In
Enrollment No.
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ACKNOWLEDGMENT
I hereby take the opportunity to express my profound sense of gratitude and reverence to
all those who have helped and encouraged me towards the successful completion of the
project.
I would like to thank all the Faculty Members of JIMS for guiding me and supporting me
in the completion of this project from time to time.
Last but not the least my greatest gratitude to the Almighty and my
parents without their support this dream would have remained a
dream.
AYUSH JHAWAR
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Executive summary
As supply chain is a very big area to cover in just sixty days, so I formulate a
complete supply chain of Big Bazaar and divide my work in store ware house, floor, and
central ware house. Firstly I spend some time on floor and see the customer buying
behaviour, customer preference, customer need etc.,the visualisation part done by the
V.M. and floor team arrangement of the material on the floor to attract the customers.
In current business scenario S.C.M. is very big and major problem for retail
industry. Second part of my job was to work in store ware house where I have seen the
complete receiving of the material and documentation process by following all the rules
of S.O.P. In the store ware house I have seen the in warding of the material on SAP with
different commands, how to make G.R.N. of the material and post all the documents to
the commercial office. Here I have seen how to make S.T.O.
Third part of my job was to work with Central Ware House team. In ware house I
try to understand whole process of supply chain and logistics, their way of working. Here
I have seen in warding, racking, out warding, segregation and maintenance of the stock
physically as well as in SAP.
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of these parameters preferred by the customers. Big Bazaar is on the right track by using
these parameters for being customer oriented.
After the above studies and insight of the workings a few hindrances where
spotted but on an overall we can say that the store is quite well maintained.
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
Retailing is the distribution channel function where on organisation buys products from
supplying firms and manufacture the product themselves and then sell these directly to
consumers. Retailer is also reseller-obtain the product from one party in order to sell to
other. The term "Retailing" refers to any activity that involves a sale to an individual
customer. In India, the unorganized retailing sector comprises of 96.5% while that of
organized sector just 3.5% that is mainly in major metropolitan and urban areas. Indian
retailing traditionally dominated by a small family run "Kirana" store. Retailing in India
is the second largest untapped market after China. Professional management and strong
customer focus characterize organized retailing.
Concept- To woo the customer to the store retailers are providing a wide range of
product, Quality, and value for money, apart from creating a memorable shopping
experience. Organized retailing has made a considerable headway in product like food &
groceries, clothing books, and music.
1. Customer satisfaction
3. Product presentation
4. Traffic building
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1. Westside (Tata)
2. Pantaloon
3. Big Bazaar
4. food bazaar(PRIL)
5. Food world(RPG)
7. Reliance fresh
9. Life style
10. Ebony
13. Subhiksha
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3. Department stores: These are the general merchandise retailers offering various
kinds of quality products and services. These do not offer full service category products
and some carry a selective product line. K Raheja's Shoppers Stop is a good example of
department stores. Other examples are Lifestyle and Westside. These stores have further
categories, such as home and décor, clothing, groceries, toys, etc.
4. Malls: These are the largest form of retail formats. They provide an ideal
shopping experience by providing a mix of all kinds of products and services, food and
entertainment under one roof. Examples are Sahara Mall, TDI Mall in Delhi.
5. Specialty Stores: The retail chains, which deal in specific categories and provide
deep assortment in them are specialty stores. Examples are RPG's Music World,
Mumbai's bookstore Crossword, etc.
6. Discount stores: These are the stores or factory outlets that provide discount on
the MRP items. They focus on mass selling and reaching economies of scale or selling
the stock left after the season is over.
9. E-tailers: These are retailers that provide online facility of buying and selling
products and services via Internet. They provide a picture and description of the product.
A lot of such retailers are booming in the industry, as this method provides convenience
and a wide variety for customer. But it does not provide a feel of the product and is
sometimes not authentic. Examples are Amazon.com, eBay.com, etc.
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10. Vending: Smaller products such as beverages, snacks are some the items that can
be bought through vending machines. At present, it is not very common in India.
To have a clear picture and understanding of any matter it is very important to approach it
from the grass root level therefore to understand retail in depth it becomes important to
deal first hand with the customers to whom you shall be catering to. Moreover the retail
store is the final destination of all retail operations, so it again becomes important to
know the handling, operations and various dealings at the basic store level. The
employees, from the sales staff to the store manager, need to be highly customer driven
and have the efficiency to meet the ever rising customer expectations. How can
employees meet these rising customer expectations and alongside maintain efficiency of
resources. The employees need to be well informed about stock availability, reorder
points, latest trends, customer expectations, competitor strategies etc.
To meet such stiff competition retailers need to follow a hybrid approach which involves
both standardization and customization of processes and services respectively as and
when the need arises.
The retail staff needs to be highly customer driven and their efforts should not be aimed
at making a sale but at earning a loyal customer for it is rightly said that 80% of the sale
comes from 20% of the customers.
Retail is all about size. If you look at retail companies, margins are thin. So it is important
to grow to such a size that even if margins improve by ten basis points, the impact on the
bottom-line is large.
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Therefore the processes need to be consumer friendly and apt according to the cost
reduction and revenue generation policies of the company. Though the consumer
behaviour is something that is highly unpredictable it needs to be motivated continuously
for the benefit of the organization and definitely the customer too.
“Having a good time” attitude driving growth of pubs, clubs, coffee bars, fast
food joints etc.
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Changing retail scenario-
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COMPANY PROFILE
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 1,000 stores across 61 cities in India and employs over 30,000
people.
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.
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
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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
Partner companies
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CapitaLand Retail India
ETAM Future Fashions India Pvt. Ltd.
Lines of Business
The company is present across several lines of business which have various formats
(stores) operational under it. These include:
• Leisure & Entertainment - Bowling Co., F123 Wellness - Star & Sitara, Tulsi
BIG BAZAAR
Big Bazaar is a hypermarket consists of extremely large self-service retail outlet with a
warehouse appearance, currently with 100 outlets in India. It is owned by the Pantaloon
Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart and
has considerable success in many Indian cities and small towns. The idea was pioneered
by entrepreneur Kishore Biyani the CEO of Future Group. Currently Big Bazaar stores
are located only in India. It is the biggest and the fastest growing chain of hypermarket
stores and aims at being 250 stores by the end of year 2010.
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Tag line-Is se sasta aur achha kahin nahi
Different categories-
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Big Bazaar’s Commitment
Our commitment is to deliver sustained growth, through empowered people, acting with
responsibility and building trust with customers. Here’s I am explaining what this means:
Empowered People means we have the freedom to act and think in ways that you feel
will get the job done, while being consistent with the processes that ensure proper
governance and being mindful of the rest of the company’s needs.
Responsibility and Trust form the foundation for healthy growth. It’s about earning the
confidence that other people place in us as individuals and as a company. Our
responsibility means we take personal and corporate ownership for all we do, to be good
stewards of the resources entrusted to us. We build trust between ourselves and customers
by talking not by mouth but by our superior customer service and being committed to
succeeding together.
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1.4 COMPETITION INFORMATION
• Westside (Tata)
• Pantaloon
• Big Bazaar
• food bazaar(PRIL)
• Food world(RPG)
• Reliance fresh
• Life style
• Ebony
• Hyper city
• Honey well
• Subhiksha
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CHAPTER 2
OBJECTIVE AND
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
2.1 Significance
2.3 Objective
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2.5 Methodology
Research Design
A research design is a frame work or blue print for conducting the business research
project. It details the procedures necessary for obtaining the information needed to
structure and solve business research problem. In this project we have conducted
exploratory and descriptive research to ‘To analyze/compare the buying preference of
customers towards three main players in retail i.e. Big Bazaar, Reliance fresh and vishal
mega mart’.
Exploratory Research:
It is a type of research which has its primary objective the provision of insight into and
comprehension of the problem situation confronting the researcher. We have done
secondary research as the part of Exploratory Research.
Descriptive research
A type of conclusive research that has its major objective to describe something, usually
business characteristics or functions. Major methods employed in descriptive research are
survey and observation of that we have used survey using questionnaires.
Sample
A sub group of the elements of the population selected for participation in the study.
Sample characteristics called statistics are then used to make inferences about the
population parameters. We have chosen sample of people out side the retail outlets in
three different locations of the Indore.
Define the target population- The collection of elements or objects that possesses the
information sought by the research and about which inferences are to be made. So our
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target population are people ready to buy monthly needed items from the retail outlet
according to there preference of parameters.
Sample size
We have taken sample of 100 Respondents out side the retail outlets ready to buy form
there.
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CHAPTER 3
CONCEPTUAL
DISCUSSION
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Supply chain process -
SUPP
LIER RETAIL
CUSTO
MER
ER
MANUFACTURER
TRANSPO
RTER
As we know supply chain is the back bone of any industry. A supply chain consists of all
parties involved directly or indirectly in fulfilling a customer request. The supply chain
includes not only the manufacturer or supplier part but also transporter, ware house and
customer part. In retail especially supply chain begins with the customer and his or her
need for the product. In retail supply chain involved in receiving and filling a customer
request. As we know customer is an integral part of the supply chain.In fact the primary
part of any supply chain is to satisfy customer needs and in precess generate profit for
itselfThe term supply chain conjures u[ images of product or supply moving from to
manufacturer to distributer to retailer to customer along a chain.This is certainly part of
supply chain,but it is also important to visualize information,funds and products flows
along both directions of this chain.
In reality a manufacturer may receive material from several supplier and then supply
several distributers.A supply chain ,may includes a variety of stages;
1. Customer
2. Retailer
3. Wholesaler/distributer
4. Manufacturer
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Supply chain process- Supplier
Procurement
cycle Manufacturer
Manufacturing cycle
Distributor
Replenishment
cycle
Retailer
Customer Customer
order cycle
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Supply Chain Management
Supply Chain Management covers the planning and management of all activities
involved in sourcing, procurement, conversion, logistics and Distribution. It also
includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers.
Objective of every supply chain should be to maximize the overall value generated. The
value a supply chain generates is the difference between what the final product is worth
to the customer and the costs the supply chain incurs in filling the customer’s request.
In the Big Bazaar supply chain activities belong to one of three macro processes;
1. C.R.M.-All processes that focus on interface between the firm and its customers
a. Market
b. Price
c. sell
a. Strategic planning
b. Demand planning
c. Supply planning
d. Fulfilment
e. Field service
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3. S.R.M.-All processes that focus on the interface between the firm and its
suppliers.
a. Source
b. Negotiate
c. Buy
d. Design collaboration
e. Supply collaboration
In the supply chain of any retailer the supplier does not play any role. Supply chain
design, planning and operation decisions play a significant role in the success or failure
of Big Bazaar. From its beginning, the Big Bazaar invested heavily in transportation and
information infrastructure to facilitate the effective flow of goods and information. Big
Bazaar designed its supply chain with clusters of stores around distribution centres to
facilitate frequent replenishment at its retail stores in a cost effective manner. Frequent
replenishment allows stores to match supply and demand more effectively than the
competition.
Dewas naka
Compare the material with the Stamp on P.O.D. copy and return to the
documents, stamp the documents, write transporter
information with signature of the
security and then unload the truck
Transfer of the material to the store Pre in- warding by scanning the material
ware house against the inbound no. by E.A.N. and
article no.
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Maintain in ward register by putting all Segregation of the material (M.C. wise
the required information and category wise)
Send the stock to the flour as per the Racking of the material by giving
requirement location to the rack as well as to the box
(for the maintenance of the W.M.S.
sheet)
Send all the documents to the Out warding of the material from central
commercial office for the preparation of ware house to the store, after receiving
MIRO sheet (send to head office for S.T.O. from the store.
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1) Raising a purchase order to vendor-
Big Bazaar category maintains the flow of material from vendor to store or from
vendor to ware house to store. Category does not receive any demand order from store or
ware house. Actually category keeps the record of movement of flow of material from
ware house to store & also per day & per week sale on the flour. On the basis of this data
& also from market research, category estimates the demand of customer & makes
purchase order to the vendor.
When we open a store we call different vendors then after negotiation with vendor
on prices & other condition & schemes we provides them, vendor registration no. so
purchase order is made against this vendor no.& then vendor give us information about
no. of items presents in their manufacturing ware house for supply and we register those
items by vender code.
Mapping
After receiving purchase order from the category, vendor delivers the material to
the given location (store or ware house) by the help of transporter hired by the vendor
(transportation at vendor’s expense) with the invoice copy and purchase order copy.
1. Consignee copy
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2. P.O.D. copy
3. Purchase order
4. Invoice copy
5. A.S.N. copy
6. Quality check
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Conditions-
Packing guidelines-
Category makes purchase order for the store directly in case of immediate
requirement and local vendor. Especially in case of mobiles the material comes against
invoice. Generally at store material is received against S.T.N. Material is received from
vendor against invoice by following all the rules of S.O.P. Firstly gate keeper check all
the documents necessary at the gate & compare the material with the invoice.
Paper check-
1. Receiving site
2. Supplying site
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3. Invoice no.
4. H.U. no.
5. Material on paper
6. Gate pass
7. Cartoon counting
Gate keeper sign & stamp the document (invoice copy and purchase order copy) .After
that transfer the material to store ware house where G.R.N. of the material is done after
scanning by the ware house person. This G.R.N. no. is written on the invoice copy with
date and quantity .According to S.O.P., date of receiving has been written on the cartoon
received by the ware house person .Scanning of the material is done against each EAN
no. and article no. in REM as well as in SAP. An inward register is maintained by the
ware house people as well as by the security guard to keep the record of the inward
material. Then after counting of material, it is send to the store to sell. For the security
purpose security tags stitched on the material. Different types of tags with sensor are
punched on the items. Tags are punched on items having cost more than Rs.99
1. Gandola
2. Gap table
3. D- unit
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4. Four arms unit
6. Step table
7. Bins
8. Hyper bins
9. Wall hanging
V.M. plays an important role in designing and visualization of the material on floor.
1. Increase turnover
2. Image building
4. Satisfy customers
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To put forward the best of merchandise highlight in terms of colour, quality, and price in
the most aesthetically appealing way with 100% clarity.
To ensure that all the information is communicated in an informed, friendly and helpful
and selling mode.
Arranged merchandise Easy to find Easy to pick
Aesthetically pleasing
Easy to buy
4. Documents to commercial-
After the whole process in Big Bazaar (Indore) store ware house, the entire
documents send to local commercial office for the payment purpose as well as for the
record. Commercial people maintain a MIRO sheet and send this sheet to head office
where category and commercial make cheque and send to local commercial and then
commercial pay to the vendor only by cheque. Payment by the local commercial is done
only in case of invoice.
Material is delivered (out ward) by vendor to the CDC Indore (central ware
house) by the hired transporter with all the documentation. This time transporter is at the
expense of vendor. Material is received by the central ware house C.D.C. Indore by
follow all the rules of S.O.P. After that they do in warding of the material followed by
racking, segregation & out ward the material to nearest located store(Big Bazaar Indore
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in this case) against S.T.O. In case of Big Bazaar (Indore) the stock comes from central
ware house C.D.C. Indore (Dewas Naka).
Receiving of the material is done by the security in the ware house. First of all
documents are matched with the material. L.R. no. on the consignee copy should match
with L.R. no. on cartoons. Material is weighed by the security person at the receiving
gate and actual weight is been written on the P.O.D. and consignee copy. This is for the
reason that we pay to the vendor according to this actual weight. After that we fill all the
information in SAP and generate inbound register no. and write this no. on inward
register. Then security stamp on POD copy and return it to transporter. Then material is
send inside for pre in warding, where scanning of the material is done.
Post in warding is the next step in which we do the G.R.N. of the material and
forward this material for the segregation .After segregation all the material is designed on
the racks.
6. out warding of the material from central ware house to the store,
after receiving S.T.O. from the store-
Central ware house people outward the material after receiving S.T.O. from the
Big Bazaar store. Ware house people generate the S.T.N. document and after packing of
the material they stick new H.U. no. on the cartoons (on which information and
description of the material is given) and load this material in the truck to deliver to the
store. They send the copy of S.T.N. and gate pass with the material to the store.
All the documents received by the central ware house people should send to local
commercial for the payment purpose as well as for the record before outing of the
material.
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No. of registers maintained in store ware house-Check list for Big
Bazaar Indore-
1. Salable items-
• Inward
• Outward
• Return to ware house
• Return to vendor
• Security inward
• Security outward
• Discrepancy register
• Stock handover register
• Inward
• Outward
• Damage tags register
• Tags flow maintenance
• Tags requisition format
• Inward
3. SIS-
• Inward
• Outward
4. Damage-
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5. Others-
• Returnable goods
• NSM requisition
• Free gift
Documents -
Invoice (bill)-
Invoice is the document send by the vendor with purchase order. Invoice consists
of the details of the product and gives us the information about the material sended by the
vendor and its rate and amount.
• Site address
• Consignee
• Buyer
• Invoice no.
• delivery note
• Supplier reference
• Buyers order no.
• Destination
• Term of delivery mode/term of payment/date
• Description of goods
• Quantity
• Rate
• Discount%
• Amount
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• total
Gate pass-
Gate pass is the document for the entry to the store. It consists of following
things.
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Gate pass consist of a stamp of Big Bazaar contains following
S.T.N.-
S.T.N. is the document generate by the central ware house people when they outward the
material to the store. They send this document with the material. It consists of the
following things-
• Delivery no.
• Delivery date
• Delivery note
• L.R. name
• L.R. date
• Party address
• Article description
• Article no.
• M.R.P.
• Cost
• Quantity
• Amount
• Total
• LST/VAT Tin no.
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S.T.N. consists of two stamps; one of in warding and second of out warding. And stamp
consists of
This copy mainly consists of consignee no. and the instruction given on the back side of
the document, other things mentioned over this document are
• Delivery instructions
• S.T.(TIN NO.)
• Invoice no.
• Date
• Invoice value
• Delivery site
• Booking office address
• Weight of the material
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In the supply chain of Big Bazaar mapping of the vendor is done by negotiating
on the price, quantity and quality. Vendor is provided with a vendor registration no.
Category receives the data of demand of material and makes purchase order to the
vendor. Category purchases the material always in bulk to reduce the cost price of the
material. With the help of the diagram above I want to explain the whole scenario and
role of central ware house in the supply chain.
For the storage of the material purchased by the category, they have two options.
First they can make purchase order directly to the central ware houses from where they
can deliver the material to the respective stores. Second they can store the material in the
mother distribution centre or regional distribution centre (if the material is for a specific
zone).And can deliver the material to the respective ware houses and from ware houses to
the stores.
If we take the example of C.D.C. Indore, supplying stock to Big Bazaar Indore,
Suppose category has purchase 1000 pre pack of the formal shirts for the Big Bazaar
Indore. Then in this case category will make purchase order directly for the central ware
house Indore. Transportation of the material is done at the company’s expense. Central
ware house Indore will transfer the required stock of the shirts to store (especially 40% of
the stock is transferred to the store; rest of the stock will be transfer at the next need).
But the real supply chain come in to play when category purchase the stock in
bulk. In the above diagram vendor is supplying shirts to all the eleven big bazaar
stores.Acoording to the negotiating terms category have purchase eleven thousand pre
pack of shirts for all these registered stores in winter season. Then category will generate
purchase order to the vendor for the four central ware houses supplying the stock to these
eleven stores. These four central ware houses control the flow chain of the material for
these eleven stores. These central ware houses will receive the stock and will transfer the
required quantity to the stores. Rest of the quantity will be stored in these ware houses for
the future immediate requirement. Material at the time of need is transferred to the store
against S.T.O. These central ware houses control nearest stores to minimize the
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expenditure of transportation. Concept of ware housing is to fulfil immediate requirement
and storage of the material.
A supply chain is dynamic and involved the constant flow of information, products and
funds between different stages.
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If we see in case of big bazaar provides the products as well as pricing and availability of
information to the customer. The customer transfer funds to the big bazaar by purchasing the
product present at the store.
Big bazaar conveys point of sales data as well as replenishment order to the ware house
or category that make purchase order to the vendor who transfer the replenishment order via truck
(transporter) to the store. Big bazaar transfer funds to vender after the replenishment.Information
is the driver that serves as nervous system to create a coordinated supply chain. It is life-
line of SCM.Information must have the following characteristics to be useful:
Transportation-
Transportation charges paid by the Big Bazaar to the transporter are 17500/month
up to 1500 kilo meter. If the distance is more than this then 4.50Rs per kilo meter.
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Concept of ware housing in Big Bazaar-
Ware house is nothing but Company’s inventory for meeting immediate customer
demand. Ware houses have a very vital in role in supply chain of retail. High degree of
cost efficient working is essential for retail-chain distribution.
Economic Functions
• Consolidation
• Break-Bulk
• Stockpiling
• Value-Added Services
• Woolen Garments
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• Helps in smooth availability of products
Value added services means add different values to a single service to maximize the
profit and reduce the transportation cost to minimum. In this type of ware housing we
receive stock from a vendor and transport it to different nearest stores.
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In this type of ware housing required ware house consolidate the material from different
vendors and then transfer it to different stores. This format of ware housing is usually
followed in Big Bazaar.
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In this type of ware housing ware house receive material from a vendor but in bulk and
then transfer it to different stores.
Operational Functions:
1. Receiving goods
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7. Dispatching goods
Purpose of any supply chain management team is to reduce the supply chain or to reduce
the distance of transportation because as the distance increases the cost per unit of the
load moved also increases. In this whole process two types of costs are there. First is the
fixed cost that is the cost which we have already paid to the vendor and second is the
variable cost that may vary from different reasons. But in the above curve this variable
cost varies due to increase in distance travelled by vehicle.
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Distribution of stores and ware houses is designed in such a way that
transportation charges reduce to minimum.
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Three type of distribution centre in Big Bazaar supply
chain-
There are ten to twenty central ware house of Big Bazaar in India. C.D.C Indore Dewas
naka consists of 70000 square feet area on rent. This ware house start from July23
2007 .These central ware houses are made at the central location of some specific stores.
And these are multipurpose ware houses. For example C.D.C. Indore receives the stock
from the vendor as well as from the other ware houses (seasonal stock) and transfer this
stock to the next places where it is required in the supply chain. We have three sites for
storing the material. These sites are made to recognise the place of a particular item.
Central ware house Indore pays 3.50 Rs./ square feet rent of the ware house to the 3-PL
Indo arya.
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Racking and segregation of the material-
Before designing the material on the racks we segregate the material firstly
merchandise category wise and then article wise. The idea behind this is only to make
easy picking of the material during outing of the material. We segregate same
merchandise category and after that we segregate same article of the same merchandise
category. And then we put all the material on the racks with the required information. We
also make stock report.
Conversion-U.O.M.(unit of measurement)-
Pre pack is the smallest unit, in this case we have a pre pack of Dj&C shirts have same
colour, different size, different article.
Bag is the mediocre unit between pre pack and cartoon. One bag may be of many pre
packs. One bag has different colour but same article.
Cartoon-
Bigger unit of packing. One cartoon has many bag, many pre pack with same article.
Out warding occur only against S.T.O. We receive S.T.O. from different stores and then create
delivery of that S.T.O. and create a pick list (Its a document).Then we create H.U. no.(cartoon
no.) and issue the material by goods issued and give its print in form of S.T.N.
Scrap-
Scrap is the audit part. This is the material which is of no use at present and was
of use earlier. We send this material to the registered vendor of scrap and vendor in return
pay us by demand draft and we post this draft to head office.
The concept of reverse logistics ware house is implemented for damage stock.
Four reverse logistics ware house are there in India for four different zones. If damage is
done at the store or in ware house then it is send to reverse logistics ware house of that
zone.
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• Ware house packaging cost
• others
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Some terms in supply chain of Big Bazaar-
Balanced Scorecard
Barcode
A Barcode is an encoded set of lines and spaces of different widths that can be scanned
and interpreted into numbers to identify a product. General Use: Scanning, identification
Bins
Backdrop
CPFR is the sharing of forecasts and related business information among business
partners in the supply chain to enable automatic product replenishment. CPFR is
designed to improve the flow of goods from the suppliers, to the retailers' shelves. It also
is designed to quickly identify any discrepancies in the forecasts, inventory, and ordering
data so that the problems can be corrected before they negatively impact sales or profits.
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CRM
When used to describe software, CRM applications are those that focus on relationships,
rather than transactions.
COD
Cash-on-delivery is when the customer pays for merchandise when it is delivered, instead
of upfront.
Catalogue Sales
A catalogue is a collection of items for sale, usually with descriptive details, arranged in
an electronic listing or paper pamphlet or a book. Catalogue sales are used to facilitate
product orders, either by a retailer from a vendor, or by a customer from a retailer.
The Category
The category is the basic unit of analysis for making merchandising decisions.
Men’s apparel and women’s apparel are categories. Categories have key similar
characteristics.
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Category Management
Category management is the process of managing a retail business with the objective of
maximizing the sale and profits of a category.
The second reason for using category management is that it is easier to manage and
maximize profits.
Cross-merchandising
This occurs when a retailer links the marketing of one product to the marketing of
another. A simple example is the use of food displays at grocery stores. If a store wishes
to promote the sales of cheeses, which carry an attractive profit margin, the store may
locate items consumed with cheese nearby, e.g., crackers and breads, and may even
display them directly together or offer samples.
An inventory delivery system where retailers and manufacturers / suppliers work together
as partners. Also known as Quick Response.
A system that enables retailers to integrate their purchasing activities with their stores
and/or with vendors.
Electronic scanner
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Exchange policy
Written rules to follow when merchandise is returned or exchanged for other
merchandise.
Fabric samples
Small pieces of fabric. Also known as swatches.
Gift Certificates
Gift Certificates are paper certificate or card that can be redeemed for a specific value at a
particular store. Gift Certificates are purchased by consumers to be given as gifts in place
of a specific item.
Gross Margin
C.P.+VAT=L.P.+Margin=M.R.P.
CP*VAT%=L.P.
Or C.P.+4% of C.P.=L.P.
M.R.P.-L.P. =MARGIN
MARGIN/M.R.P.*100=MARGIN in %age
Hence;
M.R.P.-L.P./M.R.P.*100=MARGIN in %age
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%Margin*M.R.P./100=M.R.P.-L.P.
LP=M.R.P.-(%Margin*M.R.P./100)
LP=M.R.P. (1-%Margin/100)
A proven loss prevention technique that protects assets and merchandise by utilizing
security tags and labels and EAS detection equipment. EAS systems provide security for
buildings, entrances, exits and enclosed areas by raising an alarm when items protected
with an active tag or label pass through the detection equipment.
Impulse Goods
Impulse Goods are products generally purchased without prior planning. Impulse Goods
can also be used to describe products placed for impulse purchasing at the check-out
areas of the store.
Kiosk
Loss Prevention
Loss prevention is stopping or reducing loss from shoplifting, employee theft, paperwork
errors and poor safety procedures. Guarding and securing the assets of a company.
Mannequins
Stylized plastic, wood, fibreglass, plaster, metal, or glass representations of human form
used for displays.
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Markdown
Market segmentation
The process of dividing the total market into smaller sections based on shared characteristics.
Marking
Marking merchandise with a price before placing it on display on the sales floor.
Mark-up
The difference between the selling price and the cost of an item.
Same-Store Sales Same-Store Sales are sales revenue generated only by those stores
that have been open more than a year and have historical data to compare this year's sales
to the same time-frame last year. By measuring the sales increase or decrease in the
stores that have a history (open a year or more) the industry can get a better feel for how
it is really performing, because this measure -- Same-Store Sales -- takes store closings
and chain expansions out of the mix.
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Salvage goods
Merchandise that has been damaged in transit or storage
Seasonal merchandise
Products that are in demand at a certain time of the year, such as Diwali or Back-to-
School.
e.g. Boys size 32, stone washed blue, comfort fit Levi’s is one SKU.
e.g. Surf Excel in I kg, 500 gms and 250 gms is three SKUs
Variety
E.g. Levi’s Stores have a limited variety - Jeans and related apparel and accessories.
Assortment
Stores with a large assortment are said to have a good depth. The terms assortment and
depth are used interchangeably. e.g. Levi’s Stores carry a large assortment of Jeans and
accessories.
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Product Availability
Signage
Signs, labels, shelf tags, and other identification signs within the store to provide
directions, prices, or information to customers on merchandise or policies.
Stock turnover
A measure for determining how quickly merchandise is being sold.
Supply Chain Management covers the planning and management of all activities
involved in sourcing, procurement, conversion, logistics and distribution. It also includes
coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers.
Trading up
Selling where the salesperson persuades the customer to buy a more expensive item or a
larger quantity than originally intended.
UPC
The Universal Product Code is a standard for encoding a set of lines and spaces that can
be scanned and interpreted into numbers to identify a product. General Use: Scanning,
item level inventory and identification. UPC-A is the most common barcode used in retail
product marking in North America.
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Warranty
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CHAPTER 4
DATA ANALYSIS
63
DATA ANALYSIS
Results-
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2. Annual income of the respondents?
22% of the respondents have their annual income of less than 1.8 lakh,
45% of the respondents have their annual income of 1.8 lakh to 4 lakh.
These are the young and middle aged people having effect of the
globalization and are working in the cities. They always like to spend their
income in retail outlets in spite of kirana shops or unorganized market. and
33% of the respondents have their annual income of more than 4 lakh.These
people have less percentage on the graph may be because of the reason that
these people purchase from this format of the retail for only food items and
in case of other items they are more brand conscious.
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3. How much part of average monthly income spends in retail outlet?
In the above chart by the horizontal axis i have shown four different ranges
of average monthly income people spend in a retail outlet. By the help of
chart i came to know that 30% people spent less than 3000,40% people spent
3000,20% people spent 5000 and 10% people spent more than 5000.
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4. Rank the Big Bazaar on the basis of following parameters?
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Here I found that 58% of respondents prefer second sequence of the
above given sequences while 35% prefer third sequence and 7% of
respondents prefer first sequence. By the help of chart i came to know that
people have seen the strength of big bazaar in following order
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5. Widely accepted sequence of the following parameters for Big Bazaar
by distributing the marks by respondents?
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6. Widely accepted sequence of the following parameters for the Vishal
Mega Mart by distributing the marks by respondents?
If we see Vishal Mega Mart provides low price to the customers becomes
the first criteria to enter in the store with 30 marks, availability of the
product becomes the second criteria with 25 marks, and quality and brand
with the same marks become the next criteria then loyalty and customer
service. One big difference that i have seen between these two retail players
is that vishal mega mart doesn’t focus on the customer service as much as
Big Bazaar. That may be the negative point for the Vishal mega mart.
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Although Reliance fresh is total different segment of the market in
comparison to Big Bazaar and Vishal Mega Mart. Here first criteria for most
of the customers to enter in the store are same as that of above two retailers.
But here customers concerned with the loyalty and brand name of the
company that we doesn’t have seen in above two co. They are not bothered
about the customer service and quality of the store. At some extent they may
be concerned with the availability of the product. So distribution of the
marks is as given above in the chart.
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8. Rank the following parameters in the decreasing order on the
basis of your preference for a retail outlet.
Here by the help of this response from the respondent I came to know
that what a customer expect from a retailer? When I distribute marks of the
respondents for the specific parameters in pie chart then I came to know that
customer prefer the same sequence of parameters as Big Bazaar gave us.
Although level of preference for the different parameters may be different
but the sequence of parameters is same.
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In the pie chart above customer prefer low price as the first criteria to
enter in the retail store, availability as the second criteria, respondents also
give me a hint that consumers also expect good customer service. Then they
focus on quality and other parameters.
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CHAPTER 5
FINDINGS AND
RECOMMENDATIONS
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FINDINGS AND RECOMMENDATIONS
So price and availability becomes the most preferred criteria for the
customers to enter in to a retail outlet. In today’s life every body want to live
with dignity and expect some respect. So customer respect in terms of
customer service becomes the next criteria to be preferred by the customers.
Customer also need valve for money in terms of quality of the product.
If somebody is purchasing from retail outlet then he/she expect that product
should be of good quality.
Due to brand name of the company customer also expect loyalty from
the store and brand product also but not most.
So if we analyze the response from the pie charts then we came to know
that Big Bazaar is fulfilling the customer’s needs in a controlled and
organised way. Big Bazaar is providing the same sequence of parameters as
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per the expectation of customers. So big bazaar is leading in the hypermarket
format of the retail outlets in India.
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ANNEXURE
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QUESTIONNAIRE
Dear Respondent,
1 Name:
2 Age:
3 Genders: M/F
4 Occupation:
5 Annual income
(a) <1.8lakh
(a)Yes
(b) Sometimes
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7 How much part of your average monthly income do you spend in
retail outlet?
(a) 3000
(b) 5000
8 Do you buy from a selected store every time or do you keep on shifting
stores?
9 While you go for the purchasing, you should compare the weekly or
Big day offer of these retail outlet with each other.
a) Strongly agree
b) Agree
c) Neutral
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d) Disagree
e) Strongly disagree
10 Do you prefer to buy food items or others from the same store?
(a) Yes
(b) No
(c) Mostly
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1. Low price 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
4 Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
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2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
4 Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
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2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
4Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
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BIBLIOGRAPHY
84
BIBLIOGRAPHY
www.PRIL.com
www.wikipedia.com
www.google.co.in
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