big bazaar retail visit project report

RMS RETAIL ASSIGNMENT 1
Individual Retail Visit Report
OBSERVATIONS AND ANALYSIS OF BIG BAZAAR RETAIL STORE
BY:
MUSTAHID ALI

MBA-3, ROLL NO: 1334
UNIVERSAL BUSINESS SCHOOL
Contents
Introduction ……………………………………………………………………………………… 3
Brand Philosophy ……………………………………………………………………………… 4
Address of the Big Bazaar retail store ……………….……………………………… 5
Socio economic importance of Big Bazaar in Phoenix Mall, Lower Parel .. 6
Identifying the Retail Type and its Product/Service categories …………… 15
Strategic Drivers of the Retail Industry ………………………………………….. 18
Modern Technology deployed by Big Bazaar …………………………………. 26
Marketing Mix Strategy applied by Big Bazaar …………….…………………. 30
Bibliography …………………….……………………………………………………….. 38

INTRODUCTION
Pantaloons Retail (India) Limited, a subsidiary of FUTURE GROUP, 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 7 millions square feet of retail space, has
over 1000 stores across 53 cities in India and
employs over 25,000 people.
The company’s leading formats include
Pantaloons, a chain of fashion outlets, Big
Bazaar, a uniquely Indian Hypermarket chain,
Food Bazaar, a supermarket chain, blends the
look, touch and feel of Indian bazaars with aspects of modern retail like choice,
convenience and quality and Central, a chain of seamless destination malls. Some of
its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion
Station, all, Top 10, bazaar and Star and Sitara. The company also operates an online
portal, futurebazaar.com.
Big Bazaar is not just another hypermarket. It caters to every need of your family.
Where Big Bazaar scores over other stores is its value for money proposition for the
Indian customers.

At Big Bazaar, you will definitely get the best products at the best prices - that’s what
they guarantee. With the ever increasing array of private labels, it has opened the
doors into the world of fashion and general merchandise including Home furnishings,
utensils, crockery, cutlery, sports goods and much more at prices that will surprise you.
And this is just the beginning. Big Bazaar plans to add much more to complete your
shopping experience.
Brand philosophy
The success of one of the largest retail shops, stores, and catalog companies can be
attributed to the vision and philosophies of their founders. For the companies
highlighted below, each name was a person before it was a world famous retail brand.
For these top retailers, business was not just business, and their enterprises moved to
the top of the retail industry powered by their own vision and personal philosophies.
From setting up the first Pantaloons store in Gariahat, Kolkata in August 1997 and then
the first Big Bazaar in Mumbai at the High Street Phoenix Mills in 2002, Kishore Biyani
has redefined a lot many rules. But as he better puts it across for us, “I based
everything on one philosophy: rewrite rules but retail values. Chase your dreams but
don’t compromise on your belief system.” Today, with a pan India presence, Future
Group is a well-known household name. From products to insurance to real estate, the
company has its wings spread far and wide. To come to think of it, end number of
accolades fall short for Kishore Biyani and his empire that he has built – right from
scratch that too!
Offers shoppers one stop shopping experience.
Wide range of variety
Price and quality conscious “Is se sasta aur acha kahin nai”
Now its “Naye India Ka Bazaar”
Providing a complete bazaar.

ADDRESS
Big Bazaar
462 Phoenix Mills Cmpd, Lower Parel, Senapati Bapat Marg,
Mumbai - 400013
022-66626713, 66626714, 66626703, 66626704, 1800223050
support@futurebazaar.com

Socio-Economic Importance of Big
Bazaar in Lower Parel, Mumbai
With upto 25 retail stores in the city of Mumbai ( Future Group., 2014) and still growing
at a fast pace Big Bazaar is setting its own benchmark for all the retailers in the retailing
industry. I have chosen the Big Bazaar store located in High Street Phoenix Mall, Lower
Parel,Mumbai as it is one the best and convenience region and also has a very
pressure free atmosphere.
This is first big bazaar retail store which was opened in Mumbai at High Street Phoenix
To start off with, the Big Bazaar in Lower Parel is a freestanding or a stand-alone store.
It is isolated and has no adjacent retailers with which they have to share traffic,
however mall also has other electronics retails like Tata Croma, Reliance Digital but
what I observe Big Bazaar has its unique identity and has its location advantage with
all in under one roof forte. This type of store have quite a few advantages which works
in the favour of Big Bazaar, Phoenix Mall, Lower Parel. They are:
 Main location with a lot of front space.
 No competition in close proximity.
 High flexibility in terms of timings and larger space may be obtained.
 Better road and traffic visibility is possible.
 Adaptation of facilities according to individual specification.
 Easy parking can be arranged.
 Reduction in costs are possible, leading to lower prices
The disadvantages that Big Bazaar- Phoenix Mall face being a freestanding store are:
 Relatively high rental costs.
 Competition with other electronics retails like Tata Croma, Reliance digital
within the mall.
 Continuous and consistent traffic will not flow long distances to visit a specific
store.
 Internally they have a limited trade area.
 High advertising expenses.
 Cost such as outside lighting, security, ground maintenance, trash collection is
to be borne by Big Bazaar.

Big Bazaar boasts of having most of the hypermarkets brands that are not available in
that particular area. Though there are competitors only in electronic consumer
durables like Tata Croma , Reliance digital but apart from this big bazaar is all in one
retail store which attracts the customers. This calls for youth, newly married couples,
house wives and all other segments traffic in the store.
$350 Billion consumption spending provides the single biggest business opportunity in
India and is divided into some key categories led by food, fashion and home products.
Market size-
Earlier the Size of Indian Retail was 194% i.e. 2, 30,000 cr. Now it is 18% i.e. 416353
Size of retail in India (in $billion).
Big bazaar formats are household names in more than 63 cities and 65 rural centers
through our rural retailing format, Aadhar. These formats cover over 11 million square
feet of retail space and attract around 200 million customer footfalls in a year. In 2011
Big Bazaar opened its 200th store opened in India.
INDIA – LARGE CONSUMPTION MARKET
18 major languages, 8 major religions, 4000 different castes and communities celebrating 72
festivals, India is the most diverse country

Some stats of modern retail industry.

In the 2000s, states raced against each other on per capita GDP. While almost all
states grew well, not all of them could keep pace with others close to them. The
chart below shows you how state rankings have changed between 2004-05 and
2011-12.
The incidence of poverty has declined from 45.3% in 1993-94 to 37.2% in 2004-05 and
further to 21.9% in 2011-12. The percentage of persons below the Poverty Line in
2011-12 has been estimated as 25.7% in rural areas, 13.7% in urban areas and 21.9%
for the country as a whole.

RMS RETAIL ASSIGNMENT
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Charts of Indian economy and Maharashtra state growth GDP, 1999-2014

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When both growth and poverty reduction are looked at in concert, Maharashtra and
Andhra Pradesh come off as the best perfomers, well above the national average on
both parameters. It is also noteworthy that while Gujarat grew faster than
Maharashtra in terms of its GSDP during the 7 year period under consideration,
Maharashtra did slightly better on a per person basis.

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India today has a large middle class, a youth population which is happy spending. The
figure below shows Mumbai’s (MMR – Mumbai Metropolitan Region) high GDP
growth as compared to that of Maharashtra.

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Overall big bazaar stores in India at a glance, Low cost is not the only thing that people
are looking for today. Bundle offers, discounts, exchange sales are also a great way to
sell your product. Big bazaar targets these offers and bundles them along with the sale
of selected goods. Many people fall for the offer and buy the product. These offers
entice customers to impulse buying thinking the offer might get discontinued.

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5
Identifying the Retail Type and its
Product/Service Categories
Big Bazaar comes under the category of hypermarket retail store. Big Bazaar sell
everything from apparel to Kitchen tools, from kids wear to toys and many more. They
offer it in a way which makes them special. They are available everywhere. Big Bazaar
is a hypermarket store means a large superstore, combining a supermarket and
departmental store, offering full lines of grocery and general merchandise all under
one roof. Their key categories retailed are food, groceries, apparel, furnishings and
consumer durables.
PRODUCT MIX:-
APPARELS FOOD
PRODUCTS
CHILL
STATION
HOME
&
PERSONAL
CARE
FASHION
&
JEWELLERY
CHILD
CARE
&
TOYS
Formal Wear Staples Soft drinks Shampoos Footwear Kids wear
Denim
T- shirts
Ready to eat Packaged
Juices
Detergent
Soap
Beauty Care Toy Bazaar
Fabrics
&
Cut piece
Ready
to cook
Milk items Liquid wash Bindre Stationery
Accessories Spices Frozen
foods
Cream Child Care
Under garment Imported
Bazaar
Ice-cream Deodorants
Night wear Tea & Coffee Utensils
Party wear Plastics
Sarees Crockery

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APPARELS
• Denims
• T-Shirts
• Fabric & Cut
piece
• Formal
Wear
• Casual Wear
• Party Wear
• Ethnic Wear
• Accessories
• Under
Garments
• Night Wear
• Dress
Materials
• Sarees
FOOD
• Staples
• Ready to eat
• Ready to cook
• International
Food
• Spices
• Imported
Bazaar
• Tea & Coffee
FARM
PRODUCT
• Fruits
• Vegetables
• Imported
Fruits
• Dairy
Products
CHILL STATION
• Soft Drinks
• Packaged
Juices
• Milk Items
• Frozen Foods
• Ice Creams
HOME &
PERSONAL CARE
• Shampoos
• Detergents
• Soaps
• Liquid wash
• Creams
• Deodorants
• Home
cleaners
• Utensils
• Plastics
• Crockery
• Sundries
Product Mix
Product Mix Cont..
ELECTRONICS BAZAAR
• Television sets
• Washing
Machines
• Refrigerator
• Personal Care
• mBazaar
• Microwaves
• Small
Appliances
• Laptops
• Computer
Accessories
• Kitchen
Appliances
FASHION & JEWELLERY
• Footwear Bazaar
• Beauty Care
• Navara
• Star Parivar
• Meena Bindre
FURNITURE BAZAAR
• Living Room
• Bed Room
• Kitchen
• Dinning Rooms
• Kids Room
• Been Bags
• Paintings
• Decorative Items

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EVALUATE THE KEY STRATEGIC
DRIVERS OF THE RETAIL INDUSTRY
3-C THEORY
According to Kishore Biyani's 3-C theory, Change and Confidence among the
population is leading to rise in Consumption, through better employment and
income. Big Bazaar has divided India into three segments:
 India one: The Consuming class which includes upper middle and lower middle
class (14% of India's populatn).
 India two: The Serving class which includes people like drivers, household helps,
office persons, liftmen, and washermen (55% of Indiaio's population) and
 India three: The Struggling class (31% of India's population).
With the economy in place today, a new revolution is taking place. It is becoming highly
difficult for the retailers to survive this competition, on and off the web. Revolutionary
thinking needs to be possessed by the retailers to thrive in today’s world. There need
to be a few changes that have to be made by the retailer to sustain him.
 A focused approach to strategic planning.
 Advanced marketing skills.
 A stronger customer focus.
 Enhanced exposure on the Internet.
THE STRATEGY:-
 Savings is the key to the Indian middle class consumer.
 The Concept of Big Bazaar as the store offers large mix of products at a
discounted price, the name “Big Bazaar” was finalized.
 The idea was to recreate a complete bazaar, with a large product offering &
offer a good depth & width in terms of range.
 Price was the basic value proposition at Big Bazaar.

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 Big Bazaar outlets sold a variety of products at prices; which were 5 to 70%
lower than the Market Price.
 The catch line “Is se sasta aur acha kahi nahi” emphasized the value of the Mall.
SELECTING THE LOCATION:-
 The main consideration while selecting the location was whether the low
margin on the products would allow the company to sustain growth.
 The group conducted a study & it was found that for a store like Big Bazaar, a
large catchment area is needed.
 In Mumbai they have around 20 stores located at all prime locations.
THE MERCHANDISE MIX:-
 Large Product mix offered by Big Bazaar was the main attachment.
 The World stocked about 105000 items in over 18 product Categories.
 In first year apparel accounted for 70% of the off take & the price was largely
responsible for the success.
 Price range starts from Rs 49 to Rs 250,000 according to the needs of customers.
 Buying Process for most of the categories at big Bazaar is largely price driven.
STORES DESIGN:-
It tells the customer what the store is all about. It creates an image in the minds of
Customer .It is the starting point of all marketing efforts. For a customer store needs
to be easy to navigate, it must appeal to his sensory Perceptions & must create a sense
of belonging sense of relationship. The environment created in retail store is a
combination of exterior look, store interiors, the atmosphere in the store & events
promotions & themes which form a part of retail store.

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Standard store design size
INTERIOR STORE DESIGN:-
 It is a function of aesthetics within the store, the merchandise sold within the
space used & the overall layout of the store.
 Space planning: the amount of space allocate within the store.
 Location of Various department.
 Creation of planogram.
 Relationship of space of profitability.
 Big Bazaar is the three storied building, the ground floor with food & beverages.
The first floor is completely apparels & home & personal care. The Second floor
is completely with jewellery & decoration materials & the third floor is all about
shoes, casuals, child care & toys.

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1
MARKETING STRATEGY:-
 Minimize Retailing Cost
 Operating
 Fewer Staff on the floor one person for every 500sq ft.
 Furniture cost-Rs. 800 sq ft unlike the Rs. 1600 sqft.( Life style, Shoppersstop)
 Giving discount offers, working women by monthly saving bazaar and home
makers by providing a wide range of food, non food, fruits and vegetable.
TARGET CUSTOMER PROFILE
Geographic :
 Target Region : Mumbai, Lower Parel.
 Areas : Residential & Commercial areas.
Demographic :
 Young working population.
 Women folk & Home makers.
 Young & growing population of nearby areas.
 Higher & Upper Middle class people.
 Recently married couple.
Psychographic :
 Status conscious
 Price conscious
Behavioral :
 Quality conscious
 Weekly & monthly shoppers

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2
Life cycle of Big Bazaar
PORTER FIVE FORCES MODEL:-
Five force Analysis
Rivalry among competitors  Reliance Retail
 Vishal Retails
 Bharti & Wal-Mart etc.
Threats of the entrants  FDI policy not favorable for international
buyers.
 Domestic conglomerates looking to start
retail chain.
 International players looking to foray India.

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3
Bargaining power of the supplier  The bargaining power of supplier varies
depending upon the target segment.
 The unorganized sector has a dominant
position.
 There were few players who have a slight
edge over others on account of being
established players & enjoying brand
distinction.
Bargaining power of buyer  Consumers are price sensitive.
 Availability of more choice.
Threat of substitutes  Unorganized retail.
SWOT ANALYSIS:-
Strengths Weakness
Opportunities Threats
SWOT

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Strengths
• One stop shop
• Benefit of early entry into the retail industry
• Cheap goods as no middleman
• Diversified business
• Better understanding of customers
Weaknesses
• High cost of operation due to large fixed costs
• Sub standard Quality of goods
• Very thin margin
• High attrition rate of employee
Opportunities
• Organized retail (4-5%)
• Rural market
• Evolving consumer preferences
• Business in smaller cities
Threats
• Unorganized retail
• Lot of competitors coming up to tap the market
potential
• Margin of business reducing all the time

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KEY STRATEGIC DRIVERS ARE:-
 Maha Bachat
 The Great Exchange Offer
 Discounts – “Hafte ka sabse din was introduced by the Big Bazaar, where in
extra and special discounts were offered on Wednesday every week, to attract
the potential buyers into their store.
 Junk swap offer
 Cheaper price
 All things available in a single store
 Brand endorsement
 Weekend discounts
 Catchy tagline – Isse sasta aur accha kahin nahin
 Wednesday bazaar

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Identify all the modern technology
deployed by the big bazaar :-
 The evolution of technology within the retail and e-commerce space is shaping
how consumers behave and interact with brands and savvy, smart retailers
know that understanding shoppers’ behavior is key for success. These retailers
realize they can utilize technology to capitalise on consumer needs and
customised offerings to help significantly increase their bottom lines.
SAP Point-Of-Sale (SAP POS)
 India’s retail giant Future Group is installing the latest point-of-sale (POS)
technology and retail software from Germany-based Wincor Nixdorf, a leading
provider of innovative IT solutions to retailers and retail banks, to streamline its
retail store processes and improve the customer experience across its outlets.
 Technology deployment Operational Bar strength of big bazaar was info. Sys.
code reader and EDI (electronic data interchange) for information sharing with
suppliers with in & across the stores
 Retail link to study POS data & product inventories.
 Introduced RFID to have more visibility in S&C.
 Implemented Future SAP to build transact. Mgt. sys
 Launched e-commerce stores
.

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Other technologies are:
 Existing architecture of it system(hardware)
 Billing system
 Inventory replenishment
 Order tracking
 Vendor selection process
 SANCHAYAN AND SAMADHAN- These is the applications used for cash
transactions, also any error in transaction related to cash are corrected through
these applications.
 SAMPRADAN- this software is used for pay back membership card i.e. used for
checking points on card and redemption of voucher.
 SAP – They uses this software in warehouse for inventory purpose.
 SPARSH – This software contains all the staff information regarding their wages,
attendance, Timings etc.

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8
Online website
Store
Warehouse
Store
Store
Warehouse
Datacenter
DR
All Branches / Retail
Stores
Web
Server
DNS
Server
Proxy
Server
Application
Server
Application
Server
Application
Server
Ro
ute
Fire
wall
Swi
tch
Web
Server
DNS
Server
Proxy
Server
Application
Server
Application
Server
Application
Server
Ro
ute
Fire
wall
Swi
tch
Leased
lines
Leased
lines Leased
lines
Leased
lines
Private
Cloud
Big Bazaar Network Ssys Design

2
9
Online website is one of the most powerful sourcing system which is direct to the
customer, customer can check the available items/products , prices, offers, bundle
offers and beside they can directly buy online through the website.

3
0
IDENTIFY THE MARKETING MIX
STRATEGY APPLIED BY THE big
bazaar, TO GAIN COMPETITIVE
ADVANTAGE
Retail
Marketing
Mix
Price
Place
Product
PromotionPeople
Process
Physical
Evidence

3
1
How does a retailer inform his customers about the product he has an offer on?
 How does he lure them to visit his store and shop?
 How does he achieve his sales target?
The answer to all the above questions lie in the retail marketing mix strategy the
retailer follows to pursue his marketing objectives. All these strategies are explained
below.

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Bibliography
1. Source: CSO, RBI, EAC to PM, Ministry of Finance; 10th March, 2014
2. Databook for DCH; 10th March, 2014
3. Source: Rural Urban Distribution of Population - India, Census of India
2011 (PCA Final Data) #: Refers to Union Territory
4. Source : Reserve Bank of India, Central Statistical Organisation, Finance
Ministry, EAC to PM etc.
5. http://en.wikipedia.org/wiki/Indian_economic_census
6. http://censusindia.gov.in/Census_And_You/economic_activity.aspx
7. http://censusindia.gov.in/2014-Circulars/Socio_Economic_Circular.html
8. https://unstats.un.org/unsd/newsletter/unsd_workshops/country/India
n%20Economic%20Census.pdf
9. Bajaj, C., Tuli, R. and Srivastava, N.V. (2010) Retail Management, 2nd
edition, New Delhi: Oxford University Press.
10.http://www.futurebazaar.com/
11.http://bigbazaardirect.com/
12.http://khojguru.com/mumbai/big-bazaar-big-retail-store-in-phoenix-
mall-lower-parel-mumbai_3mm47
13.http://en.wikipedia.org/wiki/Big_Bazaar
14.http://www.bplans.com/samples/sba.php
15.Pantaloon Retail India Limited
16. "Future Group trims workforce". Times of India. 21 February 2012.
Retrieved 24 February 2012.

big bazaar retail visit project report

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