AN INTERNSHIP REPORT Submitted to the Annamalai University in partial fulfillment of the requirements for the degree MASTER OF BUSINESS ADMINISTRATION Submitted By SUMANTO SHARAN (AB – 9040) Under the Guidance of Mr. Sivadas Nambiar ,MBA. Ramaiah Institute of Management Studies. New BEL Road, MSRIT Post,MS Ramaiah Nagar Bangalore, Karnataka 560054 2009 2010 ACKNOWLEDGEMENT I would like to express my deep sense of gratitude to our esteemed Director Mr. R Pattabhiram., for providing me with a great opportunity To undertake this Internship. I express my sincere thanks to Dean Dr. Rajaram and my guide for his kind encouragement, guidance and valuable instruction throughout the project. I express my sincere thanks to my Guide, Mr. Sivadas Nambiar Professor of Ramaih Institute Of Management Studies whose guidance and support rendered throughout this internship helped me in successful completion of the Internship. I would like to extend my heartfelt thanks to all my family members and friends for their support and encouragement, without which the internship would not have taken the present shape. I express my thanks to Mr. Santosh HR of Big Bazaar, Hebbal and employee of Big Bazaar for their kind co‐operation without which the internship would not have been completed. I also thanks those who have helped me directly or indirectly to complete this Internship. ‐Thank You‐ EXECUTIVE SUMMARY 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, 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. 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 focussed on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US‐based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. As a part of my MBA curriculum I have done my internship training at Pantaloon Retail (India) Ltd –Big Bazaar , Hebbal Bangalore, India. In this report I am going to share my experience in that company for the period of 90 days from October to December. During my internship my project Title was “Systematic Organization Study”. Need for the Study This Study is taken up to fulfill the requirement of M.B.A degree course of Annamalai University. The training is undertaken during October 2009 to December 2009 and the main purpose of the training is to know the application of the theoretical aspects in our course in the corporate environment and gain firsthand experience and expose ourselves to corporate policies, ethics, culture, practices, procedures, facts about the work culture and policies of the Organization. Objectives of the Study 1) To understand the organization structure or hierarchy of the company. 2) To understand the working of the various departments. 3) To enable us to gain an insight into the corporate world. 4) To understand the various responsibilities and duties carried out by each department. 5) The Study is aimed at understanding how an organization practically works in the real situation. Scope of the Study This report is based on the study conducted at Big Bazaar - Hebbal, Bangalore. It aims at understanding the company’s establishment, organization structure, departments, techniques, marketing strategies and the advantages it is having over the competitors. An attempt is made to analyze the company’s performance in comparison to the theoretical aspects. it aims to understand the skills of the company in the areas like technological advancements, competition and in management. Methodology adopted for the Study • Observing the working of various departments like finance, CSD , human resource, Logistics etc. • Discussion with the company executives, managers and employees. • Visiting and surfing websites of the company. Sources of Data i) Primary data ii) Secondary data (a) Primary Data The data collected for the first time through observation and interview method. The data is collected by observing the working of various departments and also by interviewing the managers of all the departments. It is also obtained by the help of staff members. (b) Secondary Data The data is collected by secondary sources also. The data is collected through company manual, product brochure, company website and annual report. INDUSTRY PROFILE INTRODUCTION Retail means selling goods and services in small quantities directly to customers. Retailing consists of all activities involved in marketing of goods and services directly to consumer for their personnel family and household use. The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney's eighth annual Global Retail Development Index (GRDI), in 2009. The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010. With rising consumer demand and greater disposable income, the US$ 400 billion Indian retail sector is clocking an annual growth rate of 30 per cent. It is projected to grow to US$ 700 billion by 2010, according to a report by global consultancy Northbridge Capital. The organised business is expected to be 20 per cent of the total market by then. In 2008, the share of organised retail was 7.5 per cent or US$ 300 million of the total retail market. A McKinsey report, 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year. Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil, marketing, power, two‐wheelers and telecom companies are leading the sales and profit growth of India Inc in the fourth quarter of 2008‐09. India continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI) inflows as on September 2009, in single‐brand retail trading, stood at approximately US$ 47.43 million, according to the Department of Industrial Policy and Promotion (DIPP). India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also, organised retail, which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$ 107 billion by 2013. The organised retail sector, which currently accounts for around 5 per cent of the Indian retail market, is all set to witness maximum number of large format malls and branded retail stores in South India, followed by North, West and the East in the next two years. Tier II cities like Noida, Amritsar, Kochi and Gurgaon, are emerging as the favoured destinations for the retail sector with their huge growth potential. Further, this sector is expected to invest around US$ 503.2 million in retail technology service solutions in the current financial year. This could go further up to US$ 1.26 billion in the next four to five years, at a CAGR of 40 per cent. India has emerged the third most attractive market destination for apparel retailers, according to a study by global management consulting firm AT Kearney. The Northbridge Capital report states that apparel is the "largest organised retail category", accounting for 39 per cent of the organised market. It is growing at the rate of 12 to 15 per cent annually. Organised apparel retail is projected to touch US$ 200 million by 2010 from the current worth of US$ 120 million, the report noted. Experts agree that apparel, along with food and grocery, is leading the growth of organised retailing in India. The results of the past quarter support these findings. Buoyed by improved consumer spending, sales of listed retailers increased by 12 per cent in the September 2009 quarter compared with the same period in 2008. This is higher than the 8.2 per cent posted in the June 2009 quarter. While the previous quarter saw value retailers such as Koutons Retail and Pantaloon leading sales recovery, this time around, sales of lifestyle and premium retailers led the growth trend. Two out of every three retailers managed an increase of at least 10 per cent, compared to about one in three in the June 2009 quarter. RETAILER OF INDIA 1) K. Raheja Group Shopper’s stop Home Stop Mother care Hyper city Crossword Planet M 2) Tata Trent Westside Star India Bazaar Landmark 3) RPG Group Music world Spencer’s supermarket Spencer’s daily Spencer’s hypermarket 4) Reliance Group Reliance fresh Subhiksha 5) Bharti Group 6) Aditya Birla Group 7) Café Coffee Day 8) Pantaloon retail (India) Pvt. Ltd Pantaloons Big bazaar Food bazaar Fashion station All Blue sky E‐Zone Collection I Home Town Central Mall 9) Godrej Group Godrej Aadhar Nature’s Basket RETAIL IN INDIA The India Retail Industry is the largest among all the industries, accounting for over 13 per cent of the country’s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centers, multi‐storied malls and the huge complexes that offer shopping, entertainment and food all under one roof. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175‐200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating operations. TOP 10 RETAILERS IN INDIA 1. Pentaloon Retail (India) Ltd. 2. K. Raheja Group 3. Tata Group 4. R P G Group 5. Landmark Group 6. Piramal Group 7. Subhiksha 8. Bharti – Walmart 9. Reliance 10. A V Birla Group 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 startegy that captures almost the entire consumption basket of Indian customers. In the lifystyle 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 speciality retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, 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 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 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 retailer, Staples and Middle East‐based Axiom Communications. 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 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.’ FUTURE GROUP MANIFESTO “Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re‐learn, our ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio‐economic development for our customers, employees, shareholders, associates and partners. Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. 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. 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. 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 work. Adaptability: to be flexible and adaptable, to meet new challenges. Flow: to respect and understand the universal laws of nature. MAJOR MILESTONE 1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand 1991 Launch of BARE, the Indian jeans brand. 1992 Initial public offer (IPO) was made in the month of May. 1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation. 1995 1997 2001 2002 2004 2005 John Miller – Formal shirt brand launched. Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in Kolkata. Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad. Food Bazaar, the supermarket chain is launched. Central - India’s first seamless mall is launched in Bangalore. Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls. 2006 Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products. Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture chain, Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, Generali. Forms joint ventures with US office stationery retailer, Staples. 2007 Future Group crosses $1 billion turnover mark. Specialised companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Futurebazaar.com becomes India’s most popular shopping portal. 2008 Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark. Future Group acquires rural retail chain, Aadhar present in 65 rural locations. Type : Hypermarket Founded : 2001 Headquarters : Jogeshwari, Mumbai Industry : Retail Products : Department, Furniture, grocery & Fashion Stores. Promoter : Kishore Biyani Parent : Pantaloon Retail India Ltd. Punch line : “Is se sasta aur accha kahin nahi !” Currently 120 outlets BIG BAZAAR Big Bazaar is a chain of department stores in India currently with 120 outlets. It is owned by Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal‐Mart and has been successful in many Indian cities and small towns. The idea was pioneered by entrepreneur Mr. Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the fastest growing chain of department stores and aims at having 350 stores by 2010.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. Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices ‐ that’s what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience. VISION “To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the most profitable manner.” One of the core values at Future Group is, ‘India ness’ and its corporate credo is – “Rewrite rules, Retain values.” 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 STORE STUDY Big Bazaar No. 52/3, Batarayanapura CMC Maruti Arcade, Nagashetty Halli Hebbal, Bangalore - 560094 Phone No: 08066479100 This store is of 4 flour and divided into 5 levels based on the nature of products. There are 24 departments in this store and 120 Human Resource employed. As this store is big enough with 5 levels and 24 departments has long product range and product depth. Once 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 with their Products 1) Depot: General books Office stationary Children stationary Film VCD’s & DVD Major brands in this department For VCD’s & DVD’s Moser bear Anand Audio T‐ series Shankar Yash Raj Films Saryotham 2) NBD (New Business Development) This is the department, which is introduced because the space is available in the store after making arrangement for other department and this department consists of the products, which are not introduced and are not regular goods. Wrist Watches Fashion Jewelry Sunglasses Auto accessories Major Brands in this department For Wrist Watches Escort Lumax 3) Gold Bazaar Navaras Gold Jewelry This is the separate unit not related to Big Bazaar they share profits on percentage basis 4) Mobile Bazaar All kinds of Handsets ranging from Rs 1000 to 25000 of different companies Mobile accessories Coddles phones & land line phones Major Brands in this department Nokia Sony Ericson Motorola Samsung Beetal Pacetel 5) Star Sitara Cosmetics Fragrances Herbals Pharmaceuticals 6) Shringar Bangles Jewelry sets Bracelets Hair Accessories Bindies Chains 7) Plastics, Utensils, Crockery (PUC) a) Plastics Buckets Casseroles Containers Boxes Flasks Bowls Jug & Sippers Bottle & Mug Plastics chair Major brands in this department Milton Dream Line Cello Poly set Chetan b) Utensils Plates, Bowls, Glasses Non‐stick Cookware’s Kitchen tools Tiffin Boxes c) Crockery Crockery cutlery Table Materials / Napkins Casseroles Dinner sets Wine, Juice Glasses 8) LUGGAGE Travel bags Trolleys Bags: Schools, Collage Ladies purse Suitcase VIP American Tourist Aristocrat Safari Milestone LEVEL – 2 1) Ladies Department Sarees Jeans Dress materials Bretni Under garments DJ & C Night wears Ruff & Tuff Western wears Gelluse Major brands in this department Accessories Shila Johnson and Johnson Shristhi Paris beauty Kalakruthi VIP MSIL London Dreams 2) Men’s Department Formals (Shirts & Pants) Casuals (Shirts & pants) Party wears Jeans T‐Shirts Others Accessories (Lungi Dhoti etc) Fabrics (Cut pieces) Suits & Blazers Levi’s Signature garments Major brands in this department DJ & C London Dreams Matrix Levis knight hood Buffalo Shatranj Spunk AFL LEVEL – 3 1) Furniture’s Department Dining Table Bedroom Accessories Hall accessories (Sofa sets, Chairs, Computer table etc) Mattresses 2) Footwear Bazzar Sports Shoes Ladies Sandals Formal Shoes Ladies Casuals Casual Shoes Ladies Chapple Men’s Sandals Ladies fancy Sleepers Ladies Sports shoe Major brands in this department Reebok Nike Puma Loto Van hussain Hallen solly New balance 3) Home Decor Flower vase Photo Frames Artificial Flowers Birthday items Religious gifts Water falls (artificial) Candle stand Frame Paintings Umbrellas Assorted color Stones 4) Home line bed sheets, Pillows , bed spreads Towels, Yellow dust Razai , Carpets, Cushion covers Chair bags Major brands in this department Riviera Sameera Oriental Orchid Home collection Home expression Home style Sweet dreams 5) Toys Department Soft toys Educational toys Board games, Action figures Dolls Major brands in this department Fun school Venus Mitashi Creatives United Shadilal & Sons Flamingo 6) Kids department Boy’s section Girls Section T‐Shirts, Trousers, jeans Ethic wears Cotton shirts, Cargo, Cod raw Co‐ ordinates Ethic wears Cotton frocks Co ordinates Western wears Rain cotes Major brands in this department Tara Rum Pum collection Disney Pink And Blue Power ranges Promo 7) Infants Jhablas Bed items Vests Bibs feedings Baba suits Frocks LEVEL 4 FOOD BAZAAR 1) Beverages Soft drinks Mineral water Juices Health drinks 2) Confectionaries All kinds of Chocolates & Confectionaries 3) Fruits & Vegetables 4) staples Dal, Rice, Atta, Rava items Spicy items Oil’s, Masala items Dry fruits Ready meals Breakfast cereals 5) Process Dept Health drinks Instant Mixes Ready to eat Soups, Bread Items, Pickles Corn flaks, Chips Spreads Major brands in this department For Beverages For confectionaries Maaza Dairy Milk Slice Nestle Bisleri Parle Coca cola For Staples Pepsi Ashirwad Thumps up Pillsbury Appy Dhara Sunflower Non – Food Items 6) Home care Phenyl, Detergents Dish wash, Tissue papers, Scratch Shoe cases, Fresh wrap 7) Personal care Soaps, toothpaste, Shampoo Deodorants, Body spry Baby food, Talcum powder Men’s apparel Major brands in this department Lysole Nirma Pepsodent Lux International HUL Colgate Parachute LEVEL – 5 Electronics Bazaar Televisions Irons, Mixers & Grinder Sound System Refrigerators Washing machines Microwave Rice cookers Juicers Major brands in this department Koryo Philips Sony Samsung Videocon Onida LG Sanyo Panasonic Haier AWARDS AND RECOGNITION MOST ADMIRED RETAILER OF THE YEAR: HYPERMARKET ‐ BIG BAZAAR2009 INDIAN RETAIL FORUM AWARDS 2008 THE INDIASTAR AWARD 2008 RETAIL ASIA PACIFIC 500 TOP AWARDS 2008 COCA‐COLA GOLDEN SPOON AWARDS 2008 THE REID & TAYLOR AWARDS FOR RETAIL EXCELLENCE 2008 PLATINUM TRUSTED BRAND AWARD IMAGES RETAIL AWARD 2005,06 BOARD OF DIRECTORS Mr. Kishore Biyani ‐ Managing Director Mr. Gopikishan Biyani ‐ Wholetime Director Mr. Rakesh Biyani ‐ Wholetime Director Mr. Vijay Biyani ‐ Wholetime Director Mr. Vijay Kumar Chopra ‐ Independent Director Mr. Shailesh Haribhakti ‐ Independent Director Mr. S Doreswamy ‐ Independent Director Dr. D O Koshy ‐ Independent Director Ms. Bala Deshpande ‐ Independent Director Mr. Anil Harish ‐ Independent Director INDIA –LARGE CONSUMPTION COSMOS With over 28 states, 18 major languages, 8 major religions, 4000 different castes and communities celebrating 72 festivals, India is the most diverse country. I India is set to become a US$ 450 billion market by 2015 Current share of organized retail is estimated to be 4-5% i.e US$18-20 billion market. India’s working population to be 68% in FY2020 from 63% in Y2008 Self employed people form a majority of consumers in India (organized sector accounts for less than 10% of jobs) India is one of the youngest consumer markets in the world. Over 50% of the population is below the age of 25 years India is at the brink of a Creative Economy driven by speed and imagination It is expected to expand to 1418% by 2015 i.e US$ 75 billion Shopping basket of average Indian ranges from US$7-10 lower than international average is expected to increase ORGANIZATION STRUCTURE (Zonal) Mkt. Mgr HR Category Mgr Financ e Mgr Operatio n Head Vice President President Mkt. Head HR Head Categories Head Finance Head Store Mgr STORE STRUCTURE Dept Mgr Mkt. Mgr H R Mgr Ass. Store Mgr CSD Store Manager Visual Asst. Dept Mgr Cashier Info Administration Merchandising Team Leader Asst. D M Security Maintenance House Keeping 7 P’s of Big Bazaar 7 P Analysis Of Big Bazaar 7P Marketing Mix is more useful for services industries and knowledge intensive industries. Successful marketing depends on number of key issues. The seven keys issues are explained as: ‐ PRODUCT Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc. Products of all the major brands are available at Big Bazaar. Also, there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD‐players and 25,000 microwave‐ovens. In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these categories made up only about 60%. PRODUCT MIX OF BIG BAZAAR FASHION •Formal wear •Casual wear •Night wear •T‐shirt •Jeans •Sarees •Dress materials •Ethnic wears •Party wears FOOD •Ready to eat •Ready to cook •Spices •Staples •International foods •Tea & Cofee CHILL STATION •Soft drink •Packaged juice •Milk Items •Frozen foods Ice creams FASHION & JEWELLERY •Footwear Bazaar •Beauty Care •Navara •Star Parivar •Meena Bindre HOME & PERSONAL CARE ELECTRONICS BAZAAR •Shampoo •Detergent •Soap •Liquid Wash •Creams •Deodrant •Home cleaners •Utensils •Crokery Bundles FURNITURES BAZAAR • Living Room • Bed Room • Kitchen • Dinning Rooms • Kids Room • Been Bags • Paintings • Decorative Items •Television sets •Washing Machines •Refrigerator •Personal Care •mBazaar •Microwaves •Small Appliances •Laptops •Computer Accessories •Kitchen Appliances OTHERS SERVICES •Mr. right •Bakery •Loot Mart •Tulsi •Future Money •Future Generally PRICE The tag‐line is “Is se sasta aur accha aur kahin nahi”. They work on the model of economics of scale. There pricing objective is to get “Maximum Market Share”. The various techniques used at Big Bazaar are: ‐ Value Pricing (EDLP Every Day Low Pricing): Big Bazaar promises consumers the lowest available price without coupon clipping, waiting for discount promotions, or comparison shopping. Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big Bazaar also caters on Special Event Pricing (Close to Diwali and Durga Pooja). Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non‐peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. Bundling: Selling combo‐packs and offering discount to customers. The combo‐packs add value to customer. PLACE Big Bazaar stores are located in 50 cities with 116 outlets. Big Bazaar has presence in almost all the major Indian cities. They are aggressive on their expansion plans. INDIA •Number of outlets – 116. •Located in main city – tier I& tier city II. •Area 10,000 sq ft – 1,20,000 sq ft. •High street area of city. •Approachable destinations. PROMOTION Big Bazaar started many new and innovative cross‐sell and up‐sell strategies in Indian retail market. The various promotion techniques used at Big Bazaar include “saal ke sabse saste teen din”, Future Card (the card offers 3% discount), Shakti Card, Wednesday bazaar.etc,. Brand Endorsement by M. S. Dhoni, Exchange Offer ‐ ‘Junk Swap Offer’, Point‐of‐Purchase Promotions. Advertising has played a crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV, Radio (FM) and road‐side bill‐boards. Below the line Promotion Above the line Promotion Coupon Discount, more of Giving advertisement in the products at normal news papers, TV, Internet, price, gift with purchase, (own website which gives competitions and prizes, online shoping services) money back offers and Partnership with Bigflix, Big exchange offers, special FM 92.7 occasions PEOPLE They are one of the key assets for any organization. The salient features of staff of Big Bazaar are: ‐ Well‐trained staff, the staff employed by Big‐Bazaar are well‐ suited for modern retail. Well‐dressed staff improves the overall appearance of store. Employees are motivated to think out‐of‐the‐box. Retail sector is in growth stage, so staff is empowered to take innovative steps. Employs close to 10,000 people and recruits nearly 500 people every month. Use of technology like scenario planning for decision making. Multiple counters for payment, staff at store to keep baggage and security guards at every gate, makes for a customer‐ friendly atmosphere. Well trained staff; Appearance; Empowered individual; Encouraged to think out of box Example‐ Ved Prakash Araya (Chief Operating) officer, Sanjib Agrawal(Head Marketing) PROCESS The goods’ dispatch and purchasing area has certain salient features which include: ‐ Multiple counters with trolleys to carry the items purchased. Proper display / posters of the place like (DAL, SOAP, etc.). Home delivery counters also started at many places. PHYSICAL EVIDENCE It deals with the final deliverable or the display of written facts. This includes the current system and available facilities. POSITIONING OF BIG BAZAAR High services Low Price High Price Low services BIG BAZAAR AT BCG MATRIX M A R H K I E G T H G R O W T H L O W ? HIGH LOW M A R K E T S H A R E LIFE CYCLE OF BIG BAZAAR S A L E S FUNCTIONAL DEPARTMENT OF BIG BAZAAR 1. Human Resources Dept 2. Finance Dept 3. Marketing Dept 4. Logistics Dept 5. Sales Dept 6. Customers service Dept 7. Administration Dept Human Resources Dept Selects & recruits employees through various sources such as consultancy services, walk‐ins, Referrals, Campus recruitment . Trains & develops employees through its own specialized training centre known as Gurukul. Motivates all employees to perform to their best through various monetary and non‐monetary rewards. Employees are retained by keeping them happy and satisfied through various schemes of the Company. Regular and periodic performance appraisal of all the employees is conducted and suitably rewarded. WHAT IS HUMAN RESOURCE MANAGEMENT? The effective use of people to achieve both organizational and individual goals. It is actually effective reruitment, selection, development, compensation, and utiization of human resources by organizations. Before few years HR manager was only black box. Their role was more closely aligned with personnel and administration functions. • Potent • Recruiting • Hiring • Training • Organization Development • Communication New H R Role • Coaching • Policy Recommendation • Salary and Benefits • Team Building • Employee Relations • Leadership Key functions Human resource management serves these key functions: •Recruitment & Selection •Training and Development (People or Organization) •Performance Evaluation and Management •Promotions •Redundancy •Industrial and Employee Relations •Record keeping of all personal data. •Compensation, pensions, bonuses etc in liaison with Payroll •Confidential advice to internal 'customers' in relation to problems at work •Career development Big Bazaar People Management System Big Bazaar People management system is built on 5 pillars of people based growth: • Culture Building • Performance Management through Balanced Score Card • People Processes • Management Processes • Leadership Excellence HUMAN RESOURCE DEPARTMENT OF BIG BAZAAR The HR department of Big Bazaar is very dynamic. Employees are the biggest strength and asset of any organization and the HR dept realises this very well. This is very evident from the way the HR department handles all its employees. They take utmost care to select, train, motivate and retain all the employees. programmes for all They have continuous developmental the employees. Currently Big Bazaar Hebbal (Bangalore) is employing 150 full time and 60 part time employees. There are two shifts for the employees. The first shift employees arrive at 10AM in the morning and leave at 7.30 in the evening, while the second shift employees report at 12.30 in the afternoon and leave at the time of Store closing (10pm). For any HR activity one of the major activity is recruitment of the employee. The following are the main sources through which Big Bazaar recruit it employees. Sources of Recruitment a) Consultancy Services: For top level management, employees are recruited through private consultants. They are usually appointed as Departmental Managers. b) Walkins: This is the main source through which Big Bazaar recruits its employees. People seeking job usually themselves approach the HR department for job vacancy. Employees usually selected from this source are appointed at the entry level as team members. c) Employee Referrals: This is the other main source through which employees are selected. Candidates who have given their previous employer as referrals are first interviewed and from their previous employer, opinion is taken about their behavior and performance in the job. If they receive a positive opinion from their previous employer they are selected. d) Campus Recruitment: Young people bring new ideas and fresh enthusiasm. Therefore Big Bazaar visits some of the reputed educational institutions to hire some of the most talented and promising students as its employees. Selection Procedure The following is the selection procedure that the HR department practices to hire its employees. i) Interview: For entry level jobs, the candidates are interviewed by a HR person. They are asked a few basis questions about their education, previous work experience if any, languages known etc. This is done to evaluate the candidate’s ability to communicate freely and also other skills. ii) Psychometric Tests: For higher and top level jobs, candidates are asked to answer a few questions which basically test their sharpness, analytical ability, ability to handle stress, presence of mind etc. This is done as Managers are required to work under stress all the time and still maintain a cool head to make some vital decisions. iii) Group Discussion: In campus recruitment students are involved in a Group Discussion, where they will be given a topic on which the group has to deliberate, discuss and arrive at a solution or a decision which is accepted by the whole group. Along with the G D they are also given a written aptitude test. Finally a formal interview will be conducted to assess the overall skills of the student. Induction New employees selected will be given a 13 day induction and training program. They will be given information about the company’s business, different departments etc. They will be informed of their roles, duties and responsibilities. They will also be informed about the HR policies and rules of the company. The new employees will be on probation for a period of 6 months. After this period the HR period along with the department manager will review the performance of the employee. If the employee’s performance is good and encouraging, the employee’s services will be confirmed. Compensation & Rewards The employees are rewarded suitably with attractive pay packages. The salary of an employee includes basic pay. HRA, special allowance, PF,ESI, Mediclaim etc. Annual bonus will be given at the time of Diwali. The employees and their dependents are also entitled for medical treatment in recognized hospitals with cashless hospitalization with whom the company has tie‐ups. If a hospital is not recognized, the amount spent by the employee will be reimbursed. Along with these all the employees are given a card known as ‘Employee Discount card’ (EDC) through which they can buy any product at Big Bazaar at a special discount of 20‐30 %. Leaves and other rules An employee during his probationary period is entitled for 7 days of leave. A confirmed employee is entitled for 30 days of leave in a year. There is only one type of leave the employees can take which is known as All Purpose Leave (APL). All the employees will be given identity cards which they have to wear and also swipe while at the time of entering and leaving the Store. Performance Appraisal The HR department conducts performance appraisal of all the employees annually in the month of April. Based on their performance increments will be given in their pay. In addition to this if an employee achieves or exceeds the target given to along with their team members will be provided with attractive cash and other incentives Training & Development Future group has its own training division for all its employees, known as ‘Future Learning & Development Limited’ (FLDL). All the employees are given training for 20 days in a year spread over different periods. ‘Gurukul’ which is a part of FLDL gives training to all the employees on various skills like team work, dedication discipline improving customer service etc to make them more knowledgeable and productive Retention Strategy We strive to foster a feeling of well‐being in our employees through care and respect, we have several structured processes including employee mentoring and grievance management programmes which are intended to facilitate a friendly and cohesive organisation culture. Off‐site activities are encouraged improve inter‐personal relationship. We also acknowledge the efforts exerted by our employees by organisation an annual celebration called ‘Pantaloon Day’ where we recognize employees who have shown exceptional talent, sincerity and dedication. We have implemented an employee suggesstion programme called ‘Prerna’ where in the employee can give their suggestions. Every quarter the best suggestion received per zone per format is awarded prize called “Golden Cap”. Internal controls and Risk Management The company uses the services of Ernst & Young for process audit and risk management and the scope of their work covers all the company’s formats i.e. Pantaloons, Big Bazaar, Food Bazaar and Factory Outlet. The objectives are to: Gain an understanding of the various Business Processes Identify the strengths and weaknesses in the existing systems and procedures. Review use of technology in the function Identify key business process risks and review the adequacy of the controls and mitigate them. Test the effectiveness of controls the most significant risks and provide recommendations to improve controls. Identify potential areas for improving process efficiency Broadly develop on improvement portfolio and raise the level of awareness of how business is impacted by inadequately controlled risks inherent in the business process. Internal audit of our each store is also undertaken by an independent audit firm on monthly/quarterly basis. WHAT MOTIVATES EMPLOYEES? The main issue that every manager talks about relating to his employee is, that he might have better‐motivated employee. In Big Bazaar the scenario is different. Here employees are motivated through various ways and some of the ways are discussed below. • Feeling “in” on things. • Good wages. • Good working conditions • Job security • Full appreciation of work that is done • Tactful disciplining • Employer loyalty to employees • Interesting work • Promotion and growth in the organization WHAT MOTIVATES EMPLOYEES? Rank Feeling “in” on things 8 Good wages 1 Good working conditions 4 Job security 2 Full appreciation of work that is done 5 Tactful disciplining 9 Employer loyalty to employees 7 Promotion and growth in the organization 6 Interesting work 3 Work Culture at Big Bazaar At Pantaloon Retail, Empowerment is what you acquire and Freedom at Work is what you get. We believe our most valuable assets are our People. Young in spirit, adventurous in action, with an average age of 27 years, our skilled & qualified professionals work in an environment where change is the only constant. Powered by the desire to create path‐breaking practices and held together by values, work in this people intensive industry is driven by softer issues. In our world, making a difference to Customers’ lives is a Passion and performance is the key that makes it possible. Out of the Box thinking has become a way of life at Pantaloon Retail and living with the change, a habit. Leadership is a value that is followed by one and all at Pantaloon Retail. Leadership is the quality that motivates us to never stop learning, stretching to reach the next challenge, knowing that we will be rewarded along the way. In the quest of creating an Indian model of retailing, Pantaloon Retail has taken initiatives to launch many retail formats that have come to serve as a benchmark in the industry. Believing in leadership has given us the optimism to change and be successful at it. We do not predict the future, but create it. At Pantaloon Retail you will get an opportunity to handle multiple responsibilities, and therein, the grooming to play a larger role in the future. Work is a unique mix of preserving our core Indian values and yet providing customers with a service, on par with international standards . At Pantaloon you will work with some of the brightest people from different spheres of industry. We believe it’s a place where you can live your dreams and pursue a career that reflects your skills and passions. Measurement of Customer Satisfaction We have devised a model called CEM‐ Customer Experience Management Model to measure customer satisfaction in our stores. The Customer Experience Management Model focuses on the customer’s experience at every touch point in the store ranging from their first impression of the store, to their experience at the trial rooms, toilets, with our staff through various processes such as billing and exchanges. We have hired a research agency called MACRO Market Analysis and Consumer Research Organization. This agency sends people who are called ‘Mystery Shoppers’ to visit the stores and then their experience is documented on a feedback form, which is then sent to us. Based on the feedback formed analysis is done and the stores are given scores. This allows us to track performance on customer expectation at overall, format and store levels, determine critical improvement areas are all levels and also identify opportunities that we can leverage upon. Besides, we have also started an in‐house initiative called ‘Pragati’ whereby one person from the head office operations team visits the stores and observes the stores with respect to certain pre‐parameters like store exteriors, baggage window, customer service, store ambience etc. This activity is done on a quarterly basis and three best stores under each format are announced. This encourages the stores to improve the efficiency of their store operations. FINANCE DEPARTMENT Finance is the life blood of any business. The South Zone Head office located at Jayanagar, performs most of the financial functions and therefore the Finance department of Big Bazaar, Hebbal performs a few basic functions, such as preparing the Store’s ‘Income and Expenditure Statement’ giving full particulars of all items. It also prepares the budget for expenditure at various levels on different items. This department is also responsible for deciding and giving the weekly, monthly and yearly sales targets and the margins for all the departments separately. The Finance department is also responsible for collecting and depositing the cash received in the company’s bank account daily. Review of Performance: The company crossed $1 billion turnover mark during the year under review, having recorded a robust growth in both the topline as well as in bottom line. Prepares the budget for expenditure at all levels. Decides and gives the sales targets for all the departments periodically. Maintains the books of accounts Collects & deposits the cash received daily through sales in the Company’s bank account Profit & Loss Summary Particulars 09(Rs .in Crs) Jun Net Sales / Income from Operation 6342 5049 25.6 Other Income 6 4 61.3 PBDIT 674 464 45.3 Depreciation 140 83 67.9 PBIT 534 381 40.3 Interest 318 185 71.8 PBT 216 196 10.5 Tax 76 70 8.6 PAT 141 126 11.6 Cash Profit 281 209 34 YOY 08- IN Jun DEC percentage of sale 09-Jun 08-Jun 100 0.1 10.6 2.2 8.4 5 3.4 1.2 2.2 4.4 100 0.1 9.2 1.7 7.5 3.7 3.9 1.4 2.5 4.1 Balance Sheet Summary Particulars Source of Funds Net Worth Loan Funds Deferred Tax Total Application of Funds Fixed Assets CWIP Investment Current Asset Current Liablities Net Working Capital Total Debt / Equity Ratio Amount (Rs in Cr) 2009 2008 2286 2850 116 5252 1569 345 954 3283 898 2384 5252 1.25 1847 2192 68 4106 1198 331 587 2629 638 1991 4106 1.19 Cash Flow Summary Particulars (Rs in Crs) Source of Fund Opening Cash Share Capital Retained Earnings Increase / (decrease) in Borrowing Total Application Of Fund Fixed Assets & CWP Inc / Dec In Working Capital Investment Closing Cash Total 09-Jun 121 299 326 659 1405 523 405 368 109 1405 08-Jun 163 690 155 892 1900 801 643 335 121 1990 Marketing Department Marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals. For a firm in order to implement the marketing concept it has to focus its attention on the consumer, ascertain his/her needs, discuss and wants before Every Brand appeals to individual customers in different ways. Good customer service is the life blood of any business. Good customer service is all about attending to existing and potential customers. concept relationship marketing. Traditionally, marketers have located their target market segments, presented their offer, and made the sales. It's always been a single step process. Relationship marketing looks at customers and clients over a longer term. It takes into account the lifetime value of a customer. Many experts think it costs anywhere from six to ten times as much, to find a new customer, than to sell to an existing one. With those financial realities in mind, the approach makes some sense, and some real dollars. Relationship marketing is based on the idea that people prefer to do business with people who they know and like. After all, it's easier to buy from a friend, than from someone you've never heard of before. It's a matter of building trust. It's said that people need to hear an offer at least seven times before they buy. That concept certainly works against the single step marketing method. The Marketing department is responsible for marketing of Big Bazaar’s products through different media like TV, radio, newspapers, banners, placards etc. The marketing department has to decide and identify the most effective medium to attract the customers to Big Bazaar thereby increasing the sales. The department has to design creative and attractive advertisements through which the company’s products can be promoted to the customers. The company has to visit different companies and has to enter in tie‐ ups for all its advertisement campaign. The marketing department also consists of another separate department which is known as ‘Visual Merchandising’. Visual merchandising is an art by which a retailer makes the store talk to its customers. The colours, signage, lights, look and feel, everything is taken into account. It is very important to figure out what is the story, the picture, the idea that is being sold to the customers. Another concept that was incorporated in Big Bazaar from the beginning was that of ‘Category management’ as opposed to the brand merchandising practice that is followed by many retailers. Category management is based on the belief that a customer walks into a store looking for party shirt or a formal trouser, rather than a particular brand. Therefore the store is designed according to the categories like men’s formal wear, women’s western wear or a casual wear, etc. Within the organisation too, teams were divided according to the categories that they managed, rather than the brands. Big Bazaar wanted to have a complete bouquet of products in each category at different price‐points, design, fabric, size and colour. The objective was to create ‘traffic drivers’ within the Store rather than make brands compete with each other. Focussing on categories also helped to achieve a level of perfection within the specific segments. This department is responsible for the attractive product arrangement in the Store with respect to their nature. The basic function of this department is it divides the Store into some departments based on the nature of the product and also within the department it decides how the products should be arranged keeping in mind the customers taste. It also arranges the products to attract the customers and also ensure easy availability of products. Customers enjoying their shopping experience Logistics Department Is responsible for procuring the stock of all the products of the different departments. Receives the goods from the warehouse located at Hosakate and then verifies whether it adheres to the particulars given in the Goods received statement. Despatches the goods to the respective department after recording it in the Goods inward register If there is a damage in the goods or if the goods do not match the details given in the Goods Received Statement, it enters in the Stock Outward Register and sends it back to the warehouse along with a Goods Returned Note. Supply Chain Management An indent will be kept by the front end team of a particular department to category team of central office. The category team will raise a STOCK TRANSFER OUT(STO) and send it to the DELIVARY CENTRE(DC) or WAREHOUSE. The DC will generate stock picks and starts picking. DC will generate STOCK TRANSFER NOTE(STN) and Gate pass. DC will transfer the stock to stores. Here starts the part of logistics. Logistics Logistics is a part of supply chain management which deals with the In warding and out warding of goods as well as non salable items. RECEPTION OF GOODS FROM DC: As soon as we receive the goods we check for seal condition and number as mentioned in the gate pass, delivery note. Then the security in the logistics department will randomly check the number of cartons. Then we will inform the particular department regarding the reception of goods. we will check the items in front of that particular department’s team member in stock transfer number wise. With the help of department member we will find out any discrepancy(shortage/damage/expiry) and inform it to supply site. There will be a inward register in which we enter all the details of in warding ,the entry will also be done in the system. Then the department member will move the stocks to the floor. Reception of goods from the Vendor If the goods are from vendor we will check for TAX INVOICE and PURCHASE ORDER Here the vendor himself has to go to the respective department and has to take permission for the submission of goods in logistics. After that we will prepare (GRN) Goods Receive Note of three copies. i.e. for logistics, for respective department and for D.C or vendor. Finally it is the duty of the department to Collect their respective goods from logistics. All the above process is for inwarding. There are some few cases below in which out warding is done. Home delivery Store to store transfer. Damage or expiry stocks return to warehouse or vendor. Return of non saleable items. REGISTERS MAINTAINED BY LOGISTICS IN BIG BAZAAR Food bazaar out ward Big bazaar outward Vendor schedule register Bar code register Free gift register. Scrap register. Big bazaar vendor security inward register. Big bazaar ware house security inward register Some interesting Facts PRODUCT Revelon Eye liner Lee cooper Lee cooper Soap Box Bucket COST PRICE 206 937 812 2.30 28 SELLING PRICE 380 2285 1985 9.50 72 Sales Department This department is responsible for the collection of sales amount i.e., cash sales. There are in all 25 cash counters in the Store. There is a Head Cashier to whom all the cahiers report and submit the total sales amount collected throughout the day by the cashiers. In addition to cash all leading credit and debit cards are accepted at no extra charge. Also Big Bazaar vouchers and Sodexho coupons are also accepted. A cashier at the time of opening his billing counter will be given an opening balance of Rs.1000. The cashier has to ensure that all the offers applicable on respective products are given to the customer in his/ her bill. Also if any free items are given on some purchases, it should be informed to the customer clearly. After the billing is done, the cashier has to pack the products neatly in a plastic cover according to the customer’s needs. At the time of closing the billing counter, the cashier has to give a statement of cash, with all particulars of different denominations of cash, amount collected through credit cards, amount collected in debit cards, amount collected in Sodexho coupons & Big Bazaar vouchers and also amount collected through Credit Notes. Wednesday Bazaar is a very important and popular event in Big Bazaar. Every Wednesday fabulous offers and great discounts are given on most of the products. Customers arrive in large numbers as they realize that it is on Wednesday that products are offered at the lowest prices. On Saturday and Sunday also the customer turnout is high, as it is on the weekends that most of the customers find time for shopping. They arrive along with their family to enjoy the shopping experience. Good discounts and offers are also provided to attract more number of customers. Retailing is not just about selling products —it is about selling an idea. Why do people in shop when they are bored or depressed? It is not just because they have the money to buy, but because they want to go through an experience. It is very crucial in retailing to make customers relate to every product that is being sold, as well as the Store’s environment. Customers Services Department As the name suggests this is the separate dept which mainly focuses on customer service like if a customer finds difficulty in finding any product, if there are any customer complaints, they are also looked into, any customer assistance etc. is also provided. There is also an Exchange Counter where if a customer is dissatisfied or wants to exchange the product he/ she has purchased for any reason , the customers can exchange them within 7 days of their purchase. When a customer brings a product for exchange, the product is first received and checked if it is used or deliberately damaged or tampered with. If it is in an acceptable condition, then the customer is issued a Credit Note for that amount (product’s price). Then customer can purchase any product for that amount or just take back the money by encashing the credit note at a cash counter. If the customer buys a product less than the amount in the credit note, the difference amount will be returned to the customer and on the other hand if a customer buys a product more than the amount in the credit note, the customer will be asked to pay the difference amount. This department is also responsible for announcing all the offers running in the store on different products throughout the day. This dept also does gift wrapping for any product if the customer wants it at free of cost. The dept also collects customers’ opinion / feedback for continuous improvement in their service. The ultimate aim of this department is to help and satisfy the customer in every possible manner and makes the customers’ experience memorable. Administration Department The Store administration comes under the Store Manager. Its functions are store maintenance, housekeeping, security etc. The store maintenance is concerned with the proper running of the store in co‐ordination with all the departments. It also has to ensure proper back –up power supply in times of power cuts. The Housekeeping is concerned with keeping all the departments of the Store clean and neat all the time. Covers and other wastes should be properly cleaned and the floor is swept regularly to keep it clean. The Security section is concerned with the security of the entire store. Security department keeps a vigilant check on all the people entering and departing at the various entry and exit points in the store. They also maintain all the registers like employees’ attendance register, stock register, visitors’ register etc. They check all customers’ bill before letting them out of the store. They ensure orderliness in the store and prevent shrinkage or pilferage of goods to minimise the loss arising out of it. The housekeeping and security are outside agencies employed by the store on a contract basis to take care of the respective functions. The Administration department also has a separate section known as ‘Information Technology’. This department is responsible for the maintenance of all the systems of the Store, all billing machines their functioning networking with the master machine etc. If there is any problem with the machine in any department in the store, then this department comes into function. This dept integrates all the systems in the store and properly maintains all of them. SWOT Analysis Of Big Bazaar Strengths Better understanding of customers helping the company to serve them better. Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience. Benefit of early entry into the retail industry. Diversified business operating all over India in various retail formats. Ability to get products from customers at discounted price due to the scale of business Weaknesses High cost of operation due to large fixed costs. Very thin margin. High attrition rate of employee. Opportunities Lot of potential in the rural market. Can enter into production of various products due to its in depth understanding of customers’ tastes and preferences. Can expand the business in smaller cities as there is a lot of opportunity . Threats High business risk involved. Lot of competitors coming up to tap the market potential. Margin of business reducing all the time. Brands In Big Bazaar Big Bazaar has gradually introduced private labels in fashion over the last few years. Every year, new, private labels are introduced to increase their share over other brands. These are known as ‘In House brands’ which are exclusively promoted by Big Bazaar in its stores. It is very important to promote and sell these brands aggressively, since they contribute to higher margins thereby contributing heavily to the bottom line. It is the men’s formalwear brand with arrange that includes formal shirts, trousers, suits, blazers and basic men’s accessories like ties and handkerchiefs. KNIGHTHOOD The complete ethnic wear range offering a range of traditional designs for ladies encompasses both salwar kameez sets and mix & match/ fusion wear. SRISHTI SHATRANJ The men’s ethnic wear range consists of kurtas, kurta pyjamas sets and sherwani sets. DJ & C India’s cool answer to international brands is positioned for the 20‐35 year age group. It targets both men and ladies and the range includes designer denims, casuals, street‐wear. DJ & C Sports This is a unisex sportswear range for the age group of 20‐40 years. SHYLA True to its tagline ‘what women want’, Shyla offers a complete range of formal/ semi‐casual line of ladies tops, trousers, skirts, etc. STUDIO NYX It is a range of men’s party wear. PINK & BLUE The kids’ brand range created to celebrate the spirit of childhood, has the blue range for boys and pink for girls. There is an infant line also available as well. Pink & Blue covers the entire apparel needs of kids across t‐shirts, shirts, jeans, trousers, shorts, dresses and ethnic‐wear/ occasion‐wear. CTEE Men’s T shirts Big Bazaar, India's largest hypermarket chain, a part of the Future Group, announced the launch of the exclusive Fashion @ Big Bazaar ‘London Dreams’ Fashion Collection, a range of exclusive apparel, which captures the style statement of the ‘London Dreams’ cast. Big Bazaar stores across the country will showcase the very youthful apparel and fashion specially created for the stars of London Dreams. With an intention to fulfil the dream of dressing up the youth, and ‘Fashion jo Star bana de’ promise, Fashion@Big Bazaar will have the youthful collection. LONDON DREAMS OTHERS BRANDS AT BIG BAZAAR WORK EXPERIENCE ROLES AND RESPONSIBILITIES HANDLED: My role was customer service associate. I did sales in department like general merchandise. PUC department in particular, in fashion department, and Electronics department then I met with the customers and got the feedback. DESCRIPTION OF LIVE EXPERIENCE When I was in Fashion department I learnt how to serve the customer, specifications of the product in Fashion department. I learnt about private labels of pantaloon retail India ltd. Then I moved to Electronics Department @ big bazaar, met with the customers to know about the customer’s opinion on Electronics products at big bazaar. conclusion Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business tycoons. There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has created formats, which provide all items less than one roof at low rates. The consumer’s preferences are changing & they are moving from Traditional Kirana stores to Modern Retail outlet. It’s the main challenge to the Modern retail outlets to attract the customers towards them from that of competitors. To attract more customers companies have to carry out the promotional activities in unique way. BIG BAZAAR has maintained that uniqueness & has succeeded in attracting customers. The promotional activity of the company, which famous as Less Price than others as it says ‘Nobody Sells Cheaper and Better!’ is made its place in minds of customer. As the competition is becoming stiff in the market the activities conducted by the company are unique, that have brought fruitful result to the company. Among them sales Promotions is one of the leading activity or unique among all other activities & has high influence on the customer walk-in. BIBLIOGRAPHY Websites: www.pantaloon.com www.indiaretailing.com www.google.com Books, magazine & newspaper Image retail, business line, economic times etc,.
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