1

“MARKETING STRATEGIES OF BIG

BAZAAR”

SUBMITTED TO

Ms.Swarna Bakshi
(MENTOR)

SUBMITTED BY

Anchit Gautam
BATCH:2007-2010
ROLL NUMBER:C-06
2

METHODOLOGY OF RESEARCH:

1) Type of Research: Exploratory Research

2) Time Frame: 2months

3) Tools used:

Primary – personal interview, tele-interview.

Secondary- MNES Journals, Internet, Magzines, Press Releases

etc.

SCOPE OF STUDY:
3

So far, it has been seen that retailing is a vital and involuntary

action performed by the living structure of the market economy

(as opposed to the case in a barter economy). In a barter

economy, bane; transactions take place between consumers

themselves. Consumers interact directly whereas in a centralized

market economy, transactions taking place at a larger scale

(both in terms of volume and variety) necessitate an interface

between the manufacturers and final consumers. Hence we

reinforce the fact that retailing is not a new deal. This industry is

extant as an interface between production and consumption,

from times immemorial, benefiting us - consumers or producers

in the various ways discussed above.

Our study concentrates on organized retailing, which consists of

shopping malls, super markets, chain stores, and like. In the last

few years a shift has occurred in India from individual retail

outlets owned separately and managed distinctively to

professionally managed retailing. This is an industry, which has

now started attracting better investments and talent. Things

changed primarily because of the rising expectations of Indian

consumers and the corporate responding quickly.

4

Today the industry (in India) seems to be functioning somewhere

between the accelerated development and maturity stages, with

high growth rates, intense competition and moderate profitability.

TABLE OF CONTENTS
5

CONTENTS PAGE NO.

 Certificate of Originality ii
 Signatory Page iii
 Thesis Approval Letter iv
 Synopsis v
 Acknowledgement vii
 Introduction to Retailing 1-2
 Retail Marketing Mix 3
 Importance of Studying Retailing 4-6
 Changing Customer Mindset 7
 The Industry Structure 8-11
 Company Profile 12-35
 Drivers of the Industry 36-39
 Field Study 40-50
 Research 0bjective 51
 Research Methodology 52
 Findings of The Survey 53-62
• Comparison Across Types of Retailers 59
• Establishing A Retail Store 61
• Analyzing Customers on Life-Style Concepts 62
 Conclusions 64-65
 Bibliography 66
 Annexure 67-68

INTRODUCTION TO RETAILING

Retailing consists of those business activities involved in the sale

of goods and services to consumers for their personal, family or

household use. It is the final stage in a channel of distribution,

which comprises all of the businesses and people involved in the

6

physical movement and transfer of ownership of goods and

services from producer to consumer.

Retailing involves

 Interpreting needs of the consumers

 Developing good assortments of merchandise

 Presenting them in an effective manner so that consumers

find it easy and attractive to buy.

Retailing differs from marketing in the sense that it refers to only

those activities, which are related to marketing goods and/or

services to final consumers for personal, family or household

use. Whereas marketing, according to American Marketing

Association, refers to ‘the process of planning and executing the

conception, pricing, promotion and distribution of ideas, goods

and services to create exchanges that satisfy individual and

organizational objectives.”

Organizational buyers purchase in order to perform a task or sell

a product effectively, efficiently and at a profit. They could be
industrial buyers or intermediary buyers. Industrial buyers are
those who purchase goods and services to be used in or to aid
manufacturing process. Intermediary buyers
7

are those (i.e. wholesalers and retailers) who buy merchandise

for resale. Retailers include street vendors, local supermarkets,

department stores, restaurants, hotels, barbershops, airlines and

even bike and car showrooms. Still retailing may or may not

involve the use of a physical location. Mail and telephone orders,

direct selling to consumers in their homes and offices and

vending machines - all fall within the purview of retailing. In

addition to it, retailing mayor may not involve a “retailer.’

Manufacturers, importers, non-profit firms and wholesalers are

acting as retailers when they sell goods and/or services to final

consumers.

Whatever the form of retailing, a retail marketing strategy defines

the execution of the marketing process and facilitation of

customer satisfaction.

This retail marketing strategy involves selecting a retail target

market (i.e. the carefully/exactly identified group of final

consumers that a retailer seeks to satisfy) and then

implementing the corresponding retail marketing mix (i.e. a

8

combination of product. price, promotion and distribution

strategies that will satisfy the retail target market). The elements

of the marketing mix encompass the facets shown in the table

below. The table depicts consumer service as the crux of the

whole activity.

RETAIL MARKETING MIX

Product Branding Price

Packaging Cost of goods

Product Design Business Expenses

Assortment Gross Margin

Services Profit

Promotion Distribution

Advertising Logistics

Personal Selling Store Location

9

Sales Promotion Site Evaluation

Public Relations Transportation

Visual Merchandising Storage of goods

Source: -Ron Hasty, James Reardon - Retail Management The implementation of

such a retail strategy mix benefits consumers and producers and yields economic

utility.

IMPORTANCE OF STUDYING RETAILING

by the living structure of the market economy (as opposed to the

case in a barter economy). In a barter economy, bane;

transactions take place between consumers themselves.

Consumers interact directly whereas in a centralized So far, it

has been seen that retailing is a vital and involuntary action

performed market economy, transactions taking place at a

larger scale (both in terms of volume and variety) necessitate an

interface between the manufacturers and final consumers.

Hence we reinforce the fact that retailing is not a new deal. This

industry is extant as an interface between production and

10

consumption, from times immemorial, benefiting us - consumers

or producers in the various ways discussed above.

Our study concentrates on organized retailing, which consists of

shopping malls, super markets, chain stores, and like. In the last

few years a shift has occurred in India from individual retail

outlets owned separately and managed distinctively to

professionally managed retailing. This is an industry, which has

now started attracting better investments and talent. Things

changed primarily because of the rising expectations of Indian

consumers and the corporate responding quickly.

Today the industry (in India) seems to be functioning somewhere

between the accelerated development and maturity stages, with

high growth rates, intense competition and moderate profitability.

In order to get an idea of the magnitude of the issue we are

dealing with, we look at the international scenario. During 1992,

the largest 100 retailers in the world generated over $1.1 trillion

in revenues.
11

Retailing is the second largest industry in the world, one of the

largest employers of the world and an index of economic growth.

In India there are about 5 million retail outlets varying in sizes

and nomenclatures. India has the highest number of retail outlets

per capita in the world but has the lowest retail space per capita

in the world (2 ft / person). Out of these 5 million outlets 96% are

smaller than 500 sq. ft. in area 3. There are about 3 million

outlets in India’s 3700 designated towns and more than 6,

00,000 villages. About 350 million people live, within one-minute

walk of these retail shops. According to retail census conducted

by market researcher ORG-MARK, Rs.4,79,568 crore worth of

products were sold through theses million retail outlets

Manufacturers owned and retail chain store are springing up in

urban areas to market consumer goods to the middle class in a

much similar style as malls around the globe. At present about

8% of the Indian population is employed in the retailing industry

as against 20% in USA. As India moves towards the service

oriented economy, a rise in this percentage is expected. The

number of the retail outlets is growing at about 8.5% annually in

12

the urban areas and in towns with population between 1, 00,000

to I million; the growth rate is about 4.5%.

According to Kurt Salmon Association, a global management

consulting firm, organized retailing seems all set to power ahead

from Rs. 5000 crore currently to about Rs.30,000 crore in next

live years. A. T. Kearney reports that organized retailing will

account for about 20% of the total $8 trillion retail market in India

in the next 5-7 years as against 1-2% today.

Consumer Spend by 2005 (in Rs. crore)

Unorganized Retailing 7, 08,836

Organized Retailing

Food and grocery 5,956

Non food 23,886

Source: Shah, Jindal “Shop at Leisure” Economic Times (4th

Feb 2000)
13

THE INDUSTRY STRUCTURE

Hence, commencing the study of retailing industry, we must first

look at its structure - what the retailing industry is made up of,

what it looks like. The structure of the retailing industry can be

studied from two perspectives - according to the form of

ownership of various retail units or according to the strategy mix

that various retailers adopt.

Based on the form of ownership, various types of retailers

comprising the retailing industry are described below:

1. An unaffiliated or independent retailer is one who owns

and operates only one retail outlet. A family mostly owns it

with high dependence on the owner, thus affecting long run

success and employee morale. He is supposed to have a

friendly personalized image and his offering reflects the

14

tastes and preferences of its owners and customers. Kirana

shops are very good examples of such retailers.

2. A chain retailer or corporate retail chain owns and

operates multiple retail outlets (store units) under common

ownership. Most chains have well defined management

philosophies, which tend to be solid overall strategies.

These contribute towards limiting the independence of the

local owners of the individual units who, in addition, lack

commitment also. bachoomal is a good e.g. of it.

There also exist associations of independent retailers,

which are formed in order to compete more effectively with

corporate chain stores. They enjoy benefits of a corporate

chain while still maintaining status of individual owners.

These associations could be formed with other retailers

(known as cc, operative chains), with sponsorship by a

wholesaler (known as voluntary chains) rather than by the

retailers themselves or by franchise agreements sponsored

15

by manufacturers or distributors (known as dealers) or by

service firms (known as franchisees).

3. A franchise system results from a contractual agreement

between a franchiser and a retail franchisee, thus allowing

the franchisee to conduct a given form of business under

an established name as per a particular business format in

return for an initial fee and a percentage of monthly gross

sales as royalty. It helps franchise to create national or

international presence quickly and with similar investments

(than required by the franchise alone for creating such a

presence independently).

4. A Leased Department (LD) is a department in a retail

store that is rented to an outside party. If the existing store is well
known, with a large number of steady customers, it becomes
easier for the LD to generate immediate sales. It operates in
categories on the fringe of the store’s major product lines and it
must be taken care that it’s not a parasite and does not live off
the traffic generated by other parts of the store. Thus goods or
services lines that it can offer may be restricted. Apart from this,
various requirements are imposed to ensure overall consistency
and co-ordination.

5. Vertical Marketing System (VMS) is comprised of all the

levels of business along a channel of distribution (Refer to

16

Fig.1). In an independent VMS, there are three levels of

independently owned businesses - manufacturers,

wholesalers and retailers. Such a system is most beneficial

if manufacturers and/or retailers are small, intensive

distribution is sought and customers are widely distributed.

In a partially integrated VMS, two independently owned

businesses (most likely a manufacturer and retailer) along

a channel perform all production and distribution functions

without the aid of the third i.e. wholesaler. This type of

system is most appropriate if manufacturers and retailers

are large. selective or exclusive distribution is sought and

existing wholesalers are too expensive or unavailable.

Through a fully integrated VMS, a single firm performs all

production and distribution functions without the aid of any

other firms. A fully integrated VMS enables a firm to have

total control over its strategy, to have direct contact with

final consumers, to have higher retail markups without

raising prices (by eliminating channel members), to be self

17

sufficient and not rely on others and to have exclusivity

over the goods and services offered.

Consumer Co-operatives are retail firms owned by their

respective customer members. In such co-operative

arrangements, groups of consumers invest in the co-

operative, receive stock certificates, elect officers, manage

operations and share the profits or savings that accrue.

6. Consumer Co-operatives come into existence with the

purpose (of some consumers) of operating stores as
well or better than traditional retailers, of getting
control over prices, of saving money by substituting
their own labors or of getting access to healthful,
environmentally safe plots, not available from
traditional stores
Based on the strategy mix that various retailers adopt, the
industry will comprise of fifteen types of retailers.
18

COMPANY PROFILE

GURGAON MALLS

Gone are the days when one had to rush from one shop to

another to pick up the things of their choice. A whole new world,

a paradise for shopper-holics and a place to be….malls in

Gurgaon have left no stone unturned to woo people of not only

the vicinity but also around. Sprawling at an alarming rate,

shopping malls in Gurgaon offer high-end entertainment and a

complete enthralling shopping experience. Revolutionizing the

standards of life of people of Gurgaon, shopping malls in

Gurgaon are giving a major boost to the retail industry, thus

transforming the entire map of the city right since their inception.

Giving a tough competition to the local market stores, Gurgaon

malls have given an eminent competitive edge to the city that

has been longing for some action so far. With apparent similarity

in design and modern-day amenities, Gurgaon shopping malls

are in no way inferior to shopping malls of the western world.

Fully loaded with nearly two dozen operational shopping malls

19

and some 140 in pipeline, the city is gearing ahead to soothe

shopping spree of the populace.

Foreseeing great future ahead, now more Gurgaon mall

developers are putting their best foot forward to gratify even the
minutest need of the shoppers. Whether it is a necessity of high-
end brands or the immediate need of theme specific products,
Gurgaon malls are becoming a perfect shopping destination to
visit. Being the ideal one stop shopping destinations,

Gurgaon shopping malls save upon lot of money and time. If this

progress steadily remains on the track for the next few years, the

entire retail bustle will definitely undergo a remarkable change.

Marketing reports on Retail industry

For enthusiast shoppers, there is a long streak of shopping malls

in Gurgaon to follow.

Right from Sahara Mall, DLF City Centre, MGF Metropolitan,

DLF Mega Mall to Vishal Mega Mart, there is a multitude of

alternatives to replete shopping spree. But in terms of regard and

recognition, Sahara Mall, Gurgaon Metropolitan Mall and Mega

Mall Gurgaon supersede all.

20

Spread over an area of 3.89 acre, Sahara Mall is fascinating the

visitors since March 2001. Fully decked with state-of-the-art

amenities, it enthralls shoppers with its huge range of latest

offerings.

Meanwhile Gurgaon’s Metropolitan Mall is a full air-conditioned

shopping location with the readability of seven screen multiplex,
exotic food joints and lots of other enticing amenities. Positioned
over the large area of 400,00 sq.ft, Gurgoan’s Metropolitan mall
has leading brands such as McDonald’s, PVR, Nike, Shoppers
Stop and Benetton. As far as the Mega Mall of Gurgaon is
related, it is one another perfect destination for a shopping
enthusiast to explore. Extended over 30,000 sq,ft. area, the
Mega Mall of Gurgaon enchants visitors with a three screen
multiplex and tenders customers with latest offerings from top
brand stores of Nakshatra, Reebok and a host of many others.

Retailing in India, with a few exceptions, mostly consists of small

family-owned shops that stock particular kinds of goods..

Needless to say retailing is scattered and disorganised.

Organised retailing first came to the South and is now spreading

all over India by the entry of a number of companies ? notably,

the Tatas with Trent, the Piramals with Crossroads the Rajan
21

Raheja group with Globus, the Goenkas with Foodworld and so

on.

Prior to the formal launch of the Piramals-owned Crossroads,

Mumbai?s first shopping multiplex, Piramal Holdings chairman

Ajay Piramal at a press meet said at Crossroads "there would be

something for everyone."

The implication clearly was that most people could do some

shopping at the mall. As things later turned out, maybe he meant

window-shopping! For, that is all most would-be shoppers could

do when Crossroads opened to the public.

At that time, the mall was abounding with exclusive names like

Shyam Ahuja, Ritu Beri, Rohit Bal and Swarovski ? of course, at

an astronomical price. Two years down the line, exclusivity at

Crossroads is being replaced by affordability. Now pedestrian

consumer durables shops selling Whirlpool refrigerators and

Videocon televisions rub shoulders with Swarovski?s outlets.

And the evolution is still on. The Trents and the Crossroads soon

proved with their high prices that, they were not for everyone and
22

only the well-heeled could afford to shop there. Subsequently,

when the climbdown started it became clear that this is not the

way it should be.

Retail industry experts say that in 2001, retailing entered a new

phase in India. Established retailers are now experimenting with

new formats in infrastructure, pricing and customer-care. The

biggest change in 2001, therefore, was on the price front.

Subhiksa in Chennai, Margin Free in Kerala, Bombay Bazaar in

Mumbai, RPG?s Giant in Hyderabad, Big Bazaar in Kolkata,

Hyderabad and Bangalore have one thing in common ? they all

price their products below MRP. Discount stores are slowly

arriving in India and industry insiders feel they will spearhead a

revolution in organised retailing.

Says Big Bazaar MD Kishore Biyani: "On the list of top retailers

in the world quite a few are discounters. Around 60 per cent of

the business abroad comes from this format. Incidentally, the

largest retailer in the world, Wal-Mart, is a discount store."

Perhaps no other format typifies the change so much as the

23

hypermarkets. A hypermarket is somewhat of a big discount

store that, ideally, stocks 60 per cent food and 40 per cent non-

food items.

Hypermarkets are designed to generate higher revenues and

delivery gains in terms of branding, merchandising, display,
variety and choice for partners,

consumers, retailers and the government alike. Owing to the

huge volume of sales generated at hypermarkets, overheads

stay low and they are able to function like discount stores.

Some call them the Godzillas of retailing, as they are several

times bigger in scope and scale than department stores. They

are usually located at the edge-of-the-town, and have an

extremely complex supply chain.

So far, most national-level retailers have stayed away from the

hypermarket format largely because of the complexity of

managing the supply chain and even a discount store like the 70-

store chain Subhiksha has stuck to food and provisions and

restricted itself to Tamil Nadu. Globally, hypermarkets account

for 60 per cent of the retail sales. However, a few established

24

retailers are setting up hypermarkets in India. For instance, the

Rs 6,000-crore RPG group of Food World, Health and Glow and

Music World fame opened its hypermarket by the name of Giant

early this year in Hyderabad.

Say company officials: "The response has been fantastic, and

we are growing month-on-month." The 50,000-sq ft hypermarket

is co-owned by Dairy Farm, a leading pan-Asian food and

drugstore retailer based in Hong Kong. RPG and Dairy Farm

plan to launch eight to 10 such stores in three years in cities like

Pune, Bangalore and Chennai.

Dairy Farms core strategy is to focus on supermarket,

hypermarket, convenience and drugstore operations, offering

consumers value for money through low-cost, efficient

distribution of high-quality fresh foods and fast-moving consumer

goods.

Another such hypermarket is Big Bazaar, set up in Hyderabad,

Kolkata and Bangalore by the Pantaloon group. It stocks close to

1.5 lakh items across 18 product categories and relies on

25

aggressive pricing to pull in customers as well as bludgeon

competition.

Says Biyani: "We are doing better than expected ? we get

around 22,000 clients each day with daily sales of Rs 25-30 lakh

from all the three stores." Big Bazaar invested a total of Rs 30

crore to have a discount store each in the three centres.

Biyani says Big Bazaar will open a store in Gurgaon by early

2002 and three stores in Mumbai, beginning March 2002. The

total investment will be Rs 25-30 crore and the turnover

expected from each store is around Rs 50 crore. RPG plans to

have 15 Giant stores in the next five years, entailing a total

investment of Rs 225 crore.

While southern and western India have seen a range of

hypermarkets such as the RPG groups Giant in Hyderabad,

Pantaloon Retails Big Bazaar among others, the north ?

particularly Delhi ? has been devoid of such stores.

Consumers here rely on a network of local mom-and-pop stores

for daily shopping. These increasingly offer the convenience of

26

tele-shopping as well. In a recent development, two New Delhi-

based retail chains and Ansal Housing and Construction decided

to jointly set up six hypermarkets in New Delhi.

The retail chains include Home Store (India), a retailer of home

products and accessories, and Lifespring, owner of a chain of

health and beauty product stores in Delhi. The three will invest

more than Rs 50 crore to set up six hypermarkets across Delhi

by year 2003. To be called Metro Sabka Bazar (Everybodys

Market), each store will be spread over 50,000 sq ft.

According to Arif Sheikh, managing director The Home Store,

(THS), The Home Store plans to follow a business plan where it

will buy out the real estate for all the proposed hypermarkets and

will later rent out a major portion and also take a cut in margins.

THS has the retailing expertise and will need to sell at

competitive prices to keep out expenses and overheads low.

The company estimates that each hypermarket will involve an

investment of Rs 50 crore. The reason for THSs diversification

clearly is to expand its customer base, which is currently limited

27

to a niche audience. The Home Store already operates 17

outlets in 10 Indian cities, although none of the stores are

hypermarkets.

New retail brand that entered India in year 2001 was the ?8-

billion Marks and Spencer (M&S) that opened outlets in Mumbai

and Delhi. M&S, known for its discounted pricing in countries like

the UK, has ventured into India through the franchisee route in a

tie-up with Planet Sport. Unlike in other countries M&S is going

in for fancy pricing and may find the going tough, say retail

industry experts.

Hypermarkets, thus, are clearly a volumes game and in India,

with its value-for-money conscious public, if managed well they

could change the retail scene for good.

28

Retailers Rush in to Grab the Market

The Indian retail sector has suddenly become active. While

attention had been focused on the mall boom close to 220 malls

will be operational by the end of 2008 Reliance Industries led by

Mukesh Ambani has launched its retail operations, branded

Reliance Retail in the country by opening outlets in Hyderabad,

that sell fruits vegetables and grocery, while other retailers

(Indian and global) are poised to spring into action.

Industry watchers are taken aback by the speed and ease with

which Reliance has inaugurated its retail operations. Says Arvind

Singhal, head of retail consultancy, KSA Technopak: "Nowhere

in the world has a project started on such a scale it has taken

just 15 months from planning to execution." (See: RIL launches

first Reliance Fresh retail store in Hyderabad)

Technopak anticipates that Reliance's entry into retail will spur

others into action and the top 10 players in the modern retail

trade are likely to pump in $18-20 billion in five years to generate

as much as $50-60 billion in revenue by 2011. This investment

29

will be made in the top 150 cities, though impact would be visible

in at least the top 500 if not more.

Reliance will however, soon encounter competition from large

domestic players like ITC, the Adity Birla Group, telecom

maverick Sunil Mittal's Bharti group, RP Goenka's RPG

Enterprises and the Ruia's Essar Group, all of

whom are finalising their retail plans while global players like

Carrefour, Wal-Mart and Tesco will inevitably move in either with

franchised, cash and carry or plain retail models. German retailer

Metro already operates a cash and carry store in Bangalore and

is scheduled to open outlets in Hyderabad soon.

Unconfirmed reports say the Aditya Birla Group may spend

Rs15,000 crore ($3.3 billion) to set up 6,000 outlets in three

years.

Sunil Mittal, chairman of Bharti Enterprises is planning a tie up

for his FieldFresh Foods Pvt Ltd with the UK-based Tesco to set

up chain stores in India. The Aditya Birla Group is expected to

open its first store by the middle of next year.

30

Wal-Mart's recent moves indicate that it is no longer willing to

wait for the Indian government to drag its feet on the issue of FDI

in retail, and has initiated talks with Indian companies for

franchised or cash and carry operations. As a first step towards

setting up a presence in India, Wal-Mart has appointed Raj Jain

(former CEO of Whirlpool of India) as the CEO of its proposed

Indian operations.

The US-based retail chain currently has a set-up in Bangalore to

source products for its international retail operations. Jain,

currently undergoing training in Shanghai, has been hired

specifically to spearhead the retail company's entry into India.

Earlier Wal-Mart had set up a project office in Delhi from where it

was said to be working on various entry strategies. Wal-Mart is

also believed to be building a team in India, which includes the

head of finance, marketing and legal affairs.

Wal-Mart is said to be extremely concerned about the impact

that Reliance Retail will make on the groceries and fresh foods

market, recognized globally as the life blood of organised retail

31

the world over. Until now, Indian retailers have tended to

minimize their presence in this segment mainly due to high

investments required.

Though Spencer's, FoodBazaar, Nilgiri Dairy Farms, Dairy

Farms are present in the fresh food segment, theirs is a token

presence and not a competitive threat.

Against this Mukesh Ambani has announced a Rs25, 000-crore

investment for its Reliance Fresh initiative and Reliance Select.

(See: RIL to invest Rs25,000 crore in retail) investment in its

backroom and supply chain and cold chain is also said to be

huge. For fresh produce it plans to source fruits and vegetables

directly from farmers eliminating middlemen and for groceries it

has tied up with FMCG manufacturers to source stocks directly

from company factories.

Sources say the large FMCG players like HLL, ITC, Dabur and

Marico are putting in place systems to service Reliance as the off

take of consumer goods from HLL is expected to be large.

32

The world's second largest retail chain, the €74.5-billion

Carrefour is also set to enter India along with Dubai-based

Landmark group which operates the Lifestyle chain of stores in

India.

According to reports, Carrefour's plans include opening 200

hypermarkets throughout India in the next 10 years. Incidentally,

Carrefour was the first international retailer to set up shop in Asia

in 1989 in Taiwan, Indonesia, Malaysia, Thailand and China.

Carrefour had maintained a procurement office in Gurgaon near

Delhi from 2000 to 2004 from where it sourced food products

from India through international distribution agents. In 2004 it

recalled its executives after postponing plans to set up shop in

India due to the lack of clarity on foreign direct investment (FDI)

in the retail sector. Carrefour operates 7,000 stores in 29

countries worldwide and has 47.8 per cent of the group's sales

originating from France. The remaining sales come from its

hypermarket store format which the group pioneered.

33

Carrefour India is understood to be exploring formats like the

cash-and-carry and franchisee model to facilitate its entry.

German retailer Metro is also following the cash-and-carry model

in India and has set up two distribution centres in Bangalore and

is in the process of setting up more in Hyderabad and Kolkata.

A recent study by real estate services provider Frank Knight

India revealed that the Indian retail sector is worth $210 billion

and is expected to grow at between five and seven per cent per

year. Organised retail represents just three per cent of the

overall industry, but is growing at 30 per cent per year.

PANTALOON (BIG BAZAR)

34

Pantaloon Retail is looking at launching 60 Big Bazaar new

outlets in the next eight months and is targeting to open 100 Big

Bazaars this year. The company currently has 40 outlets with 10

Big Bazaars in the south. It is planning to invest an average of

Rs15 crore on each outlet. The size of the outlets ranges from

40,000 square feet to 1.7 lakh square feet. The company has

invested about Rs16 crore for setting up the new retail outlet in

Hyderabad, which spreads over 52,000 square feet. With the

new expansion plans in place, the company is expecting over 80

pc increase in revenues in the next financial year

Big Bazaar
35

Type Subsidiary of Pantaloon Group

Founded 2001

Headquarters Mumbai, India

Industry Retail

Parent Pantaloon Group

Owner Kishore Biyani

Slogan Is se sasta aur accha kahi nahin

Website http://www.pantaloon.com/bigbazaar.htm

Big Bazaar is a chain of shopping malls in India currently

with 29 outlets, owned by the Pantaloon Group. It works on
same the economy model as Wal-Mart and has had
considerable success in many Indian cities and small towns.
The idea was pioneered by entrepreneur Kishore Biyani, the
head of Pantaloon Retail India Ltd.

Pantaloon Retail (India) Limited, is India's leading retail

company with presence across multiple lines of businesses.

The company owns and manages multiple retail formats

that cater to a wide cross-section of the Indian society and

is able to capture almost the entire consumption basket of

the Indian consumer. Headquartered in Mumbai (Bombay),

the company operates through 4 million square feet of retail

36

space, has over 140 stores across 32 cities in India and

employs over 14,000 people. The company registered a

turnover of Rs 2019 crore for FY 2005-06.

Pantaloon Retail forayed into modern retail in 1997 with the

launching of fashion retail chain, Pantaloons in Kolkata. In

2001, it launched Big Bazaar, a hypermarket chain that

combines the look and feel of Indian bazaars, with aspects

of modern retail, like choice, convenience and hygiene. This

was followed by Food Bazaar, food and grocery chain and

launch Central, a first of its kind seamless mall located in

the heart of major Indian cities. Some of it's other formats

include, Collection i (home improvement products), E-Zone

(consumer electronics), Depot (books, music, gifts and

stationary), aLL (fashion apparel for plus-size individuals),

Shoe Factory (footwear) and Blue Sky (fashion

accessories). It has recently launched its retailing venture,

futurebazaar.com.
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The group's subsidiary companies include, Home Solutions

Retail India Ltd, Pantaloon Industries Ltd, Galaxy

Entertainment and Indus League Clothing. The group also

has joint venture companies with a number of partners

including French retailer Etam group, Lee Cooper, Manipal

Healthcare, Talwalkar's, Gini & Jony and Liberty Shoes.

Planet Retail, a group company owns the franchisee of

international brands like Marks & Spencer, Debenhams,

Next and Guess in India.

Future Group

Pantaloon Retail is the flagship enterprise of the Future

Group, which is positioned to cater to the entire Indian

consumption space. The Future Group operates through six

verticals: Future Retail (encompassing all retail businesses),

Future Capital (financial products and services), Future

Brands (management of all brands owned or managed by

group companies), Future Space (management of retail real

38

estate), Future Logistics (management of supply chain and

distribution) and Future Media (development and

management of retail media).

Future Capital Holdings, the group's financial arm, focuses

on asset management and consumer finance. It manages

two real estate investment funds (Horizon and Kshitij) and

consumer-related private equity fund, Indivision. It also

plans to get into insurance, consumer credit and other

consumer-related financial products and services in the

near future.

Future Group's vision is to, "Deliver Everything, Everywhere,

Every time to Every Indian Consumer in the most profitable
manner." One of the core values at Future Group is,
'Indianess' and its corporate credo is – Rewrite rules, Retain
values.

CORPORATE STATEMENTS

Future Group Manifesto

39

“Future” – the word which signifies optimism, growth,

achievement, strength, beauty, rewards and perfection.

Future encourages to explore areas yet unexplored, write

rules yet unwritten; create new opportunities and new

successes. To strive for a glorious future brings to Company

strength, ability to learn, unlearn and re-learn, ability to

evolve.

• 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, it effect socio-economic

development for the customers, employees, shareholders,

associates and partners.

• Their customers will not just get what they need, but

also get them where, how and when they need.

• They will not just post satisfactory results, it will write

success stories.
40

• They will not just operate efficiently in the Indian

economy, will evolve it.

• They will not just spot trends, but will set trends by

marrying its 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. The Company
shall keep relearning and in this process, do just one thing.

Group Vision

Future Group shall deliver Everything, Everywhere, Every

time for Every Indian Consumer in the most profitable

manner.

Group Mission

• The Company 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.

41

• They will be the trendsetters in evolving delivery

formats, creating retail realty, making consumption

affordable for all customer segments – for classes and for

masses.

• They shall infuse Indian brands with confidence and

renewed ambition.

• They shall be efficient, cost- conscious and committed

to quality in whatever we do.

• They shall ensure that their positive attitude, sincerity,

humility and united determination shall be the driving force

to make Company successful.

Core Values

• Indianness: confidence in ourselves.

• Leadership: to be a leader, both in thought and

business.
42

• 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.
43

Major Milestones

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 John Miller – Formal shirt brand launched.

1997 Pantaloons – India’s family store launched in Kolkata.

2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first
hypermarket chain launched.

2002 Food Bazaar, the supermarket chain is launched.

2004 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - 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
44

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
General.

Major Achievements of Pantaloon Retail

• Chosen as International Retailer for the Year 2007
• Chosen as Emerging Market Retailer of the Year 2007
• Best Employers in India (Rank 14th) in the Hewitt Best
Employers 2007 survey.
• Best Managed Company in India (Mid-cap) for the year
2006.
• Won Images Retail Awards 2006 for Best Value Retail
Store, Best Retail Destination, and Best Food & Grocery
Store

JOINT VENTURES COMPANIES

45

Planet Retail Holdings Ltd.

The group is a joint venture partner in Planet Retail

Holdings Ltd., which operates sports, lifestyle and leisure

retail chain. It also owns the franchisee and distribution

rights of brands like Marks & Spencer, Guess, Debenhams

and Puma in India.

Footmart Retail

Footmart Retail is a joint venture with Liberty Shoes and is

engaged in the retailing of footwear products in India.

GJ Future Fashions

GJ Future Fashions is a joint venture with kids apparel

manufacturer - Gini & Jony.

CapitaLand Retail India

The group is a joint venture partner in CapitaLand Retail

India, along with Singapore-based CapitaLand Limited. The

company provides retail management services to retail

46

properties owned or managed by various group companies

and investment funds.

ETAM Future Fashions India Pvt. Ltd.

ETAM Future Fashions India Pvt. Ltd., is a joint venture with

French-retailer, ETAM and the group. The company is

involved in manufacturing and distribution of women’s

fashion and lingerie products.

AWARDS & RECOGNITION

47

Kishore Biyani conferred 'international retailer of the

year' award 18 January 2007
Apex US retail body, National Retail Federation (NRF), has

conferred 'international retailer of the year award' on Kishore

Biyani, managing director, Pantaloon Retail India Ltd.

The award was presented to Biyani at NRF's 96th annual

convention and expo on 16 January in New York.

NRF is the world's largest retail trade association with a

membership that comprises all retail formats and channels of

distribution and its award is traditionally given to companies

that achieve an international reputation for creative genius,

inspirational leadership and distinguished service to the retail

industry.

Previous recipients of this award are Metro AG (Germany),

Carrefour (France), Ito Tokada Group (Japan), Zara (Spain)

and Boticario (Brazil).

Accepting the award Biyani said, "It would have been more

appropriate if we had got the award after global retailers

48

have stepped into India. We are in a no-competition scenario

currently but we excel in what we do to delight our Indian

consumers."

Biyani also said, "We can take a person out of India but not

India out of a person. We have a deep understanding of

Indian consumers and we offer everything they need every

time, everywhere through every format of retailing".

According to Farooq Kathwari, chairman, NRF, "Pantaloon

Retail India Ltd is the unanimous choice of the jury for the

International Retailer of the Year Award this year. We

applaud the impressive growth of the organisation whose

turnover is poised to become $6 billion by 2010".

The other awardees were Reed Hastings, founder chairman

and CEO of Netflix, who received NRF's innovator of the

year award and Millard Drexler, chairman and CEO, J Crew

Group, Inc, who received NRF's gold medal for retailing

excellence.
49

2006

National Retail Federation

International Retailer of the Year - Pantaloon Retail (India)

Ltd. The National Retail Federation is the largest retail trade
association with over 1.4 million member organisations in the
US and across the world. Some of the past recipients of this
award include Metro AG, Carrefour, Ito-Yokado, Zara and
Boticario.

Retail Asia, Retail Asia Pacific Top 500 Awards

International Retailer of the Year - Pantaloon Retail (India)

Ltd. The National Retail Federation is the largest retail trade

association with over 1.4 million member organisations in the

US and across the world. Some of the past recipients of this

award include Metro AG, Carrefour, Ito-Yokado, Zara and

Boticario.

Images Retail Awards 2006

• Mr. Kishore Biyani – Retail Face of the year

50

• Big Bazaar – Best Value Retail Store

• Big Bazaar – Best Retail Destination

• Food Bazaar – Best Food and Grocery Store

Readers Digest Platinum Trusted Brand Award

• Big Bazaar - Earning a trusted Place in the everyday

lives of consumers

CNBC Awaaz Consumer Awards

• Big Bazaar: Most preferred store

Retail Asia Publishing

PRIL – Numero Uno Retail Organisation of India

2005

Readers Digest and Awaaz consumer Award

Big Bazaar - Most preferred, large, Food and Grocery store

• Readers Digest Platinum Trusted Brand Award

51

• Big Bazaar - Earning a trusted Place in the everyday

lives of consumers

Images Retail Awards 2005

• PRIL – Most admired retailer of the year

• Food Bazaar - Retailer of the year (food and grocery)

• Big Bazaar – Retailer of the year (value retailing)

• Central – Retail launch of the year

Business Today selected PRIL among:

• Top 20 companies in India to watch in 2005

• India’s most investor-friendly companies in the top 75

• India’s biggest wealth creators in the top 100

2004

Images Retail Awards 2004

52

• PRIL – Most admired retailer of the year

• Food Bazaar - Retailer of the year (food and grocery)

• Big Bazaar – Retailer of the year (value retailing)

• Central – Retail launch of the year

Reid & Taylor and DLF Awards

PRIL – Retailer of the year

2003
Indian Express Award

PRIL- Marketing excellence and excellence in brand

building

RESEARCH 0BJECTIVE
53

The objective of the study is:-

1. To identify change in the behavior that is preference of

the small retail store over the supermarket or vice-

versa.

2. To identify the retailers point of view regarding change

in sales volume.

3. Finally to relate the above findings so as to get a

comprehensive picture of where the small retail store is

today and where it is headed.

RESEARCH METHODOLOGY
54

The methodology adopted for collection of data is well as the

various application policies of the retailers.
Source of data:-
1. Primary data sources comprised of :-

a. Books

b. Newspapers

c. Magazines

d. Periodicals & through internet

CONCLUSIONS
55

The growing and changing trends in retail industry has

changed the whole customer perception and their buying
habits. The fast trends of retailing from unorganized to
organize and the profit emerging from the business has
promoted many of the bigger players to enter in the
market and many of them ready to enter.
Consumer of India the half of the population still lives below

the poverty line so there are the many factors which effect

the growth of these kinds of super-stores, like, purchasing

power, buying habits and life styles of the people.

The market is flooded with products - branded and

unbranded. The organized retail chains, display all the

products and the most attractive product catches the

customer attention. Gone are the days of - customer loyalty

with increasing number of products of similar quality hitting

the market? Differentiation plays the lead role. There is a

close relation between the growth of brands and the growth

of the organized retailing. Companies selling branded

products prefer to have big and organized retail outlets such

56

as supermarkets where there can be differentiated from

unbranded products.

The customers of the 21st century would expect to pick

his/her own products form an array of choices rather than

asking the local kirana wall’s to deliver a list of monthly

groceries. Thus, the way of distribution of products has

gained importance in the past decade.

Still the customer perception is positive about the

changing trend most of the people prefer to shape at
superstores and agree that the trends should be changed
from unorganized retailing to organized retailing.
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BIBLOGRAPHY

For the successful completion of the project work, the project

work the following were the, journals, websites that were
consulted & taken help of:-

JOURNALS:-
• Business today

• Business world

• India today

WEBSITES:-
• www.google.com

• www.vishalmegamart.com

NEWSPAPER:-
• Time of India

• Economic Times

• Daynik Jagran.
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