer accessories and many, many more. Big Bazaar is the destination where you get products available at prices lower than the MRP, setting a new level of standard in price, convenience and quality. If you are a fashion conscious buyer who wants great clothes at great prices, Big Bazaar is the place to be. Leveraging on the company’s inherent strength of fashion, Big Bazaar has created a strong value-for-money proposition for its customers. This highlights the uniqueness of Big Bazaar as compared to traditional hypermarkets, which principally revolve around food, groceries and general merchandise.

Strategy:- 3-C Theory According to Kishore Biyani's 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country. [4] Big Bazaar has divided India into three segments: India one: Consuming class which includes upper middle and lower middle class (14% of India's population). India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washermen, etc. (55% of India's population). India three: Struggling class (remaining 31% of India's population). While Big Bazaar is targeted at the population across India one and India two segments, Aadhaar Wholesale is aimed at reaching the population in India three segment. With this, Future Group emerged as a retail destination for consumers across all classes in the Indian society.

Innovations:Wednesday Bazaar Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse Sasta Din”. It was mainly to draw customers to the stores on Wednesdays, when least number of customers are observed. According to the chain, the aim of the concept is "to give home makers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day". Sabse Sasta Din With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly belonged to Big Bazaar. This was launched on January 26, 2006 and the result was exceptional that police had to come in to control the mammoth crowd. The concept was such a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan).

Maha Bachat Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer. The Great Exchange Offer On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can redeem these coupons for brand new goods across the nation.

Research Details Research Objective:A Study on Customer Perception of Big Bazaar  To find out buying behavior of the customer coming in the Big Bazaar  To find out customer response towards Big Bazaar  To study the satisfaction level of customer in different attributes of Big Bazaar  To study the preference of customers between big bazaar and normal kirana store on various parameters. Research Methodology  Quantitative research was carried out in the form of questionnaire. Questionnaire was distributed to customers who are regular at Big bazaar by use of internet. Target group were all who visit big bazaar at least once or twice in a month. Sampling Design and Sample Size  Sample was designed by collecting basic factors which were important from shopper’s perspective and expert guidance from faculty. Sample size of 54 was distributed to varied demographic customer base. Scope and Limitations  Research is restricted to Mumbai city only and is not the representative of other cities in India.  Limitation of time restricted the sample size and face to face interaction with respondent

1) How frequently do you visit Big Bazaar?

2) What is the purpose behind visiting Big Bazaar?

3) What type of product do you mostly purchase in Big Bazaar?

4) What encourages you to visit Big Bazaar?

5) Which days of week do you prefer to visit Big Bazaar?

6) Do you go with planned list of product to be purchased in Big Bazaar?

7) Store design and layout of Big Bazaar?

8) Services of sales personnel in Big Bazaar?

9) Convenience of car parking in Big Bazaar?

10) Shopping Experience in Big Bazaar?

11) Loyalty Programs in Big Bazaar?

12) Do you satisfied with the billing system of Big Bazaar ?

13) Do you think that the service of discount offered by Big Bazaar attracts you for impulse buying?

14) Which promotional services do you expect from Big Bazaar?

15) What is your mode of payment in Big Bazaar?