SUMMER TRAINING PROJECT REPORT ON“EFFECTIVENESS OF RETAILING MIX IN BIGBAZAAR ” Submitted To : Ms. SHWETA CHANDRA LECTURER SMS,VARANASI Submitted By: Vishal Singh RM/01/54 In partial fulfillment of the requirement of POST GRADUATE DIPLOMA IN RETAIL MANAGEMENT course Session :2007-09 School of Management Sciences 1 2 DECLARATION I hereby declare that the information presented here is true to the best of my knowledge. Also, the report has not been published any where else. VISHAL SINGH 3 4 PREFACE PGDM is the one of the most reputed professional coures in the field of Retail Management.It include theory as well as its practical application.Summer Training is an integral part of PGDM-retail programme, for sucessful completion of this programme require two months summer training in retail organisation. So after completion of second semester each student at School of Management Sciences,Varanasi need to under go two months training in an organisation. This training serves the purposes of acquainting the student with environment of an organisation in which student have to work hard in future .Only theoretical knowledge is not enough but its practical application is also required to be learned. I was fortunate enough to have an opportunity of doing summer training at BIGBAZAAR,MEERUT. Every trainee was required to prepare a report of his working in the organisation. I was assigned a project on “EFFECTIVENESS OF RETAILING MIX IN BIGBAZAAR.” In this report,all the important findings of the project are included ,over and above an overall profile of the company(PANTALOON) is also given.It is hoped that this report will make the readers familiar with the store and also give the idea about the product and services offered by the company. 5 6 Acknowledgement The project of this magnitude would not have been completed singly. Firstly I want to give my hearty thanks to all mighty who made the world and me also. There are many other people without whom the completion of the project would not have been possible. Some have contributed towards this directly while other have provided indirectly. It gives me immense pleasure to thank Mr. Rakesh Sharma(Store Manager) for providing me summer training in his reputed organization and giving me a chance to have the experience of actual retail operations. I am indebted to Mr.RajShekherSaxena(MarketingExecutive)of BIG BAZAAR for his guidance and cooperation in completing this project. Last but not the least I would like to convey my heartiest gratitude to all Members of BIG BAZAAR who helped a lot during my summer training. . 7 v TABLE OF CONTENTS COMPANY PROFILE 8 S.NO. 1 2 3 4 5 6 7 8 Contents Location Organization Structure Management style Department and Products Competitors Strategy Group vision, mission and values SWOT Analysis SUMMER TRAINING PROJECT 9 10 11 12 13 14 15 16 17 Introduction Research Objective Research methodology Analysis and Interpretation Findings Recommendations Limitations Bibliography Questionnaire 9 Company profile 10 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 10 million square feet of retail space, has over 1000 stores across 61 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, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar 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 E-Zone focused 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. Pantaloon is not just an organization - it is an institution, a centre of learning & development. We 11 believe that knowledge is the only weapon at our disposal and our quest for it is focused, systematic and unwavering. At Pantaloon, we take pride in challenging conventions and thinking out of the box, in travelling on the road less traveled. Our corporate doctrine ‘Rewrite Rules, Retain Values’ is derived from this spirit. Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before any other Indian retail company attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our leadership value, the company launched aLL in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women. Today we are the fastest growing retail company in India. The number of stores is going to increase many folds year on year along with the new formats coming up. The way we work is distinctly "Pantaloon". Our courage to dream and to turn our dreams into reality – that change people’s lives, is our biggest advantage. Pantaloon is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking questions; it means never having to stop raising the bar. It is an opportunity to 12 take risks, and it is this passion that makes our dreams a reality.Come enter a world where we promise you good days and bad days, but never a dull moment! Future Group Future Group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The group’s flagship company, Pantaloon Retail (India) Limited operates over 10 million square feet of retail space, has over 1,000 stores and employs over 30,000 people. Future Group is present in 61 cities and 65 rural locations in India. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail format, futurebazaar.com. Future Group companies includes, Future Capital Holdings, Future Generali India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group’s joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and India-based Talwalkar’s, Blue Foods and Liberty Shoes.Future Group’s vision is to, “deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.” The group considers ‘Indian-ness’ as a core value and its corporate credo is- Rewrite rules, Retain values. 13 Mr. Kishore Biyani Managing Director (FUTURE GROUP) 14 Major Milestones 1987 Comp any incor porat ed as Manz Wear Privat e Limit ed. Launc h of Panta loons trous er, India’ s first forma l trous er brand .199 1 1992 1994 Launch of BARE, the Indian jeans brand. Initial public offer (IPO) was made in the month of May. 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. John Miller – Formal shirt brand launched. Pantaloons – India’s family store launched in Kolkata. Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched. Food Bazaar, the supermarket chain is launched. Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - 1995 1997 2001 2002 2004 15 India’s first seamless mall is launched in Bangalore. 2005 Fashion Station - the popular fashion chain is launched aLL – ‘a little larger’ - exclusive stores for plus-size individuals is launched 2006 Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali. Our culture At Pantaloon, 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 and living with the change, a habit. Leadership is a value that is followed by one and all at Pantaloon. 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 16 creating an Indian model of retailing, Pantaloon has taken initiatives to launch many retail formats that have come headed for 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 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. Department and products of Big Bazaar Total stores all India ~ 85…………………………North zone - 18 Food Bazaar HCPC -Home care & Personal care includes-Detergents ,Soaps,Cosmetic,Non Food Home needs farm fresh - fruits & vegetables Hungry kiya -packed food such as - Biscuits,Noodles,jam,Sauce, Pickles,Namkeen,Chocolate Chilli zone- Cold storage products such as cold drinks,juice,butter, frozen food staples - Dal , Chawal, sugar, cooking oil, Spices, Ghee Big Bazaar Depot - Books,Stationary items,Cd's 17 Mobile Bazaar- all kind of mobile pones, Accessiories,Recharges, Connections Home lenin- Bed Sheets, Towels,pillows, Carpets, Doormats Gift items- Photo frames , Decorative items Starsitar/cosmetic(SIS) - Revelon, Lakme Toys- Board games, Spot toys Navras - Gold, Silver, Diomond jwellery items Footweare - All kind of shoes, slippers,casual as well as formal footweare Apprels Mens, Ladies, Kids - full range of clothing as well as accessories Plastic, Utensiles, crockery - entire range such as loose utensiles, cookers GasStoves, Dinner sets, plastic Containers Electronics - T.V. ,Refridgerator Washing Machine, Microwave ,Mixer Grinder , Iron Range & variety of 1,60,000 products Discount up to 60% New discoveries in retail In the financial year 2006-07, the company’s retail businesses discovered new categories across formats, new sets of consumers and fresher and contemporary merchandise. We have been able to offer more in the established businesses and gain favourable acceptance with new concepts. In addition, concerted expansion plans saw retail space increase to over 5.2 million square feet at the end of 2006-07. This expansion mode was characterized by a twopronged approach. By dominating the cities the company was already present in and by bringing the benefits of modern retail to towns and cities like Mangalore, Palakkad, Surat, Indore, Kanpur, Haldia, Agra, Coimbatore, Jaipur and Panipat. The company has also undertaken significant private label initiatives in food, in 18 general merchandise and in the consumer durables and electronics categories. Strategic alliances have also been forged with established domestic and international brands. However, the most significant development was the internal realignment the company undertook within each of its retail businesses. To embark on a more detailed approach towards value creation and increasing efficiency, the company reviewed its business operations and adopted a more focused approach by creating an integrated support unit or Line of Business. Augmenting the retail front-end team, Line of Business (LoB) units have been created in the three most critical businesses – food, fashion and general merchandise. Formed during the second half of 2006-07 these business units focus on introducing optimum operational efficiencies. Thus, these units ensure that back - end measures are appropriately taken care of and the right kind of merchandise reaches the stores in the best possible time, at the right price. These teams focus on product consolidation and suitability, margin improvement, and vendor rationalization, thereby ensuring that the sourcing benefits are made available to the front - end team. The company’s efforts over the next couple of years would entail a combination of expansion and process upgradation and implementation. The emphasis will be on the next discoveries to be made in the retail space that will lead to expansion. At the same time, there will be an increased focus on micro detailing aspects including process, product and operational efficiencies thereby contributing positively to the company’s bottomline. 19 discovering fresh fashion 20 It was the first Pantaloons store in Kolkata that set off a chain of discoveries that have led us to where we are today. Ten years later, we have launched our largest Pantaloons store in Kankurgachi in Kolkata. Spread across 85,000 square feet, the store is the first among a series of large format stores that will be launched across the nation. After consolidating its Fresh Fashion positioning, Pantaloons embarked on a major expansion during the year 2006-07. In 8 cities,11 Pantaloons stores were opened with 7 of them opening in the single month of March 2007. The total count of Pantaloons stores as on 30th June 2007 stood at 31 with the total area under retail close to 1 million square feet. In order to maintain the top of the mind association with fashion in India, Pantaloons continued to be the title sponsor for the Femina Miss India 2007 pageant. In addition, Bipasha Basu and Zayed Khan were roped in as brand ambassadors in the month of August 2006. The success of this initiative was evident in the increased sales for the ‘Haldi Gulal’ range as well as the ‘Svayam Utsav’ summer collection that were endorsed by Bipasha and Zayed. The private label apparel share during the year was in excess of 70 percent. The year also witnessed categories like Winter-wear and Ethnic Ladies-wear strengthening their presence in the stores. The increasing success of the store brand is evident from the fact that the store’s loyalty programme, Green Card, added 200,000 new members. Pantaloons will see a significant expansion during the coming year with an increase of nearly 0.50 million square feet of retail space and an addition of about 15 stores. Pantaloons will look at dominating cities where it has a first 21 entrant advantage and will scale up sizeably with larger stores, additional categories and retail formats. The year 2007-08 will witness considerable focus in the North and East regions. Delhi and the NCR area along with Punjab, Chandigarh and Ludhiana will see the next stage of expansion. Cities like Ranchi, Guwahati and Siliguri in the East will also discover Fresh Fashion. discovering more value 22 In 2006-2007, more Indians discovered the value of shopping in Big Bazaar. And with the launch of each store, we discovered more value in terms of operational efficiency. Big Baazaar launched 27 new stores in 22 cities, covering over 1.40 million square feet. As of June 2007, there were 56 Big Bazaar stores across 43 cities. While Big Bazaar continued to expand in the large cities, it also tapped consumption potential in smaller cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakkad, Kanpur and olhapur. The year under review also witnessed realigning of business teams with shared experience in category management, sourcing, front-end operations and business planning. In addition, separate teams have been formed to look into all aspects of new store launches and to manage mature stores. This provides more flexibility and focus in expansion plans. The increase in SKUs in existing categories and the introduction of new categories encouraged the opening of larger stores or Super Centres, measuring 100,000 square feet or more. There are now 5 Big Bazaar Super Centres. Considering this scale of expansion, technology plays a significant facilitating role. The introduction of SAP in 2005-06 and its roll out during the year, positively impacted the business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus improving operational efficiencies and productivity. The company has also rationalized nearly 250 vendors through better vendor management in terms of potential to expand, and for inclusion and upgradation to the online B2B platform. The company plans to open over 60 stores across India in FY 2008, 23 and the opening of the 100th Big Bazaar store will mark the fastestever expansion by a hypermarket format. discovering the new consumer 24 Based on the company’s in-house consumer data and research, and in cognizance with observations on customer movements and the shopping convenience factor, Food Bazaar has initiated certain refurbishments and layout design across all stores. The intention is to continuously change with the times and demands of the evolving Indian consumer. Food Bazaar also witnessed healthy expansion during the year 2006-07, making its presence felt in nearly 26 cities and adding 40 stores during the year under review. The total count of Food Bazaars as on 30th June 2007 stood at 86 stores. The year under review witnessed the company’s private label programme gaining significant traction. The brands have been very competitive vis-à-vis the established brands in quality and price terms, and have in fact scored better than national or international players in certain categories. The share of private labels as a percentage of total Food Bazaar revenues has increased significantly and comprise nearly 50 merchandise categories. While Fresh & Pure brand entered categories like cheese slices, frozen peas, honey, packaged drinking water and packaged tea, the Tasty Treat brand received a very favorable response in new categories like namkeens and wafers. In the home care category, Caremate launched aluminum foil and baby diapers while Cleanmate launched detergent bars and scrubbers. A new format ‘BB Wholesale Club’ was launched and 4 such stores have been opened so far. To be managed by Food Bazaar from the ensuing financial year, 25 this format sells only multi-packs and bulk packs of a select range of fast moving categories and caters to price sensitive customers and smaller retailers. The company has also forged tie-ups with established companies like ITC, Adanis, DCM Group, USAID and other farm groups in Maharashtra and Madhya Pradesh to source directly from them. These alliances are expected to drive efficiencies as well as bring better products to consumers. By the end of FY 07-08, the total number of Food Bazaar stores is expected to be 200. Future ideas Discovering new opportunities 26 Future Ideas is the Innovation, Design & Incubation cell within Pantaloon Retail that stems from the core proposition - ‘Protecting and preserving the soul of a small business or enterprise within a large organisation.’ Future Ideas deals with the whole aspect of idea creation, scenario planning activities, alternate approaches to an issue, providing varied outcomes and solutions to a problem and handholding the activity till its success parameters are satisfied. A unique initiative in corporate India, Future Ideas rests on a tripod that can be classified as Innovation driven, Design Management approach and an Incubation chamber, each with its own uniqueness, yet with common objectives. The Design Management team looks at each observation made by the Innovation team, and brainstorms by using a collaborative and holistic approach. The resultant ideas are then nurtured within the Incubation cell. The Incubation team comprises of business teams, mentored by the Innovation and Design teams. They are people who are released from their original businesses or concepts and made part of the entire ideation process at Future Ideas. They remain at Future Ideas till project completion stage when the success parameters for running the business are met. Future Ideas draws inspiration for most of its activities and projects, keeping in mind the new genre of aspirational Indians. At any point of time Future Ideas would work on about 20 varied projects within the Future Group. Some of the formats that are now being incubated by this team include Top10, Depot, Star & Sitara and Talwalkars’ Fit & Active. The team is also working on ideas around small format no-frills stores, rural retailing, fashion for the masses and on projects involving women and self-help groups. Discovering new segments 27 Depot, in many cities, is the first modern retailer in books and music and the response has been overwhelming. The core differentiators of Depot are its young, colorful and vibrant stores, strong regional range, affordability and a private label publishing program - Depot Exclusives. In its first year of operation, Depot has launched 6 stand-alone stores and 50 cut-ins. Along with its expansion in major cities, Depot debuted in smaller towns like Rajkot, Vadodara, Haldia, Thrissur, Palakkad and Tiruvanantharam. The Depot Exclusives (released solely inDepot) catalogue expanded rapidly with over 100 titles across genres like children’s books, cookery, regional literature etc. Reputed authors/ imprints like Nita Mehta and Sanjeev Kapoor in cookery, Disney in children’s books etc., have been associated with the company. Depot has also tied-up with the UK based publisher of children’s books, Small World, to co-publish a series of toddlers’ interactive books. In FY 2007-08, the total Depot footprint should cross over 100 stores. The Health, Beauty & Wellness business opened 35 new outlets in the beauty products, services and holistic health care formats Multiple formats operate in this segment, including Tulsi, the pharmacy chain and Star & Sitara, the beauty products cut-ins and Star & Sitara Salons. The largest format, Beauty Free offers unique combination of products, services and holistic health offerings. 28 To capture the increasing consumption spend on wellness and preventive health care, the joint venture between Pantaloon Retail (I) Limited and Talwalkar Better Value Fitness opened its first ‘Talwalkars Fit & Active’ health centre at Orchid City Centre, Mumbai in April 2007. Spread over 5,200 square feet, it is the country’s first health centre to offer health, fitness and gym services within a modern retail and consumption environment. The venture is also looking at innovative value added offerings in the fitness space as well as developing a Spa model for the Fit & Active brand across the country, by increasing its presence to nearly 50 such centers in the near future. Human Resources Discovering talent diversity The company strongly believes that its sustainable competitive advantage lies in the values that it cherishes, the culture that it imbibes and spirit of enterprise that resides within the organization. Talent management therefore continues to be the core focus for the company. Considering the multiple businesses and rapid expansion expected across the business, the company saw merit in taking a fresh 29 guard to the way in which business would run in order to meet the next leg of expansions. During the year 2006-07, the company conducted an extensive review of inhouse talent management, which involved mapping every managerial position in the organization for their skill sets, competence and attitudinal aspects as well as taking an inventory check of the existing talent base and addressing their development needs. Development Centres were created with in-house assessors, which further aided in identifying potential resources and helped chalk out post assessment development plans. Continuing with its policy of strategic alliances, the company is collaborating on joint degree programs with 15 management schools, design institutes and institutes of higher learning in areas like food business, supply chain management, design experience management etc. This ‘Seekho’ programme for external and internal candidates has ensured a steady stream of mid level, well trained retail professionals every year. The company’s ‘Gurukool’ programme provides the front-end employees an opportunity to imbibe the company’s values and a sense of ownership to the company. The company has also created an Employee Growth Trust Fund that was launched during the last financial year for the senior management. Equal Opportunity The company believes that in order to build a sustainable business environment, the composition of its talent base needs to reflect the diversity that exists in our country and among its customers. Therefore the company ensures that the 30 proportional representation of different communities in the Indian population is mirrored in its employee profile. The majority of employees in the company come from socially and economically marginalized sections of the society. Close to 46% of the employees in the organization are women and the average age within the organization is 27 years. The effectiveness of its talent management initiatives is reflected in the fact that the annual rate of attrition is 8.12%, much below industry levels. The company plans to strengthen its employee platform to about 30,000 people by FY 08, from nearly 18,000 people as on FY 07. Human Resource Initiatives Pantaloon Retail believes that one of its sustainable competitive advantages will continue to be the people who are part of the organization. Being in service industry, the Company places a lot of focus is placed on attracting, training, incentivising and retaining talent. The vision is "To provide an environment that creates happy people who have a meaningful life and add value to business and 31 society." With over 18000 employees at an average age of 27 years, the Company prides itself on being a young and energetic organization, driven through the 'The Pantaloon People Management System'. This is built on 5 pillars of people based growth, namely - Culture Building, Performance Management through Balanced Scorecard, People Processes, Management Processes and Leadership Brilliance. Training A competent Learning & Development Team is responsible for training employees at all the levels across the countr y, focusing on primary and secondary research into various aspects of retail and assessment of training needs across Knowledge, Skills & Attitude areas. The emphasis is on creating product and process knowledge through well defined programs like Praarambh and Parikrama. For the critical front line staff, the Company's unique outbound residential training program Gurukool focuses on integrating the mind, body and soul and brings about measurable attitudinal and behavioral changes. The program has covered nearly 4,500 employees. The SMILE initiative for training of new Store Manager's has been created and disseminated to over 100 store managers by this team. Review of Financial Performance of the Company for the period under review Sales The Company's turnover has increased from Rs. 1758.50 crores to Rs. 3031.44 crores, an increase of 72.39 % over the previous year. The Company has also recorded same store growth of 16.88% during the year. 32 Operating Profit Operating profit of the Company for the year 2006- 2007 stood at Rs.218.74 crores as compared to Rs. 149.64 crores in the previous year, an increase of 46.18% over the previous year. The operating margin has come down to 6.76% in the current year as compared to 8.01% in the previous year. The reported figure is exclusive of extraordinary gain of Rs. 88.88 crores. The fall in margin is the result of change in sales mix with an increasing share of low margin products as well as due to marginal increase in personnel cost. Net Profit Net profit of the Company for the year under review stood at Rs. 119.99 crores as compared to Rs. 64.16 crores in the previous year, an increase of Rs. 55.83 crores and 87.01% over the previous year. Capital Employed The capital employed in the business increased by Rs.1291.39 crores in 200607. This is reflected in the liabilities side of the balance sheet through an increase in borrowings by Rs. 698.19 crores and an increase in equity by Rs. 565.28 crores. Return on capital employed has been declined from 18.30% to 17.48% on account of significant investment in subsidiaries and joint ventures and lease rental deposits given for stores. SWOT ANALYSIS Opportunities, Risks and Threats A strong economic environment, changing consumer tastes and preferences, a young demographic profile provide a strong backdrop for the Company's 33 expansion plan. The Company is pursuing higher growth path to capture the mind and market share in fast evolving industry. While faster growth means higher risks as well, the Company has well spread its risk by having retail outlets in both the value and life style segment, in multiple categories, across the country. The Company's business model is well balanced to capture the consumption of the customer at the same time managing the risk being well spread. The Company faces the risk from new players entering into the retail sector as well as from the existing player in unorganized sector. The organized retail market has very small share in the total retail market and penetration is still very low. The entry of more players at this stage will help to grow the market faster. The Company may face competition from new entrants who may go for higher promotion and markdown to capture the customers. However Company is well positioned to take this challenge with its brand position, scale of economy and national reach. The competition still will be in pockets of market and location-based since any new entrant has to rollout their 34 outlet one by one. 35 36 37 38 39 40 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. • 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. 41 Core Values 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 action. Adaptability: To be flexible and adaptable, to meet challenges. Flow: To respect and understand the universal laws of nature. 42 V 43 INTRODUCTION A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Retail organizations exhibit great variety and new forms keep emerging. There are store retailers, non store retailers, and retail organizations. Consumers today can shop for goods and services in a wide variety of stores. The best-known type of retailer is the department store. Japanese department stores such as Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature art galleries, cooking classes, and children’s playgrounds. A retailer is at the end of the distributive channel. He provides goods and service to the ultimate consumers. This he does through his small organization, with the help of a few personnel. In an individual retail store there is not much scope for organization except in the sense that the shopkeeper has to organize apportions his time and resources. The need for organization becomes essential as soon as he hires people o enters into partnership or takes the help of members of his family in running his store. A retailer deals in an assortment of goods to cater to the needs of consumers. His objective is to make maximum profit out of his enterprise. With that end 44 in view he has to pursue a policy to achieve his objective. This policy is called retailing mix. A retailing mix is the package of goods and services that store offers to the customers for sale. It is the combination of all efforts planned by the retailer and embodies the adjustment of the retail store to the market environment. Retailing mix, a communication mix and a distribution mix. The maximum satisfaction to the customers is achieved by a proper blend of all three. The success of the retail stores, therefore, depends on customers’ reaction to the retailing mix which influences the profits of the store, its volume of turnover, its share of the market, its image and status and finally its survival. 45 46 OBJECTIVE PRIMARY OBJECTIVE : To study the effectiveness of retailing mix in the store. SECONDARY OBJECTIVE : 1. To identify the performance of store operations. To understand the quality of services maintained in the store. To determine the performance of sales persons in the store. To understand the availability of products in the store. To identify the effectiveness of atmospherics in the store. 2. 3. 4. 5. 47 48 RESEARCH METHODOLOGY • Type of research Descriptive • Type of data Primary data • Data collection method Data is collected through structured questionnaire. • Sampling Convenient sampling • Sample size 250 • Data analysis technique Quantitative • Data analysis tool Bar charts,pie charts. 49 50 Question 1. In a month how many times you visit bigbazaar ? a) Ones b) twice c) Thrice d) more than thrice e) Occasionally 24 53 167 22 14 9.6% 21.2% 66.8% 8.8% 5.6% once twice thrice >thrice occasionally INTERPRETATION: 66.8 % people visit the store three times in a month and 21.2 % are visited twice, over all 88 % 51 of the people regularly visit big bazaar. Question 2: Your shopping experience in bigbazaar is always! a) Very bad b) bad c) Not good d) good e) Excellent 70 60 50 40 30 20 10 0 v.bad bad notgood good excellent 0 13 15 155 67 0 5.2 % 6 % 62 % 26.8 % INTERPRETATION: Maximum numbers of people has a better experience of shopping in big bazaar. 52 Question 3: Brands and products availability in bigbazaar is ! a) Very bad b) bad c) Not good d) good e) Excellent 0 10 42 103 95 0 4 % 16.8 % 41.2 % 38 % v.bad bad notgood good excellent INTERPRETATION: Over all 79.2 % of customers are satisfied by the availability of brands and products in big bazaar only 16.8 % are not satisfied. 53 Question4: Air-conditioning and music inside the store is! a) Very bad b) bad c) Not good d) good e) Excellent 0 10 62 140 38 0 4 % 24.8 % 56 % 15.2 % 60 50 40 30 20 10 0 v.bad bad notgood good excellent INTERPRETATION: Air conditioning and music inside the store is better according to the response of 71.2 % people in side the store, rest 28.8 % are not satisfied. 54 Question 5: Discounts and offers served in bigbazaar is! a) Very bad b) bad c) Not good d) good e) Excellent 5 17 12 182 34 2 % 6.8 % 4.8 % 72.8 % 13.6 % 80 70 60 50 40 30 20 10 0 v.bad bad notgood good excellent INTERPRETATION: Maximum number of respondent i.e., 86.4 % are satisfied by the discounts and offers served in big bazaar rest 13.6 % are not satisfied. 55 Question 6: Home delivery services of big bazaar is ! a) Very bad b) bad c) Not good d) good e) Excellent 72 142 36 0 0 24.8 % 56.8 % 14.4 % 0 0 60 50 40 30 20 10 0 v.bad bad notgood good excellent INTERPRETATION: 100 % respondent are not satisfied by the home delivery system of big bazaar. Question 7: Toilet and drinking water facility at bigbazaar is ! 56 a) Very bad b) bad c) Not good d) good e) Excellent excellent good notgood bad v.bad 0 20 10 22 203 15 0 4 % 8.8 % 81.2 % 6 % 0 % 40 60 80 100 INTERPRETATION: Maximum number of respondent (94 %) is not satisfied with the toilet and drinking water facility in the store. Question 8: Product display and signage in the store is! 57 a) Very bad b) bad c) Not good d) good e) Excellent 0 0 56 112 82 0 0 22.4 % 44.8 % 32.8 % 45 40 35 30 25 20 15 10 5 0 v.bad bad notgood good excellent INTERPRETATION: Product display and signage in the store is better according to 77.6 % of the respondent, rest 22.4 % are not satisfied with it. Question9: In offer days the shopping experience in the store is! 58 a) Very bad b) bad c) Not good d) good e) Excellent 0 0 25 133 92 0 0 10 % 53.2 % 36.8 % v.bad bad notgood good excellent INTERPRETATION: According to maximum number of respondent (90%) in offer days the shopping experience at big bazaar is better. Question10: Is it easy to move with the trolley in the store? 59 a) Yes b) No 215 35 86 % 14 % 90 80 70 60 50 40 30 20 10 0 Yes No INTERPRETATION: According to 86% of the respondents it is easy to move in the store with trolley. Question 11: How do you feel about sales persons and promoters ? 60 a) Very bad b) bad c) Not good d) good e) Excellent 0 0 26 187 37 0 0 10.4 % 74.8 % 14.8 % v.bad bad notgood good excellent INTERPRETATION: 89.6 % of the respondent are satisfied by the sales persons and promoters in the store. Question12: Are you satisfied with the billing facility at the store ? a) Yes 180 72 % 61 b) No 80 70 60 50 40 30 20 10 0 70 28 % YES NO INTERPRETATION: 72% of the respondents are satisfied by the billing facility in the store, rest 28 % are not satisfied. Question13 : The quality of the product served by big bazaar is ! a) Very bad 0 0 62 b) bad c) Not good d) good e) Excellent 60 50 40 30 20 10 0 v.bad bad 10 37 127 76 4 % 14.8 % 50.8 % 30.4 % notgood good excellent INTERPRETATION: 81.2 % of the respondents are satisfied with the quality of the products at big bazaar. Question 14: The cleanliness and hygiene maintained in the store is ! a) Very bad 0 0 63 b) bad c) Not good d) good e) Excellent 80 70 60 50 40 30 20 10 0 v.bad bad 0 18 189 43 0 7.2 % 75.6 % 17.2 % notgood good excellent INTERPRETATION: According to maximum number of respondent i.e., 92.8 % feels that cleanliness and hygiene maintained in the store is up to the mark. Question 15 : Have you ever been cheated or misguided in the store ? a) Yes 16 6.4 % Yes No 64 b) No 234 93.6 % INTERPRETATION: Only 6.4 % of the respondents are cheated in the store. FINDINGS 65 • Store performing well in attracting the customers. • Discounts and offers doing well in the store • Toilet and and drinking water facility is not up to the mark • In offer days the store management is good. • Air conditioning and hygiene is good . • Home delivery services are not good. • Product display and signage is good. • Quality in products is good. 66 67 RECOMMENDATIONS • Manage home delivery services properly. • There should be proper assortment of various product categories. • Proper signage should be there so that customer can locate the products easily. • Toilet and drinking water facility should be maintained regularly. • Proper training should be provided to sales person so that they can deal with the customer efficiently. • Various schemes and offers can be provided to them and attract new customers. • No. of cash counter needs to be increased keeping in view customer traffic intensity. 68 69 Limitations of the study Time limit is the major constraint. Some respondents refuse to co-operate. Some respondents replied half heartedly. Some respondents gave incomplete information. Some respondents gave dishonest answer. 70 BIBLIOGRAPHY 71 BOOK REFERRED: Research methodology (C.R. Kothari, C.B. Gupta ) Retailing Management (Swapna Pradhan) WEB SITES: www.wickepedia.com www.google.com www.pantaloon.com 72 PERSONAL INFORMATION Dear sir/ Madam, I Vishal singh student of School of management sciences, Varanasi conducting a survey on “Effectiveness of retailing mix in Big Bazaar’’ 73 This survey is a part of my partial fulfillment of PGDM (RM) course. Please provide relevant information by filling this questionnaire to make my survey more comprehensive. All details from your part will be kept confidential. Name:………………………………………………………….. b) Female Sex:a) Male Contact no.:- ………………………………………………………… QUESTIONNAIRE Q1. In a month how many times you visit bigbazaar ? a) Ones c) Thrice e) Occasionally Q2. Your shopping experience in bigbazaar is always! a) Very bad c) Not good e) Excellent Q3. Brands and products availability in bigbazaar is ! a) Very bad c) Not good e) Excellent b) bad d) good b) bad d) good b) twice d) more than thrice Q4. Air-conditioning and music inside the store is ! a) Very bad c) Not good e) Excellent Q5. Discounts and offers served in bigbazaar is ! a) Very bad b) bad b) bad d) good 74 c) Not good e) Excellent d) good Q6. Home delivery services of big bazaar is ! a) Very bad c) Not good e) Excellent Q7. Toilet and drinking water facility at bigbazaar is ! a) Very bad c) Not good e) Excellent Q8. Product display and signage in the store is ! a) Very bad c) Not good e) Excellent b) bad d) good b) bad d) good b) bad d) good Q9. In offer days the shopping experience in the store is! a) Very bad c) Not good e) Excellent Q10. Is it easy to move with the trolley in the store? a) Yes b) no b) bad d) good Q11. How do you feel about sales persons and promoters ? a) Very bad c) Not good b) bad d) good 75 e) Excellent Q12. Are you satisfied with the billing facility at the store ? a) Yes b) no Q13. The quality of the product served by big bazaar is ! a) Very bad c) Not good e) Excellent Q14. The cleanliness and hygiene maintained in the store is ! a) Very bad c) Not good e) Excellent Q15. Have you ever been cheated or misguided in the store ? a) Yes b) no b) bad d) good b) bad d) good • Thanking you for filling up this questionnaire 76 77 LOCATION Meerut 0ffice : Big Bazaar, PVS Mall, I-Block, Shastri Nagar, Meerut (U.P.) -250004 Ph.+91-121-4012100-113 Zonal Office : Panataloon Retail (India) Limited, Plot No. 82, Sector-32, Gurgaon 122001.India Ph +0124-4641000 ,Fax + 0124-4641001 www.pantaloon.com Regd. Office : Knowledge House, Shayam Nagar, Off. Jogeshwari-Vikhroli Link Road, Jogeshwari East, Mumbai 400060. India Ph +91 22 66442200, Fax +91 22 66442201 78 ORGANIZATION STRUCTURE STORE MANAGER ASSISTANT STORE MANAGER DEPARTMENT MANAGER ASSISTANT DEPARTMENT MANAGER TEAM LEADER SALES PERSONS Or PROMOTERS 79 COMPITATORS • VISHAL MEGA MART • SPENCER’S • SUBHIKSHA • SHOPPER’S STOP 80 THE STRATEGY Saving is key to the Indian middle class consumer. The store, which would be created, had to offer value to the consumer. Keeping this in mind, the concept of Big bazaar was created. In India, when a customer needs some thing for the home, a typical thought is to seek it from the bazaar. A bazaar is a place where a complete range of products is always available to the consumer. This is true across India. As the store would offer a large mix of products at a discounted price, the name Big bazaar was finalized. The idea was to re-create a complete bazaar, with a large product offering (at times modified to suit local needs) and to offer a good depth and width in terms of range. The mind to market for the first store was just six months. Price was the basic value proposition at Big bazaar. The Big bazaar outlets sold a variety of products at prices, which were 5 to 60 percent lower than the market price. The line “Isse sasta aur achha kahin nahin” emphaised this. 81 MANAGEMENT STYLE The organization structure for Big bazaar is flat in nature. For Big bazaar, the divisions are apparel, non apparel and the new business division, which includes gold, footwear and the shop-in-shops. For Food Bazaar, a separate teem has been created which again works independently. About 1,800 people work for Big bazaar directly. Support and ancillary services comprise another 400 people. A new trainee is put through a basic three day training program before going on the shop floor. Evaluation is done every six months. 82 83 84