Retail Industry Analysis

S. No. Chapter-1

Chapter -3 Chapter - 4

Contents Introduction Need for the Study Scope for the study Objectives of Study Methodology Limitations Theoretical Frame Work Introduction Company Profile Data Analysis & Interpretation

Chapter -5

Findings &Conclusions

Chapter -6

Suggestions

Appendix

Questionnaire

Appendix

Bibliography and References

Chapter -2

Page No.

1

Chapter-1 2

Introduction Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential

growth,

the

road

ahead

is

full

of

challenges.

What is retailing?

3

The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. Traditional Retail Scene in India India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions. 4

Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparel

SALES PROMOTION Sales Promotion is a challenging task in today's market scenario as many organizations are coming out with different promotions. It is important to focus benefits provided by the promotional offers.

5

MARKETING MIX PRODUCT

PRICE

PERSONAL SELLING

ADVERTISING

PROMOTION

SALES PROMOTION

PLACE

PUBLICITY

DIRECT MARKETING

Sales Promotion is a challenging task in today's market scenario as many organizations are coming out with different promotions. It is important to focus benefits provided by the promotional offers. Definitions



In 1930, Prof.NelH.Borden of Harvard B School used the term

Marketing Mix.



Proff. Jeron Mc Carth first popularized the idea of marketing

mix variables in terms of 4P’s.



“SP includes those sales activities that supplement both personal

selling and advertising and coordinating them and help to make them effective, such as displays, shows and expositons,demonstartion and other non-recurrent selling efforts not in ordinary routine”—AMA



“SP is an action-focused marketing event whose purpose is to

have a direct impact on the behavior of the firm’s customer” –Institute of SP ,U.K

6



“SP generally aim to change purchase behaviour,they vary in

whether they attempt to persuade consumer to buy a product for the first time, to buy more or to buy more often”—Philip Kotler. •

Sales promotion is one of the four aspects of promotional mix

(The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Need for Study: Sales Promotion is a challenging task in today’s market scenario as many organizations are coming out with different promotions. The factors considered are based on certain demographic variables such as income, age, occupation etc. It is important to focus benefits provided by the promotional offers.This study can effect organization Performance and enable the customers to deal with various promotional offers.

Scope of study: The study focuses on sales promotional strategies which are observed in BIGBAZAR. The study is confined to sales promotional strategies in men’s apparel . Objectives Of the Project Work



To study the effectiveness of media on sales promotion in Big

Bazaar

7



To analyze the impact of Sales Promotion strategies of mens

apparel in Big Bazaar. 

To assess the consumer perception about Sales Promotional

scheme.

Methodology To achieve the said objectives a comprehensive study has been made on crucial areas of Customer satisfaction. A detailed Questionnaire has been developed and employed on the selected Research Methodology:

Survey Method

Research Instrument:

Questionnaire

Contact Method:

Personal Interview

DATA COLLECTIONS The data collection is of two types. They are: 1. Primary data 2. Secondary data Primary data:The Primary data collection is done through a structured questionnaire, which contains open and closed questionnaire.

8

Secondary data:Secondary sources are the other important sources through which the data were collected. Includes internet, websites, journals, articles, and the reports maintained by BIGBAZAR.

Sample size: By using convenient random sampling technique 100 customers are selected for the purpose of the study. Direct questionnaire is used to survey the customers



Sample size— 100



Data Collection

Primary data – Through Questioner Secondary Data—from the reports of Big Bazaar

Limitations

 Due to constraint of time only city of Hyderabad is selected and so it cannot claim to be a comprehensive study of population. 9

 The sample size is restricted to 100 respondents.

 The data is obtained through a structured questionnaire and it has its own limitations in its analysis and interpretation.

 Some respondents did not provide the requisite information pertaining to the questionnaire

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Chapter -2

TYPES OF SALES PROMOTION (In General)

Price deal: A temporary reduction in the price, such as happy hour

11

Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: Coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer.

Objectives of Sales Promotion

12

Sales promotion is a tool used to achieve most of the five major promotional objectives discussed in the Building Product Awareness Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. In this way sales promotion can act as an effective customer information gathering tool (i.e., sales lead generation), which can then be used as part of follow-up marketing efforts.

Creating Interest Marketers find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors. Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost.

Providing Information Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a

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promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email. Stimulating Demand Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (e.g., price reduction), can be employed to stimulate sales. Reinforcing the Brand Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). Many companies, including airlines and retail stores, reward good or “preferred” customers with special promotions, such as email “special deals” and surprise price reductions at the cash register.

Importance of Sales Promotion •

Communication strategies designed to act a direct inducement, an added

value, or incentive for the product to customer

14

•

Advertising and publicity may create the desire but its conversion into

sales can be achieved only by sales promotion through its short-term incentives.

•

Sales Promotion helps to shape the buying patterns, attract new

customers, or increase sales.

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CHAPTER – 3

Company Profile Big Bazaar, which has about 150 outlets across the country, is also promoting small retailers by partly having the shop-in-shop concept. The selected retailers put up their counters and sell through the outlet. The small retailers also lower their

prices

as

they

gain

through

bulk

sales.

Life at Big Bazaar is pretty self-sufficient. If you were trapped in there for a week, you could live a good life. But to appreciate the nuances of home

16

economics, one should try comparing prices. The clothes especially deserve an independent feature of their own.

Profile of 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 12 million square feet of retail space in 71 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. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The group’s specialty retail formats include, books and music chain, Depot, 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, futurebazaar.com Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. Other group companies include, Future General, the group’s insurance venture in partnership with Italy’s General Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centers, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands 17

like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. The group’s flagship company, Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’

Group Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

Group Mission We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition.

Parent Company 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 12 million square feet of retail space, has over 1000 stores across 71 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, blends the look, touch

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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 .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. Big Bazaar: With 105 stores across country, big bazaar operates very large retail space and provides employment to 8% people in organized retail in India. It provides a unique experience of shopping under one roof with lines of business in Fashion Food Books and Music Home and Electronics General Merchandise Leisure and Entertainment Wellness and Beauty Telecom and IT Big Bazaar is not just another hypermarket. It caters to every need of a family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, one can get the best products at the best prices – that is what they guarantee and they speak in their punch line “ISSE SE SASTA AUR ACHHA KAHI NAHI”

Services Particularly designed for the regular middle-class family that requires clothing that lasts and doesn't burn holes into the pockets of existing clothing, this store offers good bargains. What you won't get here is designs your friends will drool

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over. Checks and stripes are like the far-end of the creative exercise here, and the best bet for the fashion conscious would be the plain colors on display. The rest of the stuff is not really very interesting as the prices are just a shade below the MRP. Groceries, home appliances, plastic goods, luggage, stationery, cosmetics... you name it, this place has it. A chain of shopping malls in India A chain of shopping malls in India currently with 31 outlet owned by currently with 31 outlet owned by Kishore Biyani’s Pantaloon Group. Kishore Biyani’s Pantaloon Group. Big bazaar is not just another Big bazaar is not just another hypermarket. Hypermarket provides the best products at the best Provides the best products at the best price. Reflect the look and feel of Indian Reflect the look and feel of Indian bazaars at their modern outlets .bazaars at their modern outlets. All over India, Big Bazaar attracts a few All over India; Big Bazaar attracts a few thousand customers on any regular day. Big Bazaar is not just another hypermarket. It caters to every need of a family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, one can get the best products at the best prices – that is what they guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise .

CHAPTER-4 20

Data Analysis & Interpretation Data is collected from two sources one is through questionnaire and other is through sales report of Big Bazaar. The questionnaire is basically designed to gather the information according to the objective framed .It is mainly focused on three issues or headings

21

1)

Geographic Segmentation.

2)

Demographic Segmentation

3)

Communication Mix.

1. Geographic Segmentation

Nort

East

West

South

h 33%

21%

18%

28%

22

Data Interpretation The communication which was done around the Abids area varied From the above table region wise customer’s foot fall can be interpreted and know which part the foot fall is more into the store This is put to know which area is much communicated and which part is needed to communicate. . As per the survey it can be interpreted that 33% footfall of customers are from north 18% of customers from west 21% of customers from east 28% from south

28%

21%

33%

North

West

East

South

18%

2. Demographic Segmentation AGE

23

S.n

Age

Respondent

Percentage

o 1

16-

s 12

12%

2

25 26-

24

24%

3

35 36-

26

26%

4

45 46-

22

22%

5

55 > 55

16

16%

Data Interpretation From the above table it can be interpreted that 12% of customers falls in the age group 16-25. 24% of customers fall in the age

group 26-35. 26% of customers fall in the age group 36-45. 22% of customers fall in the age group 46-55. 16% of customers falls in the age group >55.

The age groups laid

before the respondent have been the result of observation and interview. By analyzing the responses to this question, we can identify the demographics of the population that visit Big Bazaar. The highest number of respondents falls in the age group 26-35 . It can be Analysed that most of the consumers who visit retail outlets regularly are the youth. They make up almost half of the population who shop at Big Bazaar.

12%

16%

24% 16-25

26-35

36-45

22%

26%

46-55

>55

24

Gender 1) Gender: MALE Female 62 38

Data Interpretation From the given data it has been interpreted that most of the respondents were male with 62%and the number of female respondents were 38% which was less compared to the male respondents. Since more men can be inferred to visit retail store than women, companies can target their offerings and marketing strategies in two areas. Retail outlets can appeal to the men customers by offering more products geared especially towards men.

38%

Male

62%

Female

25

Customers frequency of visiting the store How frequently you visit the store

Daily Weekly Monthly Occasionally @ time of SP TOTAL

Male 0 1 2 19 40 62

Female 0 1 2 6 29 38

Data Interpretation From the given data it has been interpreted that 31% of the men & 19% of women customers visit the store during the time of sales promotion. 2% of Men &1% of women visit the store weekly 12% of Men &5% of women visit the store monthly, 21% of Men &12% of women visit the store occasionally more often than women

26

Graphical Form 0% 3% 18%

47%

Daily

Weekly

32%

Monthly

Ocassionally

@ time of SP

27

Type of MEDIA Through which of the following media you have been communicated with the Sales Promotion Offers

S.No 1 2 3 4

Type of Media Print Media Television Broadcast WOM

Responded 46 28 14 12

Percentage 46% 28% 14% 12%

TOTAL

100

100%

Data Interpretation From the above table 46% of the customers have been communicated by the print media i.e., through newspaper and 28% is the role of television stands next in the ranking in communicating to the customers.14% through broadcast,12% through WOM .Thus from the given data it can be Analyzed that print media is the most effective communication channel from all the available options. By analyzing the responses to this question, one can identify the effectiveness of communication through the media identified.

28

Graphical Form

12%

14% 46%

Print Media

TV

Broadcast

WOM

28%

29

Most preferred print media

9) Which print media you have been communicated with? S.n o 1 2 3 4

Language Respondent Telugu Hindi Urdu English

s 48 7 4 41

Percentage 48% 7% 4% 41%

Data Interpretation This questions put to the customers to know what is the most preferred print media that customers get aware of the offers and other promotional activities. This question made an attempt to know which print media can be effective form in order to make customer aware of the sales promotion offers. Collected data gives information that most of the customers who have visited the store has gone through Telugu NEWS daily and then comes the English news daily.

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41%

telugu

Hindi

Urdu

English

48%

4%

7%

Which of the following TV channel you have seen about BB SP activities

S.No 1 2 3 4

TV channel English Hindi Telugu Urdu

Responded 0 33 84 3

%ge 0% 33% 84% 3%

Data Interpretation Most the customers recived the communication from the telugu channel.It can be so because most the population here are telugu speaking people and they prefer to watch the Telugu language T.V chanel rather than other .

31

Graphical Form

3%

0%

28%

69%

telugu

Hindi

Urdu

English

32

Consumer Perception

11) If I say SP in BB which of the following strikes to your mind first

S.NO 1 2 3 5

Types of SP Offers Discounts Coupons Free Gifts

Percentage of respondents 72 21 4 3

Data Interpretation From the given dat it can be said that most the consumers perceive the salesPromotion is all of offers .72% responded that they mean salespromotion is all of offers than any other schemes.This is because of series if sales promotion that has been practiced by Bigbazaar

.

33

Graphical form

4% 3%

21%

Offers

Discounts

Coupons

Free gifts

72%

12) Would you believe in QUALITY of product seen maintained @ SP Yes – 83% No- 17%

Data interpretation

The above data says that consumer perceive that quality is maintained even at the time of salespromotioon activites.Most of the customers shoed positive response to the posed question. This clears says that customer willnot doubt on quality of the product during the Sales promotion activity

34

Graphical form

17% Yes No

83%

35

Effectiveness of Sales Promotion 6) Do you visit BB only @ SP

No. of Respondents Percentage% YES 40 No 29

58% 42%

Data Interpretation Tabular form shows that sales promotion can be very much effective to increase the foot falls into the store.58% showed positive response to the question that they say that they do visit store during the sales promotion. This shows the effectivesness of sales promotion.

Graphical form

42%

Yes 58%

No

36

Would you like to change your brand @ SP Yes – 89% No-11%

Data Interpretation: Most of the responded have given positive response to the question this makes to interpret that the customers is rady to try and accept the new brand that is shown in the sales promotion activity,

Graphical Form

11% Yes No

89%

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Conclusion & Findings

38

CONCLUSION •

The highest number of respondents falls in the age group 20-30.

It can be deduced that most of the consumers who visit retail outlets regularly are the youth. The rest of the population who visit the retail outlets under study can be listed in the following descending order of distribution. •

The highest number of respondents were male, as is depicted by

the graph and chart presented .The number of male respondents was more compared to the female respondents.

2.Quality: Providing quality at low prices and having different types of products for different income customers is another advantage.

3.

Price: As noted the prices and offers in Big Bazaar have been one of the

main attractions and reasons for its popularity. The price ranges and the products offered are very satisfying to the customers at the time of Sales Promotion activity.

4. Location: The location of Big Bazaar has been mainly in the heart of the city or in the out skirts giving a chance to both the City and the people living outside the city to shop. 5. Advertisements: Big bazaar has endorsed very popular figure like M S Dhoni (@Fashion) and other famous personalities which has attracted a lot of customers. This has resulted in increase of sale and the outdoor advertising techniques have also helped Big Bazaar.

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6. Middle class appeal: Considering the fact that there are a lot middle class families in India, Big bazaar has had a huge impact on the middle Class section of India, the prices, quality and sales strategy has helped in getting the middle income groups getting attracted towards Big Bazaar. 7. Attractive sales: Big bazaar has been known for its great sale and great offers. Big bazaar has had long lines of people waiting to get into the store for the sale. Therefore, Big Bazaar had increased sales in a huge way due to the sales promotion.

FINDINGS

40

Sugestions

•

As per the study the customer communication in labeling the offer and

details are to be focused more.

•

Study also states that the time taken at the billing systems counters

should be more in number, and convenient according to the customer.

•

It is found in the study that sales person training sessions are to be

increased for effective communication.

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Questionnaire

NAME: AGE: LOCALITY:

1) How frequently you visit the store a) Daily

b) Weekly

c) Monthly

d) Occasionally

e) @ SP 42

2) Through which media you have been communicated about the sales promotion offers in BB? a) Print Media

b) T.V

c) BoradCast

d) WOM

3) Which of the following NEWS daily you prefer the most. a) Telugu

b) Hindi

c) Urdu

d) English

4) Include question on Price? 5) Is Big Bazaar Feasible to Middle Class? 4) Which of the following TV channel have you been communicated by the BB store.] a) English

b) Telugu

c) Urdu

d) English

5) If I say SP@BB which of the following strikes your mind first? a) Offers

b) Discounts c) Coupons

d) Free Gifts

6) Would you believe in QUALITY of product seen maintained @ SP a) Yes

b) No

7) Do you visit BB only when SP schemes are offered? a) Yes

b) No

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8) Would you like to change from your regular BRAND for the sake of SP? a) Yes

b) No

9) Are you satisfied with SP strategies of Big Bazaar? a) Yes

b) No

Bibliography and References Company Web Sites Journal Marketing Management by Philip Kotler Wikipedia NEWS DAILY

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