Sarang banubakde retail_report_bigbazaar

Retail Visit Report: Big Bazaar Sarang Banubakde
Individual Assignment-RMS Page 2
Guided By : Prof. Bibhas Basumatray
Submitted by: Sarang Bnaubakde
1361 MBA3

Table Of Content
Sr.No Topic Page No.
1. Indian Retial Industry: An
Overview
4
2. About Brand: Big Bazaar 5
3. Socio Economic Importance
of Big bazaar, Mulund,
Mumbai
6
4. Retail Type and
Product/Service Categories
8
5. Key Strategic Drivers Of
Hypermarkets
11
6. Modern Technology
Deployed by Big Bazaar
13
7. Marketing Mix Strategy by
Big Bazaar
15
8. Refrences 19

Indian Retail Industry: An Overview
India, one of the most diversified and second largest populated nation in world, have biggest
number of consumer in world except China, which tops the list. With 1.25 billion of population,
India is hot market for retail industry and great deal to cater for. Today India’s total retail industry
stands for $450bn. A large young working population with median age of 24 years, nuclear
families in urban areas, along with increasing working women population and emerging
opportunities in the services sector are going to be the key factors in the growth of the organized
Retail sector in India. The growth pattern in organized retailing and in the consumption made by
the Indian population will follow a rising graph helping the newer businessmen to enter the India
Retail Industry.
Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$
175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The
Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20
per cent per year. The future of the India Retail Industry looks promising with the growing of the
market, with the government policies becoming more favorable and the emerging technologies
facilitating operations. According to the Global Retail Development Index 2012, India ranks fifth
among the top 30 emerging markets for retail.

About Brand: Big Bazaar
Launched in August 2001, Big Bazaar a child of Future group India, has now become the iconic
destination of modern retailing for all sections of Indian consumers. Big Bazaar is credited with
bringing organized mega retailing to India. Brand Big Bazaar stands for delivering value for
money. Customer service and shopping comfort are at the core of Big Bazaar’s philosophy.
Innovation and initiative define its brand character. It strives to reach out to its customers by
imbibing the local flavour and melting into the local geography.
The first Big Bazaar store, with an area of about 24,000 square feet, opened on VIP Road,
Kolkata in August 2001. This was followed by stores in Hyderabad, Bangalore, Mumbai and
Gurgaon. Their vision is to deliver everything, everywhere, every time for every Indian consumer
in the most profitable manner.
Brand
Associ-
ation
for Big
Bazaar
After
2011
Till
2011

Socio-Economic Importance of BigBazaar
Mulund, Mumbai
Mulund is a suburb in north-east of Mumbai, India about 32 kilometers from it. It is also
has a railway station on the Central Railway line of the Mumbai Suburban Railway It is
nestled alongside the foothills of the Sanjay Gandhi National Park with easy access to the
Eastern Express Highway and Navi Mumbai through the Mulund-Airoli Bridge. Mulund is
known as "Prince of Suburbs" due to its trendy lifestyle. Mulund is one of the few suburbs
of Mumbai to boast of a vibrant night life.
The centre of it all lies within Nirmal Lifestyles mall, near Nahur. This is where Big Bazaar
is located. Hence the footfall in Big Bazaar atNirmal lifestyle is much highest among all
the retailers in Mulund. It has a population of more than 9 lakh. A cosmopolitan mix of
Gujaratis, Maharashtrians , Tamils, Malayalis, Kannadigas, Sindhis and Punjabis live in
Mulund. Big bazaar has a great opportunity to serve this cater the demand of this
cosmopolitan population. As Mulund is known for its trendy culture, Big bazaar has
adopted its store pattern here and hence serves all the category possible. Not only Indian,
but it’s the only place in Mulund where you will get Chinese, Thai, Mexican, Italian and
other continental food ingredients.
Mulund have large number of low income group, who mostly stays in area like Gawanpada, Kindi
Pada etc. Also this it is very proximate to Thane and Bhandup where also large number of low
income group lives. Big bazaar Mulund have staff of around 170, which include cashiers,
attendees, helpers, box boys, skilled labors for various sections, security guards and back office
management. When 50 of those employees were enquired, 32 of them were from Mulund and
surrounding area and others were from rest of the Mumbai.
Total number of
Employees in Big Bazaar
Mulund
Employees from
Mulund and
surrounding
suburbs (117)
Employees from
Rest Mumbai(54)
Picture below showing the
continental food rack in Big Bazzar

Thus Big Bazaar provide a good opportunity for habitants of Mulund and surrounding suburbs. It
is part of Nirmal Lifestyle mall, which is a social hub for Mulundites. Nirmal also have their
residential apartments in same campus of mall. There are total 150 plus flats and all are occupied.
Hence it is readily catering 150 households daily. Other than this, as big bazzar is one stop shop
for most of the household amenities, many household gives it a first preference, over other hyper
markets.
According to socio economic indicators of change in India, the per capita consumption of food
grains in KG has increased from 182 in 1991-92 to 225 in 2006-07. This figure clearly indicates
the increase in spending and consumption of food and related services has grown in India. India
has the largest growing middleclass. The per capita income of middleclass in last two decade has
increased many folds. Big Bazaar with its offering of cheapest and best in the range, targets
directly to this ever increasing middleclass.
The following figure shows that among the most rising nation of the world, India has the
maximum of more tham 75% of its population as middleclass. Hence with its more than 250 stores
all around India, Big Bazaar has emerged as one of the most important and a trend setter player in
organized retail sector in India, with high score on socio-econominc quotient pertaining to its
employment generation and service offering to all social classes in India.

Retail Type and Product/Service Categories
Big Bazaar is credited with bringing organized mega retailing to India. The project was conceived
as a uniquely Indian hypermarket in a format that combined the look, touch and feel of Indian
bazaars with the comfort, convenience and quality that modern retailing brings. Attracting over
100 million customers every year, it has democratized shopping in India and become synonymous
with great promotions that offer quality products at affordable prices.
On a typical weekend evening, a Big Bazaar store plays host to over 10,000 customers from moms
along with their demanding kids to senior citizens with their grand children in tow. Built on an
inclusive platform that welcomes consumers from all socio-economic strata, a visit to Big Bazaar
is not only about shopping but also about pending quality time with the family.
Format Products Category Value Added Services
->Hypermarket.
->30,000 square
feet to 160,000
square feet
->Big Bazaar
Mulund size
55,000 square
feet
->Apparel
-> General merchandise
-> food & beverages
->cosmetics
-> Home needs & décor
(FMCG non food)
->electronics
-> Furniture
->communications
->books &
entertainment
->consumer credit
-> beauty
->salons
-> gyms & health services
-> travel services

Other than those mentnioned above Big Bazaar have several other brands like Pepsico, Philips,
Britannia, Tupperware, Wipro, Sula, Puma, Bombay dying, Parle Agro etc.
Following table shows the price comparison of private label Kroyo of Big Bazaar v/s other local
label of Croma, Zine and National Brands like Samsung, LG, Bajaj and Morphy Richards

With a better understanding of consumer behaviour across various cultures and classes, Big Bazaar
has put together a stunning range of over 160,000 SKUs. Private labels of Big Bazaar are among
the largest apparel and fashion brands in the country. These include, DJ&C – men’s casual wear
range and Knighthood – men’s formal wear range; Pink & Blue are exclusive garments designed
for modern kids; Srishti, a label of ethnic wear for women; Haute N Spicy, fashionable western
wear for teenage girls; Dreamline, a label that caters to an entire range of home linen, utensils and
crockery and D’tachi, a luggage label that offers outstanding value for money. Big Bazaar has also
tied up with a host of well-know brands which offer exclusive lines created especially for the store.
These include Levis, Lee Cooper, Wrangler and Disney.
As a hypermarket, Big bazaar have everything to offer. It has adopted well according to indian
customer past behaviour pattern, which would help them to increse the footfall and repeate
purchase. Thus big bazaar has left an impression in Indian customers.

Key Strategic Drivers Of Hypermarkets
There has been much consolidation in the hypermarket industry in recent years. The surviving
players have realized that they cannot be all things to all people. Instead, they are attempting to do
the things they do best better than their competition. Nearly every survey consistently indicates
what today's customers are looking for in their shopping experience:
Sell what they need and have it in stock when they want it.
Make it easy for them to shop and find what they are looking for.
Provide all the information they need in order to quickly decide what to buy.
Have friendly helpful people available to make the shopping experience a pleasant one.
Controlling operational costs is certainly one of the biggest challenges that any retailer faces. Since
hypermarkets typically run on extremely low profit margins, the need for a lean and efficient
operation is critical. Labor costs are the single greatest controllable expense. Some hypermarket
operators have a tendency to cut labor during tough times. If labor cost reduction is not managed
properly, customer service and store conditions may suffer. This, of course, results in lost
customers and sales. Retailers that do not properly budget for necessary training programs will
most likely see both increased employee turnover, which becomes very costly over time, as well as
reduced customer service, due to a lack of training.
Some key drivers in hypermarket industry that Big Bazaar could implement are:
1. Delivering maximum value:
Successful retailers are developing strategies that offer customers greater value over
competitors’ and are sustaining them over time. To do so, they are focusing their energies
on creating centers of excellence, such as connecting with their customers, being a leader
in terms of the merchandise and assortment that they provide, and having excellent
operations in place. Although retailers that provide value don’t always do so at a low
price, extreme value retailers are expected to continue to take share of wallet from the
retailers that have traditionally appealed to lower income, treasure hunting, and otherwise
value conscious consumers.
2. Being Innovative:
Retailers are more and more experimenting with their store formats. Additionally, they are
effectively designing and managing the various strategic levels to enhance the overall
customer shopping experience. The problem with being known as an innovative retailer is
that it can only remain innovative as long as its customers believe the innovations are
fresh and exciting. Department stores were once thought of as being an innovative retail
format. Thus, innovative retailers must continuously implement new ideas or else their
customers will begin to view them as being old hat.

3. Cost Control :
Successful retailers, particularly those competing in the low price segment and many in
The Big Middle, are efficient and effective in integrating their suppliers, manufacturers,
warehouses, stores, and transportation intermediaries into a seamless value chain, in order
to minimize system-wide costs, while satisfying the service levels required by its
customers. They are seeking out and using innovative technology throughout their supply
chains, to reduce costs and provide value for their customers.
4. Credit Facility :
The Indian consumers are gradually accepting plastic money. Indians spend just 1% of
their total purchases through credit cards, while the Koreans make one fifth of their total
purchases through credit cards. The world average hovers around 9%. From a mere 3.2
mn in 2000, the number of credit cards has grown to 22.6 mn in 2012. This increase
boosts retail spend, as it enables impulse buying and big ticket purchases.
In a decade there has been almost 100 % gowth in number of credit card users. Big bazaar
has its tie up with SBI, ICICI, IndusInd bank where it offers 5% cash back if purchased
from these credit cards.
0
5
10
15
20
25
30
2003-04 2004-05 2007-08 2012
No. of credit Card holders in India (in
millions)
No. of credit Card holders in
India (in millions)

Modern Technology Deployed by Big Bazaar
Modern technology has enabled hypermarkets to serve better with accuracy, unambiguity and in
smart way. Smarter software is the muscle behind IT solutions for Big Bazaar. Together with
comprehensive technology and cost-effective methodologies, help Big Bazaar thrive in the fast-
paced global economy and help them to:
 Deliver a smarter shopping experience
 Build smarter operations
 Create smarter merchandising and supply networks
Various technologies implemented at Big Bazaar :
• Information technology Infrastructure Library
describes procedures, tasks and checklists that
are not organization-specific, used by an
organization for establishing a minimum level
of competency. It allows the Big Bazaar to
establish a baseline from which it can plan,
implement, and measure. It is used to
demonstrate compliance and to measure
improvement in IT Services.
• SOA is system oriented architecture which
help to encourages maximum reuse of
business logic and services across retail
processes.supports closer integration with
retail trading partners and fosters more
responsive, optimized operations
• Send exactly the right merchandise to the
right store. Track the status of all
merchandise through shipping, receiving, and
distribution.Allocate items directly to your
stores using a fully integrated Allocation and
Replenishment module to balance both
merchandise plans and store-level sales
activity.

With implementation of all these modern technologies it led to workload management and
prioritization hence optimized performance across all business processes. With grid computing and
SAS applications, Business Analytics are done faster, better and cheaper. It distributes computing-
intensive SAS application across hardware resources across Big Bazaar. Grid computing provides
parallelization of Business Analytics job for improved performance.
They were able to reduce a record 150% on the cash out time in about 40 stores with help of
technology in cash counter management and has been successively rolled out the similar systems
in the all the 132 Big Bazaars in the country. To manage the high volume of footfalls, in big format
outlets, 26 cash counters with touch screens and multiple scanners had been installed.
Apart from this, Big Bazaar has also implemented RFID. All pallets and boxes are having RFID. It
helps checking material has gone missing during the transport. Auto checking of correct boxes
into correct vehicles with the help of RFID is done. It alarm users if wrong loading is done. It
helps identification of product movement. Identifies which products moves faster on Friday or
Wednesday Helps in calculating stocks . There has been 16% reduction in product stock outs since
adoption of RFID. It has been found that RFID equipped shops are 63% more efficient in
replenishing out-of-stock items. At Big Bazaar Out-of-stock items are replenished 3 times faster
with RFID and cost of excess inventory was reduced by more than 10%.
Picture: The cash out time was reduced by record 150% in about 40 stores with help of
technology and IT implementation in cash counter management.

Marketing Mix Strategy by Big Bazaar
Big Bazaar competes in highly competitive retail industry, where there is large market share of
mom & pop stores. The neighborhood grocery stores are still a first preference by an average
Indian middle class customer. Although per capita income of middle class in India is increasing
and middle class contributes most to the national income, but their spending habits are still weak
and mostly have traditional approach while shopping. In Mulund, Big Bazaar have a tough
competition with D-mart which is also in vicinity of Big Bazaar and hence there is always a race to
grab a customer.
In such situations marketing efforts would help to increase awareness and create interest in
customers with help of promotions which would compel them to step into store. Big bazaar right
from its establishment has adopted various marketing tactics. They have launched various schemes
to lure customers. By using IMC tools, they reached every household posibble where they have
presence. From purchasing the whole fromt page of time of india to distributing flyers inside
newspaper. From TVCs to radio commercials. With advent of social media Big Bazaar is using
this tool effectively. Following table shows various IMC tools used by Big Bazaar.
TVCs, cards,
Newspapers,
Social media
Outdoor
Media
Flyers &
Radio

According to customer behavior and past purchases analysis, it is observed that when customer
turns right, he tends to spend more. Big bazaar Mulund, have a compulsory right turn. Soon after
entrance there is fresh vegetables and fruits shelves. As we move future right there are some nested
stores. A chemist, ‘Pharma Cross’, Hair Expresso a unisex hair saloon, mini Vodafone store and a
Kodak outlet. There is also a special counter for loose Girnar tea, where one can have tea of his
own combination (leafy, granules, dust). Just infront of all these nested stores there is home décor
section and beside it apparels, luggage and footwear.
There were in house promoters for Prestige Induction cooker, Horlicks oats and Colgate. Big
Bazaar, Mulund charges these promoter on per day basis. At the extreme left there were electronic
goods like microwave ovens, grillers, food processors. The local brands like Koryo were kept at
left where national brand like LG was at right. Behind this there was kitchen ware and cutlery
section. Adjacent to it was live bakery and meat counter. To the right of kitchen section there was
frozen food section and then from right to extreme right there was full range of FMCG food & non
food & beverages. At the end of FMCG section, there begins apparel section. Lighting in this
section was completely different from rest store. All lights were of yellow shades. The whole store
has a grid format. This whole arrangement was done keeping in mind customer behavior.
There were several indoor promotion by Big Bazaar. Following were some of the indoor
promotions.
Indoor
promotions at
Big Bazaar

The end caps were mostly occupied by local labels like Kamani oils, Saini fresh, Balaji Wafers,
etc. At the cash counter there were many small racks which provokes customer to have impulse
buying. Most of these products were those which genrally consumed due to indulgence, like
chocolates, magazines, DVDs etc. Following picture shows cash counter and end cap of Nilon’s
pickle.
Big Bazaar has been credited with some of the biggest consumer campaigns in the history of
Indian retail. In celebration of Republic Day, Big Bazaar created a three-day shopping bonanza
called Sabse Saste Teen Din. This has now become a national event that attracts millions of
customers eager to benefit from the once-in-a year smart deals. In January 2008, the three-day
event generated sales worth over Rs. 240 crore (US$ 60 million) in 80 Big Bazaar stores.
Wednesday Bazaar is the Hafte ka Sabse Sasta Din. It was initially created with the intent of
decongesting weekends and driving footfalls on weekdays. As it transpired, most Big Bazaar stores
now attract as many customers on Wednesdays as they do on weekends.
In-store communications in Big Bazaar are unique and rather novel. To ensure that no one misses
out on an opportunity to gain from special offers, service boys ferry around a trolley with the
product inside, announcing the scheme. Not only is this entertaining it also helps customers pick
up the product from the trolley instead of walking up to the rack where it is on display. To make
sure that non-English speaking customers don’t feel alienated the communication is also conducted
in the local language. The communication is always unambiguous and direct.
Big Bazaar being first one in its category to come in market, it enjoys the status of being
synonymous with most of the other hypermarket.

References
http://shodhganga.inflibnet.ac.in/bitstream/10603/6407/7/07_chapter%202.pdf
http://www.slideshare.net/DINESHTAPARIA/big-bazaar-sip-report
Big Bazaar- An overview.pdf
Retail Success and Key Drivers(PDF)
PROFILES OF BIG BAZAAR AND TOTAL(PDF)
Mulund - Wikipedia, the free encyclopedia
http://www.slideshare.net/shaunaksontakke/it-infrastructure-at-big-bazaar
http://businesstoday.intoday.in/story/brand-equity/1/8534.html
http://issuu.com/babasabpatil/docs/a_project_report_on_brand_positioni
http://articles.economictimes.indiatimes.com/2005-12-24/news/27503511_1_mulund-east-
zaver-road-religious-structures
http://www.indiainfoline.com/Markets/News/Big-Bazaars-Sabse-Saste-5-Din-back-with-
Mega-deals-and-bigger-bargains/5338770514
http://www.quora.com/Startups-in-India/How-many-Credit-Card-Debit-Card-Net-banking-
account-holders-are-there-in-India

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