Training Report_big Bazaar Ludhiana

FOOTWEAR DESIGN & DEVELOPMENT INSTITUTE, NOIDA. Project Report on ATL & BTL activation and its effect on the Operational Parameters.

A Summer Internship Proposal for BIG BAZAAR Under the Mentorship of Mr. Arvind Sharma (CLUSTER MARKETING HEAD).

Post Graduate Diploma in Retail Management From FDDI (Ministry of Commerce, Govt. of India).

Presented by: Divyankur Gautam In partial fulfillment for the award of the degree of PGDRM.

ACKNOWLEDGEMENT I owe a deep sense of gratitude to my mentor, Mr. Arvind Sharma whose valuable guidance, innovative approach, work ethics and immense energy made this experience so enriching. I found a great teacher in him and with his co-operation, I was able to complete this project and more importantly could learn so much. I also express my heartiest gratitude to every single employee of BIG BAZAAR for their generous hospitality extended to me which helped lighten the load completing this report. I would take this opportunity to thank my parents and my brother who always supported me.

CONTENTS

1. Global Retail Market 2. Retail Scenario in India 3. Company Profile 4. Marketing in Retail 5. Marketing analysis of Big Bazaar. 6. Store Re-launch 6.1 In Store Communication. 6.2 Activities – Customer Connect 6.3 Details of ATL & BTL activities 6.4 Study 6.5 Some More BTL activities – Events 6.5.1 Drawing & Painting Competition 6.5.2 Summer Kids‘ Fest 6.6 Press Cover 7. Conclusion

1. GLOBAL RETAIL INDUSTRY

Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services .The impact can be best seen in countries like U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector. Retail is the second-largest industry in the United States both in number of establishments and number of employees. It is also one of the largest worldwide. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart is the world‘s largest retailer. Already the world‘s largest employer with over 1 million associates, Wal-Mart displaced oil giant Exxon Mobil as the world‘s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business. WORLD’S TOP RETAILERS Rank Retailer Home Country 1 Wal-Mart Stores, Inc. U.S.A. 2 Carrefour Group France 3 The Kroger Co. U.S.A. 4 The Home Depot, Inc. U.S.A. 5 Metro Germany

(Source:STORESIDeloitteToucheTomahatsu)

2. RETAIL SCENARIO IN INDIA As the corporates — the Piramals, the Tatas, the Rahejas, ITC, S.Kumar‘s, RPG Enterprises, and mega retailers- Crosswords, Shopper‘s Stop, and Pantaloons race to revolutionize the retailing sector, retail as an industry in India is coming alive. Retail sales in India amounted to about Rs.7400 billion in 2002, expanded at an average annual rate of 7% during 19992002. With the upturn in economic growth during 2003, retail sales are also expected to expand at a higher pace of nearly 10%. Across the country, retail sales in real terms are predicted to rise more rapidly than consumer expenditure during 2003-08. The forecast growth in real retail sales during 2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure. Modernization of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hyper marts. Sales from these large-format stores are to expand at growth rates ranging from 24% to 49% per year during 2003-2008, according to a latest report by Euro monitor International, a leading provider of global consumer-market intelligence. A. T. Kearney Inc. places India 6th on a global retail development index. The country has the highest per capita outlets in the world - 5.5 outlets per 1000 population. Around 7% of the population in India is engaged in retailing, as compared to 20% in the USA. In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food-related items. Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71% of retail sales in 2002. The share of food related items had, however, declined over the review period, down from

73% in 1999. This is not unexpected, because with income growth, Indians, like consumers elsewhere, have started spending more on non-food items compared with food products.

THE FACTORS RESPONSIBLE FOR THE DEVELOPMENT OF THE RETAIL SECTOR IN INDIA CAN BE BROADLY SUMMARIZED AS FOLLOWS: •Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 50% of the Indian population as low income In1994- 95; this is expected to decline to 17.8% by 2006-07. • Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogg‘s, Unilever, Nestle, etc. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. • Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. • The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. About 47% of India‘s population is under the age of 20; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. As India continues to get strongly integrated with the world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come.

A McKinsey report on India says organized retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%).

3. COMPANY PROFILE

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 Generali, the group‘s insurance venture in partnership with Italy‘s Generali Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and busines 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 centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Group‘s joint venture partners include, US based stationery products retailers, Staples and Middle East-based Axiom Communications. ABOUT BIG BAZAAR

HYPERMARKET CHAIN OF ABOUT BIG BAZAAR HYPERMARKET CHAIN OF DEVELOPMENT STORES IN INDIA

OUTLETS

107

PARENT GROUP

FUTURE GROUP

OWNER

KISHORE BIYANI

FOUNDED IN

2001

HEAD QUARTER

JOGESHWARI MUMBAI

WEBSITE

WWW.BIG BAZAAR.COM

TAG LINE

IS SAE SASTA AUR ACHA KAHIN NAI

MANIFESTO

―Future‖ – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners. Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. Rewrite Rules. Retain Values.

4. MARKETING @ RETAIL INDUSTRY

Today's retail marketing managers must: Understand the connections between the lifestyle and expenditure characteristics of customers, their propensity to purchase one product or brand over another, and leverage this understanding for competitive advantage. Improve direct marketing response by ensuring they are targeting the right households at the right time, using the right media with the right message. Leverage current consumer data to make better strategic decisions about products, marketing and locations. Increase customer loyalty and retention with a scientific, data driven approach to analytical CRM. Applying advanced analytics to current demographic, expenditure and lifestyle data produces the most accurate customer segments and profiles. With a clear picture of your different customer segments, you are in a position to develop merchandise and offers that meet the needs of existing customers and answer (or anticipate) the needs of targeted prospects. In today's CRM landscape the old analogy comparing the rifle and shotgun approaches to message and / or offer delivery is perhaps more appropriate than ever, as more retail organizations struggle to achieve one-to-one marketing-communications with customers and prospects. Targeting allows a retail enterprise to channel its marketing budget where there is the greatest (and fastest) possibility of Return On Investment (ROI).

Retail marketing managers can implement the following projects to understand their customer, market and store locations better; achieving a very strong ROI for their retail marketing efforts in the process……………………………………….. Customer and Market Potential Estimates • Estimate the revenue potential of your customers to determine their current , potential and lifetime value • Estimate your market potential for more effective acquisition initiatives • Quantify and qualify your market opportunities Customer and Market Profiles • Develop more effective communication strategies through a better understanding of who your customers are • Learn more about your customers (their age, income, family structure, media usage, life-styles, and more) and use this information in your branding, advertising and direct marketing strategies • Identify your market potential through a better understanding of your targets Customer and Market Segmentation • Develop more effective communication strategies through a better understanding of different customer groups and your market segments • Customize your product offers by different customer and market segments • Identify your target segments and optimize your marketing spend Product and Service Potential • Identify products/services that best suit your customers‘ needs and market your offerings more effectively

• Be relevant and improve your up-sell and cross-sell initiatives • Manage your products and services through a better understanding of market needs

Trade Area Analysis • Use the information on the store performance and the socio-demographic characteristics of the trading area to estimate market potential by individual stores • Use trade area characteristics to customize your product offerings, store displays, store size, etc. to be more relevant to your customers and to better penetrate your market • Evaluate performance of your stores based on their trade area characteristics Store Network Optimization • Determine the optimum number of stores to support market needs • Customize and optimize your stores to attract more customers

5. MARKETING @ Big Bazaar – an analysis

APPARELS

denim, tshirts, fabric,formals,casuals,party wear, ethnic, undergarments, night wear, sarees, dress materials .

FOOD

staples, ready to eat, ready to cook, international food, tea & coffee.

FARM PRODUCT

fruits, vegetables, imported fruits, dairy products

CHILL STATION

soft drinks, packaged juices, milk items, frozen food, ice creams.

ELECTRONICS

tv, washing machine, refrigerator, personal care, microwave ,laptop, computers ,kitchen appliances

MOBILE BAZAAR

mobile handsets, mobile accessories, recharge

GM FASHION

footwear, auto accessories, luggage, bijli ghar

GM HOME

home linen, utensils, plastic products, home décor

FURNITURE BAZAAR

living room, bed room ,kitchen, bean bags

HOME DEPOT

all stationary items

JEWELLERY

gold &diamond jewellery.

Psychological Pricing

Value Pricing

Time Pricing

Bundling

No. of Outlets – 104 Located at main cities – Tier I & Tier II Cities. Area – 10.000 sq. ft to 12,000 sq. ft Approachable Destination

Strictly follows Store Operating procedures (SOP) which are well framed covering all the minute details of running a retail store. Every single employee is expected to follow the minutest details laid down in SOP.

6. STORE RELAUNCH My project highlights the ATL & BTL activities done during the ―Store Relaunch‖ and their impact on operational parameters. Ludhiana Re-launch 1 June – 10th Aug, 2009 st

(First 4 Weeks Analysis) Prologue •

Date of store opening: 25 th Oct, 2009

•

Store Area: – Build up – 40116 sqft – Retail – 20,000 sqft

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Location of the store: The Gold Souk Mall, GT Road West

Action Plan for revival of the store: Reaching out to a new segment of customers – India-2 The New TG - Demographics Areas

Chaura Bazaar, Purani sabzi Mandi, Shivpuri, New Shivpuri, Badwa Nagar, Sunder Nagar, Balmiki Chowk, Madhavpuri, Singar Cinema Road, Hargovind Ngar, CMC, Brown Road, Field Ganj, Railway Station Road, Salim tabri, Aman nagar.

Population

2.5 Lac

Primary

Punjabi semi skilled workers, small shop owner, knitting factory

occupation

workers, daily wedge labor, small factory owner( Sundar Nagar)

Income level

5k to 15k pm

Reaching out to a new segment of customers – India-2… Offers to the customers: – Shop for Rs 199/- or above & get ½ kg Sugar Free – Dus ka Dam – Shop for Rs 199/- and get 2 kulfis and mehendi in 1 hand - FREE

6.1 In Store Communication

Help Desk

Dus ka Dam Zone

6.2 Activities – Customer Connect Free of cost facial to all the ladies irrespective of buy on random days. Free mehendi to those who shop for atleast Rs. 199. A drawing and painting competition. A large scale Kids Summer Fest

6.3 Details of ATL & BTL activities Shop for Rs 199/- or above & get ½ kg Sugar Free The customer has to bring the sugar coupon – distributed along the leaflet (10 per leaflet) to avail off this offer Communication Tool: A-4 Folder with sugar Coupons and FPP offers. (ATL Marketing activities)

Distributed door to door in the areas shortlisted & given with the purchase of 199 or more.

Dus ka Dam Shop for Rs 999/ or above and get 10 predefined items at unbelievable prices:

SKU Parle G Glucose Biscuit 703 g Maggi noodles 720 g Coke 2L Rooh Afza Bikano Bhujia 1Kg Colagate CDC 300g Tide 3.8 Kg Fortune Oil 1L PP Rajm aChitra Fresh n Pure Desi Ghee 1L Total

MRP 40 78 55 90 153 82 242 90 55 200 1085

CP 34 69 48 74 98 77 223 58 42 171 895

Offer Price 29 59 39 69 89 69 199 49 39 149 790

Communication tool: A4 Leaflet, Newspaper ads, Cable Scroll.(ATL Marketing activities)

A4 Leaflet

Shop for Rs 199/- and get 2 kulfis and mehendi in 1 hand - FREE ! The idea is that any customer who comes to Big Bazaar and shops for even as low as Rs 199/shall be offered something Mehendi stays on your hand for at least a week – this will reinforce the brand recall every time the customer sees her hand. Offering Kulfi symbolizes the Indian tradition of ‗Muhn Meetha karana‘ (offering something sweet to the guests)

6.4 Study These were the BTL promotions in terms of offers. During this time I conducted a study about the perception of customers about these offers. This was done on advice of my mentor, Mr. Arvind Sharma. The sample size taken is 400. Following are some results of that study. 1. Offers already known to customers before coming to the store. This was done to check the effectiveness of the ATL activities.

. 2. The offer which was most liked by the customers.

3. How did the customers come to know about these offers.

4. The contribution of effective channels of communication.

During the entire month an average of 90 percent of the incoming traffic of the store tried these offers which and were satisfied. After the first month of the 70 days promotion the target of 1.20 Cr of that month was achieved and hopes to continue with the same vigor. The promotion is mainly targeting the India-2 customers who reside within the 2 Km radius of Jalandhar Bypass. ½ Kg sugar, 2 kulfis and mehendi are very attractive for the India-2 customers as it involves just Rs. 199/- purchase. As a result both footfall and sales have increased substantially. On the other hand Easy Day Market‘s sales haven‘t grown over last two months (which is the main competitor of Big Bazaar in Ludhiana). This showed that these BTL & ATL promotions proved to be a success in the first half of its operational time.

6.5 Some more BTL activities – Events There were two major events done in the store, i.e. A drawing & painting contest and a mega summer kids fest in which there was a participation of about 1200 people. 6.5.1 Drawing and painting competition About 40 kids participated in this 2 nd event of summer kids‘ fest. Kids were provided with drawing sheets and colors. They were given 1 hour to showcase their talent. There were three age groups and best three paintings were chosen in every age group and were given prizes. The event was a success in terms of connecting the customers to the store as many of the same participants registered again for the mega summer kids‘ fest.

Kids in action…

Parents and viewers

Judges at work Prize distribution

6.5.2 Summer Kids Fest

This was a mega event about 1200 people participated including 400 children. The marathon event lasted for 8 hours. The venue for the event was the atrium of the Gold Souk Mall. Mr Arvind Sharma (Cluster Marketing Head), Mr. Pawan (DM), Ms Amandeep (HR Manager) were in the conceptualizing team. The event was a huge success; there were more than a couple of competitions, i.e. dancing, fancy dress, drawing competition. On the spot games made it more interesting, besides it there was a huge inflatable castle for kids to have fun. The chief guest was Mr Sanjeev Kalra (IPS), IG Punjab police. The event got ample press cover and a very positive feedback was received. Following are some glimpses of the sparkling event.

Dance Competition

Atrium of the Mall

On the Spot Games

Fancy Dress Competition

Free Sampling of many items helped the participants to maintain their energy levels.

Our Sponsors For Free Sampling •

Tropicana

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Real Fruit Juice

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Top Ramen

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Ching‘s Noodles

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Coca Cola - MMPO

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Act-II Popcorn

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GSK - Horlicks & Boost

45 feet long & 20 feet high inflatable castle was another highlight of the event.

Mr Sanjeev Kalra (IPS), IG Punjab police was the chief guest of the event.

The Cake cutting Ceremony.

6.6 Press Coverage

7. Conclusion EFFECT ON OPERATIONAL PARAMETERS All the activities that were carried out by me during my training at Big Bazaar Ludhiana showed a positive impact on all the 5 operational parameters i.e. sales, footfalls, basket size, ticket size and conversion ratio. The data is not presented in the report due to confidentiality of the data.