EMPOWERING MINDS
A Study On The Financial Performance Of Big Bazaar
Organization StudyAt
BIG BAZAAR MALLESWARAM BANGALORE
Submitted in Partial Fulfilment of the Requirements ofBangalore University for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
By
BIPROJIT DEYREG No: 13SKCMA161
Under the Guidance of
Prof. VENKATRAMAN SUBRAMANIAN
AIMS(ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES)
Peenya, Bangalore
2013 - 2015
DECLARATION
I, BIPROJIT DEY, hereby declare that thisOrganisation Study Report titled A Study On The FinancialPerformance Of Big Bazaar is based on the original studyconducted by me under the guidance of Prof. VenkatramanSubramanian.
This report has not been submitted earlier for the award of
any other degree / diploma by Bangalore University or any
other University.
Place : Bangalore
Date :
BIPROJIT DEY
CERTIFICATE
Certified that this organization StudyReport titled “A STUDY ON THE FINANCIAL PERFORMANCE OF BIGBAZAAR ” based on an original study conducted by BIPROJIT DEYof IIIrd Semester MBA under the guidance of Prof.VENKATRAMAN SUBRAMANIAN Professor MBA department.
This report is based on the original study undergone and has
not formed the basis for the award of any other degree/diploma
by Bangalore University or any other University.
Prof. Venkatraman Subramanian Dr. Kerron G Reddy
Professor MBA department
CEO and Principal
Place: Bangalore Place:
Bangalore
Date: Date:
Acknowledgement
An undertaking of work life - this is never an outcome of asingle person; rather it bears the imprints of a number ofpeople who directly or indirectly helped me in completing thepresent study. I would be failing in my duties if I don't saya word of thanks to all those who made my training periodeducative and pleasurable one. I am thankful to Big Bazaar,Malleshwaram for giving me an opportunity to do the internshipin the company.
First of all, I am extremely grateful to Mr. Tarun Saha (StoreKarta) for his guidance, encouragement and tutelage during thecourse of the internship despite his extremely busy schedule.My very special thanks to him for giving me the opportunity todo this project and for his support throughout as a mentor.
I must also thank my faculty guide Prof. VenkatramanSubramanian (Faculty, Acharya Institute of Management &Sciences) for his continuous support, mellow criticism andable directional guidance during the project.
I would also like to thank all the respondents for giving
their precious time and relevant information and experience, I
required, without which the Project would have been
incomplete.
Finally I would like to thank all lecturers, friends and my
family for their kind support and to all who have directly or
indirectly helped me in preparing this project report. And at
last I am thankful to all divine light and my parents, who
kept my motivation and zest for knowledge always high through
the tides of time.
Biprojit Dey
Date:
Contents :
CHAPTER CONTENTS Page No.
CHAPTER 1
1.1 Introduction
1.2 Industry Profile
1.3 Company profile
1.4 Products Profile
1.5 Competitors Profile
1
8
21
33
34
CHAPTER 2 Organization Structure 36
CHAPTER 3
Functional Departments
3.1 Human Resource Dpmt
3.2 Customer Service Desk
3.3 Administration
3.4 Logistics
3.5 Marketing Department
3.6 Sales Department
39
40
40
41
42
43
43
CHATPER 4 Ethical / Best Policies / Policies in the organisation
45
CHAPTER 5 SWOT Analysis 48
CHAPTER 6 McKinsay 7 Model Discussion 51
CHAPTER 7 Research Problem Study 57
CHAPTER 8 Findings, Suggestions & Conclusion
70
CHAPTER 9 Bibliography & Annexure 74
LIST OF FIGURES/CHARTS
SERIAL NO. FIGURES/ CHARTS NAMEFig. 1 Various Retail formats across value & lifestyle Segments
Fig. 2 Future Group
Fig. 3 3B Model of Management
Fig. 4 Formats of Retailing
Fig. 5 Strategy used in Big Bazaar
Fig. 6 Product Mix
Fig. 7 Organization Structure
i ) Zonal
ii) Big Bazaar
Fig. 8 Functional Departments
Fig. 9 Administrative Department
Fig. 10 Core Values
Fig. 11 Quality Policy
Fig. 12 SWOT Analysis
Fig.13 McKinsay Elements
Fig.14 McKinsay 7s Model
Fig.15 Organization Structure
Fig. 16 Current Ratio, Liquid Ratio, Gross Profit Ratio, Net profit
Ratio, Proprietors Fund, Earnings Per Share, Stock
Velocity Ratio, Inventory Turnover Ratio, Interest
Coverage Ratio, Degree of Operating Leverage, Fixed
Asset
LIST OF TABLES
SERIAL NO. TABLE NAMETab. 1 Future Group In Brief
Tab. 2 Founder Board
Tab. 3 Company Profile of Big Bazaar
Chapter 1
1.1 INTRODUCTION
Future Group understands the soul of Indian consumers. As one
of India’s retail pioneers with multiple retail formats,
Future Group connects a diverse and passionate community of
Indian buyers, sellers and businesses. The collective impact
on business is staggering. Around 300 million customers walk
into the stores each year and choose products and services
supplied by Future Group's 30,000 small, medium and large
entrepreneurs and manufacturers from across India. And this
number is set to grow.
Future Group employs 30,000 people directly from every section
of our society. They source their supplies from enterprises
across the country, creating fresh employment, impacting
livelihoods, empowering local communities and fostering mutual
growth.
Future Group believe in the ‘Indian dream’ and have aligned
our business practices to their larger objective of being a
premier catalyst in India’s consumption-led growth story.
Working towards this end, Future Group are ushering positive
socio-economic changes in communities to help the Indian dream
fly high and the ‘Sone Ki Chidiya’ soar once again. This
approach remains embedded in Future Group's ethos even as they
rapidly expand their footprints deeper into India.
Future Group makes every effort to delight its
customers, tailoring store formats to changing Indian
1 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
lifestyles and adapting products and services to their
desires. Future Group operate some of India’s most
popular retail formats. Across value and lifestyle
segments, Future Group's multi-format retail strategy
caters to the complete consumption needs of a wide cross-
section of Indian consumers.
As modern retail drives fresh demand and consumption
in new categories, Future Group's strategy is based on a
deep understanding of Indian consumers, the products they
want, and making these products available in every city,
in every store format.
2 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
LIFESTYLE
Style for Every Occasion
DIGITAL
Connecting the Youth ofIndia
FIG. 1: Various Retail Formats
3 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
VALUE
Helping India Save
HOME
Building Dreams in a New India
Future Group offers innovative offerings at affordable prices
tailored to the needs of every Indian household.
Pioneers in the India’s retail space, Future Group's
formats are household names in more than 93 cities and 60
rural locations across the country
Future Group's stores cover around 17 million square feet
of retail space and attract around 300 million customers
each year
Pantaloon Retail (India) Limited focuses on the lifestyle
retail segment led by the Pantaloons and Central formats
Future Value Retail focuses on the value retail segment
through the Big Bazaar, Food Bazaar and KB’s Fair
price formats.
BRANDS KNOWLEDGE SERVICES RETAIL
SHOPPING MALLS
E-TAILING
LEISURE
CAPITAL
4 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
FUTURE GROUP
&
ENTERTAINMENT
CONSUMER FINANCE INSURANCE
LEARNING
&
DEVELOPMENT MEDIA VENTURES
LOGISTICS
Type Private
Industry Retail
Founder(s) Mr. Kishore Biyani (MD & CEO)
Headquarte
rs
Mumbai, Maharashtra, India
Products Discount, grocery and convenience
stores, cash and carry, hypermarkets,
financial services
Employees 35,000
Divisions Pantaloon Retail, Future Value Retail 5 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Limited
Websites www.futuregroup.in
www.futurebazaar.com
Tab. 1 : Future Group in Brief
Tab. 2 : Founder Board
Kishore Biyani
Group CEO, Future Group
Rakesh Biyani
Director, Future Group
Vijay Biyani
Director, Future Group
6 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Anil Biyani
Director, Future Group
Sunil Biyani
Director, Future Group
Fig. 2 : Future Group
Fig. 3 : 3B Model of Management
7 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
FUTURE GROUP
3 B MODEL MANAGEMENT
VALUES/FUTURE GROUP
GENELEARNING METHOLOGY
STANDARD OPERATING PROCESS (SOP)
1.1.2 VISION
“Future Group shall deliver everything, everywhere & every
time for every customer in the most profitable manner”
1.1.3 MISSION
We share the vision & believe that our customers &
stakeholders shall be served only by creating &
executing the future scenarios in the consumption space
leading to economic development.
We will be the trendsetters in evolving:
8 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
VISHWASBELIEF VYAVHARBEHAVIOR VYAPARBUSINESS
OUR BELIEF
OUR BEHAVIO
ROUR
CULTURE
delivery formats
Creating retail reality.
Making consumption affordable for all customer
segments –for classes & for masses.
We shall infuse Indian brands with confidence & renewed
ambition.
We shall be:
Efficient
Cost conscious
Committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity,
humility & united determination shall be the driving
force to make us successful.
1.2 INDUSTRY PROFILE
The contracting global economy, advances in technology, a
proliferationin the number of shopping channels, and an
increasingly well-informed and mobile consumer base are
altering the means, modes, and manner in which consumers shop.
9 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
1.2.1 HISTORIES AND EVOLUTION OF RETAIL INDUSTRY:India retail industry is the largest industry in India, with
an employment of around 8% and contributing to over 10% of the
country's GDP. Retail industry in India is expected to rise
25% yearly being driven by strong income growth, changing
lifestyles, and favourable demographic patterns.
It is expected that by 2016 modern retail industry in India
will be worth US$ 175- 200 billion. India retail industry is
one of the fastest growing industries with revenue expected in
2007 to amount US$ 320 billion and is increasing at a rate of
5% yearly. A further increase of 7-8% is expected in the
industry of retail in India by growth in consumerism in urban
areas, rising incomes, and a steep rise in rural consumption.
It has further been predicted that the retailing industry in
India will amount to US$ 22.5 billion by 2015 from the current
size of US$ 18.5 billion. Shopping in India has witnessed a
revolution with the change in the consumer buying behaviour
and the whole format of shopping also altering. Industry of
retail in India which has become modern can be seen from the
fact that there are multi- stored malls, huge shopping
centres, and sprawling complexes which offer food, shopping,
and entertainment all under the same roof.
India retail industry is expanding itself most aggressively;
as a result a great demand for real estate is being created.
Indian retailers preferred means of expansion is to expand to
other regions and to increase the number of their outlets in a
city. It is expected that by 2015, India may have 600 new
shopping centres.
10 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
In the Indian retailing industry, food is the most dominating
sector and is growing at a rate of 9% annually. The branded
food industry is trying to enter the India retail industry and
convert Indian consumers to branded food. Since at present 60%
of the Indian grocery basket consists of non- branded items.
India retail industry is progressing well and for this to
continue retailers as well as the Indian government will have
to make a combined effort.
1.2.2 RETAIL IN INDIA: HISTORICAL PERSPECTIVERetailing provides a crucial link between producers and
consumers in a modern market economy. The performance of this
sector has a strong influence on consumer welfare. Retailers
not only provide consumers with a wide variety of products,
but also a wide range of complementary services (such as
assurance of product delivery), which can lead to more
informed choice and greater convenience in shopping. They also
provide producers with much needed information on consumers
demand pattern. Productivity and efficiency in retail
operations lowers price level and reduce distortions in the
price structure. Through backward and forward linkage,
performance of retailing services affects the performance of
interlinked sectors such as tourism, recreational and cultural
services, manufacturing of consumers goods agro-good producing
industries etc.
The present paper is an attempt to explore retailing in India
in Historical perspective. Retailing is the largest private
industry in India and second largest employer after
11 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
agriculture. The sector contributes to around 10 per cent of
GDP and 6-7 per cent of employment. With over 15 million
retail outlets, India has the highest retail outlet density in
the world. This sector witnessed significant development in
the past 15 years – from small-unorganized family-owned retail
formats to organized retailing. Liberalization of the economy,
rise in per capita income and growing consumerism has
encourage larger business houses and manufactures to set up
retail formats; real estate companies and venture capitalist
are investing in retail infrastructure. Many foreign retailers
have also entered the market through different routes such as
wholesale cash-and-carry, local manufacturing, franchising,
test marketing, etc. With the growth in organized retailing,
unorganized retailers are fast changing their business models
and implementing new technologies and modern accounting
practices to face competition. The retailing sector in India
has undergone significant transformation in the past 10 years.
Traditionally, Indian retail sector has been characterized by
the presence of a large number of small-unorganized retailers.
However, in the past decade there has been development of
organized retailing, which has encouraged large private sector
player to invest in this sector. Many foreign players have
also entered India through different routes such as test
marketing, franchising, and wholesale cash-and-carry
operation. With high GDP growth, increased consumerism and
liberalization of the manufacturing sector, India is being
portrayed as an attractive destination for foreign direct
investment (FDI) in retailing. At present this is one of the
12 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
few sectors, which has 51% FDI in multi-brand retail sector &
100% FDI in single brand. On one hand farmers will benefit
from it but on the other hand small traders feel they will not
be able to withstand the competition. In India, the retail
sector is the 2nd
largest employers after agriculture. In fact
due to wide network of retailing in India it is known as
nation of shopkeepers. There are about 12 millions retail
outlet spread across India and the country has the highest
density of shops in the world i.e. one shop for every 20 to 25
families or 11 retail shop for every 1000 persons. While, it
is only four shops per 1000 in USA. Retailing in India
provides employment to about 7% of total work force in the
country and contributes about 14% to GDP of India. However the
retailing sector in India is highly fragmented and consists
predominantly of small, independent and owner managed shop.
The Global Retail Development Index developed by A.T Kearney
has ranked India first among the top 30 emerging markets in
the world. A look at the landscape of most of the cities in
India shows the rapid phase of change. This changes in
reflection of the changes in the Indian consumers his
lifestyle and his habits. Goldman Sachs has estimated that the
Indian economic growth could actually exceed that of China by
year 2015. It is believed that the country has the potential
to deliver the fast growth over the next 50 years. It took 10
years for the first 2500 organized retail stores to emerge in
India; the next 2500 could easily get added in the next 5
years. Formats new to the India market place have emerged
rapidly over the past ten years. There is little doubt that
13 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
retail in India is revelling up for an exciting phase ahead.
1.2.3 EVOLUTION OF RETAIL IN INDIA: The origins of retail are old as trade itself. Barter was the
oldest form of trade. For centuries, most merchandise was sold
in market place or by peddlers. Medieval markets were
dependent on local sources for supplies of perishable food
because Journey was far too slow to allow for long distance
transportation. However, customer did travel considerable
distance for specialty items. The peddler, who provided people
with the basic goods and necessities that they could not be
self sufficient in, followed one of the earliest forms of
retail trade. Even in prehistoric time, the peddler travelled
long distances to bring products to locations, which were in
short supply. They could be termed as early entrepreneurs who
saw the opportunity in serving the needs of the consumers at a
profit. Later retailers opened small shops, stocking them with
such produce. As towns and cities grew, these retail stores
began stocking a mix of convenience merchandise, enabling the
formation of high-street bazaars that become the hub retail
activity in every city.
1.2.4 TRADITIONAL RETAIL FORMAT IN INDIA:It is important that for centuries now, India has been
operating within her unique concept of retailing. Retailing in
its initial period was witnessed at the weekly Haats or
Gathering in a market place where vendors put on displays
their produce. Off course this practice is still prevalent in
many towns and cities in India: then the market saw the
emergence of the Local banias and his neighbourhood Kirana
14 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
shop. In fact these were the common local mummy-daddy or
multipurpose departmental store located in the residential
areas such shops stocked goods and multipurpose utility and
were with the vision of providing convenience at the doorstep
of the consumer.
While barter would be considered to be the oldest form of
retail trade, since Independence, retail in India has evolved
to support the unique needs of our country, given its size and
complexity. Haats, mandis and melas have been a part of India
landscape. They will continue to be present in most part of
the country and form an essential part of life and trade in
various areas.
1.2.5 EMERGENCE OF ORGANISED RETAIL IN INDIA:The emergence of first phase of organized retailing in India
can be traced back when a shopping centre into existence in
the year 1869 with Mumbai Crawford Market. After that, in the
year 1874 Hogg market, popularly and better known as new
market came into existence in Kolkata. This shopping centre
was designed by an East Indian Railways Co. Architect R.R.
Banya and was named after the then municipal commissioner of
Kolkata, Sir Stuart Hogg. Earlier the Hogg market even had a
garden with a beautiful fountain adding to its ambience and
benches too for tired shoppers.
Today, the New Market continues to be a premier shopping area
in Kolkata despite a part of it being incinerated in late
1985. Its redbrick Gothic clock tower today bears testimony to
the past Grandeur of this first shopping centre in India.
Today from linen to cakes and fruits to fishes everything is
15 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
available at the New Market Atta reasonable price and this has
made the New Market sustain its popularity among the metro
customers of Kolkata. The tenant mix of this first shopping
centre is unique as it has a large number of 2000 stalls,
which are organized in an order of merchandize. There are rows
of stalls dealing with one particular line of Goods.
A retail researcher by name Christine Furedy in 70s has
observed in her article in the capital on 24th
Dec. 1979
tracing the emergence of the New Market, thus “The most
complex retail business of late nineteenth century Kolkata,
establishment which were to dominate the modern retail sector,
were the departmental stores. Although everyone has closed its
doors, many Calcuttians still remember the name or recognize
their converted, subdivided building: Francis, Harrison and
Hathaway; Hall and Anderson; the Army and Navy stores; white a
way; laid low and Co. In their scope and outreach these shops
rivalled those to be found in cities of the same size in
Britain, Europe or the United States”.
The second phase of development of organized retailing can be
traced back to the year 1931 when Bata shoe Co. took lead in
opening its chain stores at various cities & towns. DCM and
Raymond’s followed it extensively.
The earliest seed of the so-called specialty malls can be
traced to shopkeepers who stocked goods of the same product
category in a particular locality. If one were to go back to
the early 80s, it can be said that organized retail, to a
great extent was visible in the functioning of stores such as
Akbar Ally in Mumbai and Nilgiris and Spencer’s in Chennai.
16 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
These stores later evolved into multi-chain outlet and were
the first to bring on the ‘onset of organized retail’ in
India.
The evolution of PDS (Public Distribution System) of Grains in
India having its origin in the rationing system introduced by
the British during World War II was example of single largest
retail chain in the country the canteen stores Department and
the Post Offices in India are also among the largest network
of outlets in the country, reaching populations across state
boundaries. The Khadi and Village Industries (KVIC) was set
during post Independence and today it has more than 7000
stores across the country.
While Independence retail stores like Akbar Ally's, Vivek’s
and Nallis have existed in India for a long time, Reliance,
Garden Silk Mills, Madhura Garments, Arvind Mills etc. have
set up show rooms for retail sale of their branded products.
At present India is rapidly evolving in to an existing and
Competitive market place with potential target consumers in
both the rich and middle class segments. Manufacturer owned
and retail chain stores are springing up in urban area to
market consumer goods in a style similar to that of mall in
more affluent countries. Even though big retail chains like
Crossroad, Saga and Shopper’s stop are concentrating on the
upper segment and selling products at higher prices, some like
A.V Birla Retails More, RPG’s Spencer’s, Food World and Big17 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Bazaars are tapping the huge middle class population. During
the past two years, there has been tremendous amount of
Interest in the Indian retail trade from global majors as well
as over the years, International brands like McDonalds,
Swarovski, Lacoste, Domino’s, Pepsi, Benetton among a host of
others have come in and thrived in India.
1.2.6 RETAIL FORMATS IN INDIA:In India, at present, retailing activities are being carried
through wide varieties of formats ranging from ‘pheri wala’ in
streets to Modernized Malls in Metro cities. However from
study point of view these formats can easily classified into
following three Groups.
Fig. 4 : Formats of Retailing
18 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
EMERGING
MORDERN KIOSKSCONVINIENCE STORESDEPARTMENTAL STORESCHAIN STORESFRANCHISESPECIALITY STORESSHOPPING MALL/PLAZA
ESTABLISHED
KIOSKKIRANA SHOPSINDEPENDENT STORESCO-OPERATIVE
TRADITIONAL
ITENEREANT SALESMAN HATS
A) TRADITIONAL FORMATS :
1. ITINERANT SALESMAN : It is a type of direct selling,which stated centuries ago. It is an example of door-to-door
office-to-office delivery or marketing. Morning milk man and
sabji wala are the most famous examples of this category.
This type of format has been very popular throughout India
in coping with daily needs. In rural areas this sales man
use cycles, for carrying their stock for display of Goods.
2. HAATS : Haats are the unique examples of traditionalmalls in India. Just like Malls, different sellers sells
different types of items along with the sale of vegetables,
fruits, sweets, chart etc. Some entertainment arrangements
are also made in available in these haats. There was
tendency in rural as well as semi-urban area in India for
visiting these haats with family members as a part of picnic
cum purchasing programs. In fact Haats are periodic markets
(generally organized once in week or fortnight at a
particular place & time) that form a major part of the rural
market system in India. In other words the term Haats refers
to locations, which witness a public gathering of buyers and
sellers at fixed time, and fixed locations. On account of
organization of these haats these are called with the name
of a particular day also such as Mangal Bazaar, Budh Bazaar
etc. According to one estimate about 42,000 haats are
organized in our country.
3. MELAS : Melas are fairs & they can range from
commodities fairs to religious fairs. Virtually every state
19 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
in India has meals for which it is known. It is estimated
that more than 2500 melas are held annually in the country.
It is also estimated that the average outlets in every Mela
would be more than 800 & the average sale per mela would be
Rs. 143 lakhs. Nauchandi is an example of important annual
mela in Meerut, at many places such as Gwalior, Aligarh,
Bulendshahr annual exhibitions are organized. At government
level, a number of fairs such as book fair, trade fair and
specific commodity fair are organized by Trade Fair
Authority of India.
4. MANDIS : Mandis are markets set up & regulated bystate government for the sale of agricultural produce
directly from farmers. At present the number of such markets
stand at 7521. These mandis are playing significant role in
providing better prices to farmers.
B) ESTABLISHED FORMATS :
1. KIOSKS : A kiosk is a small freestanding pavilion or
stall often open on one or more sides and used for
information sales and promotion. Generally a kiosks is
placed in a shopping centre, a bus stand or near by the
prospective customers.
2. KIRANA SHOP & INDEPENDENT STORES : This is one of theimportant & popular established formats of retailing in India.
These shops are usually shops with a very small area, stocking
a limited range of products, varying from region to region
according to the need of the clientele or the whims of the
owners.
These are low cost structures mostly owner operated, have
20 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
reliable real estate & labours cost. Consumer familiarity that
runs from generation to generation is one big advantage
enjoyed by such Kirana Shops.
It is worth mentioning that India retail sector has
traditionally been structured around 3 small retail entities –
the grocer, the general store and the chemist. The grocer
stocks non-packaged, unbranded/Generic commodities such as
rice, floor, pulses, spices, salt etc. for sale. The Grocery
Stores or Kirana shops located in neighbour-hood centres also
sale branded & packaged fast moving consumer goods.
The General store stocks only branded & packaged FMCGs. These
are generally located prominently in the neighbourhood centre
& residential areas. Chemists are a part of dispensing
pharmaceutical. Products, sales branded FMCGs such as personal
Carrier Products & health food. Alongside the three retail
outfit, exist a large segment of smaller, unorganized players
- paan, beedi stores which stock products in sachets,
batteries, confectionary & soaps, bakery & confectioners,
fruit juice/tea salts, ice-cream parlour, electrical,
furniture & hardware stores.
Kirana shops & independent small stores provide a wide variety
of facilities to their customers, such as telephone order
credit facilities, home delivery, customization on account of
offerings & packaging & specific products produced on order in
case of stock out. More importantly they’re available next
door to offer personalized service. In this way their able to
develop a strong relationship with their customer, who over a
period of time, become extremely loyal.
21 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
3. SUPER MARKETS/HYPER MARKETS : These are large (90,000square feet plus) self-service stores selling a variety of
products at discounted price. The best practice chains in this
format are Carrefour (France) Wal-Mart (US). Supermarkets tend
to be located in key residential markets and malls and offer
competitive prices due to economics of scale in logistics and
purchasing. The format is new to India and some important
players in this field are Food World, Big Bazaar. Indian Super
Market are smaller than others countries.
4. DEPARTMENTAL STORES : These large stores primarily sellnon-food items such as apparel, footwear household products.
They stock multiple brands across product categories, though
some of them focus as their own store labels. Departmental
stores are found on high streets and as anchor shops of
shopping malls. Some department stores chains are opened in
India e.g. Shopper’s stop, Westside and Ebony.
5. SPECIALTY CHAINS : These outlets focus on a particularbrand as product category, usually non-food items and are
located on high streets and in shopping malls. The most famous
specialty chains include Gap, Levi’s and Benetton.
6. DISCOUNT STORE : It is a general merchandise retailerthat offers a wide variety of merchandises limited service and
low prices. Subhiksha and Margin free markets are operating in
this format in India.
7. WHOLESALE CASH AND CARRY : The wholesale cash and carryoperation is defined as any trading outlets where goods are
sold at the wholesale rate for retailers and business to buy.
The transactions are only for the business purpose and not for
22 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
personal consumption. Metro, cash and carry, Gmbh of Germany
entered the India in this format.
8. CONVENIENCE STORE : It is a retail business of lessthan 5,000 square feet with primary emphasis on providing the
public a convenient location to quickly purchase an assortment
of food, gasoline and other consumable products. They are
usually open seven days a week for extended hours
C) CO-OPERATIVE SHOPS/GOVT. ORGANISATION :Cooperative stores in India are the result of the cooperative
movement that can be traced to the Pre-independence period.
They emerged as a reaction to the feudal system & attempted to
place the fruit of labour in the hands of the producer himself
to make him relevant. The Cooperative movement was
strengthened after independent in Western India?
A consumer cooperative is a retail institution owned by member
customers. A consumer cooperative is generally formed either
because of dissatisfied consumers who's needs are not
fulfilled by the existing retailers or on account of
initiative by enlightened consumer.
D) MOTHER DAIRY, DELHI & FRUIT & VEGETABLE
PROJECT, DELHI :Mother Dairy, Delhi & the fruit & vegetable project Delhi, set
up by the National Dairy Development Board in 1974, 1986,
respectively, were merged to form Mother Dairy Fruit &
Vegetable Limited in April 2000.
23 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
The new Company, a wholly owned subsidiary of NDDB, is
involved in marketing & distribution of milk, milk products &
horticulture produce. The companies’ dairy plant handles more
than 1.3 million litres of milk daily & undertakes its
marketing operations through 636 own milk shops & more than
6500 retail outlets in and around Delhi. Ice-creams market
The company market horticulture produce in fresh, frozen &
processed from under the brand named 'SAFAL' through a chain
of 263 own fruit & vegetable shops & more than 20000 retail
outlets in various parts of the country. Fresh produce from
the producers is handled at the Companies modern processing
facility in Delhi with an annual capacity of 120000 MT.
A state of the art fruit processing plant, a 100% EOU, set up
in 1996 at Mumbai, supplies quality products in the
international market. The Companies unique distribution
network of bulk vending booths, retail outlets & mobile units
gives it a significant competitive advantage.
It is worth mentioning that the consumer cooperative structure
in the country has 4 tiers, with the National Cooperative
Consumer Federation of India Ltd. (NCCF) at the national
level. Thirty State Cooperative Consumers Organization are
affiliated to the NCCF, the central/wholesale level there are
800 consumer cooperative stores. At the primary level, there
are 21,903 primary stores. In the rural area there are about
44,418 village level Primary Agricultural Credit Societies &
Marketing Societies undertaking the distribution of consumer
goods along with their normal business. In the urban & semi-
urban areas, the consumer cooperative societies are operating
24 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
about 37,226 retail outlets to meet the requirement of the
consumers.
Established formats of retailing in India also include certain
retail organizations initiated & promoted by Govt. They
include Canteen stores, department, CCIE, KVIC and various
cottage & Handicraft Emporium. The canteen store department
has opened Canteen for Army persons & Govt. employees
providing consumer goods at constitutional prices. It has
about 3400 outlets throughout the country.
E) PDS/FAIR PRICE SHOP :The PDS or Public Distribution System would easily emerge as
the single largest retail chain existing in the country. The
evolution of PDS of Grains in India has its origin in the
rationing system introduce by the British during World War II.
The system was started in 1939 in Bombay & Subsequently
extended to other cities and towns. By the year 1946, as many
as 771 cities/towns were covered. The system was abolished
post war, however, on at attaining Independence India was
forced to reintroduce it in 1950 in the face of renewed
inflationary pressures in the economy.
The system, however, continued to remain an essentially urban
oriented activity. In fact, towards the end of the First 5-
year plan (1956) the system was closing its relevance due to
comfortable food grains availability. At this point in time,
PDS was reintroduced and other essential commodities like
sugar, cooking coal & kerosene oil were added to the commodity
basket of PDS. There was also a rapid increase in the Ration
shop and their number went up from 18000 in 1957 to 51000 in
25 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
1961. Thus, by the end of the second 5 year Plan, PDS had
changed from the typical rationing system to a social safety
system, making available food grains at a 'fair-price' so that
access of household to food grain could be improved & such
distribution could keep a check on the speculative tendencies
in the market. The PDS has been functioning for more than 4
decades now and its greatest achievement lies in preventing
famines in India.
F) CONVENIENCE SHOPS :These shops are relatively small shops that are located near
residential areas, are open for long house & 7 days a week and
offer a limited line of convenience products like beverages,
ready to eat snack (Pastry, Sandwiches) bread, eggs, milk,
confectionary etc. These shops have been quite common
throughout the country.
G) SPECIALTY SHOPS :A Specialty shop is a retail shop displaying merchandise,
which has narrow product line, specializing in a particular
type of merchandise & offering, specialized service to
customers. Generally these shops concentrate on a specific
item such as Appeal, Jewellery, Fabric, Sporting Goods, and
Furniture etc. Specialty shop can be sub classified by the
degree of narrowness in their product line. E.g. a clothing
stock would be a single line shop, a men’s clothing shop would
be limited time shop & a men’s shirt store would be a super
specialty shop. Such shop have always played significant role
in relating of consumer durables throughout the country but
particularly in urban & sub-urban areas.
26 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
1.2.7 RURAL MALLS HAVE MADE A BEGINNING:Rural retailing is an important segment of the retail industry
and it is only lately that companies are making investments in
this area. ITC launched Chaupal Sagar, the first rural mall,
with a variety of products and offering farmer’s tools to
adapt to new technologies and methods of farming and selling
their produce. The DCM Sriram Group has opened a Hariyali
Bazaar, offering farm-related services and plans to increase
their product line to a full-fledged grocery store. Godrej
Group has opened Adhaar, a one-stop shop for farmers, focusing
on farm related products. Escorts and Tata Chemicals are also
in the process of setting up agri-stores targeting the rural
market
1.2.8 HYPERMARKETS:In commerce, a hypermarket is a superstore combining a
supermarket and a department store. The result is an expansive
retail facility carrying a wide range of products under one
roof, including full groceries lines and general merchandise.
In theory, hypermarkets allow customers to satisfy all their
routine shopping needs in one trip.
It is often a very large establishment; hypermarkets offer a
large variety of products such as appliances, clothing and
groceries.The hypermarket appeared first in France at the beginning of
the sixties as a synthesis of the main features of modern
retailing. But in France, the decline of this retail format
seems to have begun and Spain could follow quickly. In the
same time, the German hard-discounters continue their
27 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
invasion. According to the retail life cycle theory, this
paper displays curves to demonstrate the evolution of this
retail concept in France, Spain and Italy and tries to evoke
some managerial and strategic issues. The retail wheel seems
to go on turning!
1.2.9 HISTORY OF HYPERMARKET:At the end of the 1950's and at the beginning of the 1960's,
many French retailers came to United States to listen to
Bernardo Trujillo, director of the International Management
Systems Seminars. One of his arguments during his seminars on
modern retailing was: “No parking, no business”. Most of these
French retailers came back to France very enthusiastic. A new
concept then was launched in the French market: the
hypermarket.
The hypermarket was defined as a retail concept with a floor
space over 2,500 m2. Every kind of products was supposed to be
sold through self-service techniques even though there are
today exceptions. Despite several bank support refusals, the
families Fournier, Badin, and Defforey, native from
Switzerland, decided to open the first hypermarket. It was in
the Southern Paris in 1963 under the name Carrefour. Its size
was exactly 2,500 m2. This first hypermarket was immediately a
big success.
Ten years after, there were more than 250 hypermarkets in
France. Today, there are more than 1,300 hypermarkets in this
country. And the group Carrefour, composed of several chains,
is now the second world largest retailer after Wal-Mart. This
public company has more than 10,000 stores in the world today
28 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
located in more than 30 countries. Carrefour began its
internationalization process very early in the 1970's. The
group is present of course in Europe but also in South and
Central America, and in North Africa. In Asia, Carrefour is
very successful in China and Thailand but not in Japan where
they located only four hypermarkets at this time.
BIG BAZAAR
Type Public
Industry Retailing
Founded 2001
Headquarters Mumbai, Maharashtra, India
Products Hypermarket
Revenue 11500 crores (US$1.8 billion) crores (in 2014) (Big Bazaar and Food Bazaar combined)
Employees 36000 people
Parent Future Group
Divisions 214
Website http://www.pantaloonretail.in/businesses/big-bazaar.html
1.3 COMPANY PROFILE
29 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Tab. 3 : Company Profile of Big Bazaar
Big Bazaar is the largest hypermarket chain in India. As of
June 2, 2014 there are 214 stores across 90 cities and towns
in India covering around 16 million m2 of retail space. Big
Bazaar is designed as an agglomeration of bazaars or Indian
markets with clusters offering a wide range of merchandise
including fashion and apparels, food products, general
merchandise, furniture, electronics, books, fast food and
leisure and entertainment sections.
Big Bazaar stores are aimed at providing a local marketplace
feel to the shoppers. They offer a wide variety of household
items including retail apparels, food products, general
merchandise, furniture, electronics, books, fast food, etc.
Several stores also have leisure and entertainment sections.
The hypermarket chain crossed the 100 store mark in 2008.
Future Bazaar is an online business venture of Future Group,
which sells an assortment of products such as fashion, which
includes merchandise for men and women, mobile accessories,
mobile handsets and electronics like home theatres, video
cameras, digital camera, LCD TVs, kitchen appliances and many
more.
Discounts: “Hafte ka sabse sasta din was introduced by
the Big Bazaar, wherein extra and special discounts were
30 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
offered on Wednesday every week, to attract the potential
buyers into their store.
Security check: At each exit of Big Bazaar, they use
alarm systems or Electronic Article Surveillance system,
which detects the products that has attached tags or not.
FUTURE GROUP ALSO OWNS
Central Hypermarket
Brand Factory
Pantaloons
e - ZONE
31 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Hometown
futurebazaar.com
KB's Fair Price
.
1.3.1 HISTORY
2001 to 2010
Big Bazaar was introduced by the Future Group in September
2001 with the opening of its first four stores in Kolkata,
Indore, Bangalore and Hyderabad within a period of 22 days.
Started by Kishore Biyani, Big Bazaar was launched mainly as a
fashion format selling apparel, cosmetics, accessories and
general merchandise. Over the years, the retail chain has
included in its portfolio a wide range of products and
services, ranging from grocery to electronics.
The current retail formats of the Future Group include Big
Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar.
32 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
According to Kishore Biyani, the inspiration behind this
entire retail format was from Saravana Stores, a local store
in T. Nagar, Chennai. Big Bazaar is popularly known as the
‘Indian Wal-Mart’ today.
In the second year of operations, Big Bazaar tied up with
Indian banking giant ICICI Bank and launched the Big Bazaar
ICICI Bank Card. In the same year, the first Food Bazaar store
was also launched at High Street Phoenix mall in Mumbai,
marking the retailer’s entry into dedicated food retail.
In 2003, Big Bazaar made its foray into small towns and
cities. The first store in this category was launched that
year in Nagpur. The franchise also welcomed its 10 millionth
customer at its new store in Gurgaon in the same year.
Over the next two years, Big Bazaar consolidated its position
in the Indian retail landscape. This phase of growth included
the setting up of the Mumbai store in Lower Parel, which
registered a record Rs 10 million turnover in a single day on
Diwali-eve in 2004. In 2005, the first Big Bazaar Exchange
Offer was launched, which has quickly gained popularity among
customers.
In 2006, further changes in loyalty marketing took place with
the launch of the housewife-centric credit card, Shakti.
Jewellery store ‘Navaras’ was also launched that year within
Big Bazaar stores which became the first store-in-store
concept to be launched by the brand. Another dedicated retail
format launched in 2006 is Furniture Bazaar.
33 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
In 2007, Big Bazaar partnered with a shopping portal
Futurebazaar.com and expanded its retail footprint to 50
stores.
The following year, 2008, witnessed by far the fastest growth
in terms of retail expansion for Big Bazaar, with the launch
of the 101st store. Joining the league of India’s Super brands
and voted among the top ten service brands in the country by
the Pitch-IMRB international survey, Big Bazaar became much
more than a household name.
The year also saw the launch of the Monthly Bachat Bazaar
(Monthly Budget Market) campaign, which provided significantly
low prices and gave discounts on bulk purchases in the first
week of the month.
Over the next two years, Big Bazaar carved its own niche in
modern retail and became the largest brand in the hypermarket
format. Capturing one-third of the food and grocery market in
modern retail, celebrity endorsements and tie-ups with other
brands allowed it to enhance its retail footprint. In 2009,
Big Bazaar won the CNBC Awaaz Consumer Awards for the third
consecutive year. It was adjudged the Most Preferred Multi
Brand Food & Beverage Chain, Most Preferred Multi Brand Retail
Outlet and Most Preferred Multi Brand One Stop Shop.
2010 to present
On successful completion of 10 years in the Indian retail
industry, in 2011, Big Bazaar came up a new logo with a new
tag line: "Naye India Ka Bazaar.
In 2012, Big Bazaar signed a multi-million dollar deal with
Cognizant Technology Solutions for the development of an IT
34 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
infrastructure, encompassing Future Group’s entire network of
stores, warehousing and data centers.
Recently, Big Bazaar announced its plans to add more retail
services to its portfolio such as grinding, de-seeding and
cutting of fruits and vegetables.
1.3.2 OPERATIONS
Various formats and store concept
Most Big Bazaar outlets are multi-leveled stores and are
located in stand-alone buildings in city centers as well as
within shopping malls. These stores have more than 2,00,000
Stock Keeping Units (SKU) in a wide range of categories, led
primarily by fashion and food products. The retail space of
these stores in the metros range between 50,000 and 1,60,000
sq. ft. Since its launch in 2001 in metro cities like Kolkata,
Bangalore and Hyderabad, Big Bazaar is the largest Hypermarket
chain with presence in 90 cities and towns across the country
1.3.3 CSR ACTIVITIES
As a part of Future Group, Big Bazaar is involved in various
social activities that include green initiatives for the35 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
community, blood donation camps, Diwali celebrations with
orphanages, visits to orphanages and other NGOs helping
underprivileged children. These activities usually involve all
members of the management as well as staff of Big Bazaar.
• In September 2011, Future Group signed a strategic
partnership with the Himachal Pradesh Government to directly
source, market and promote the state’s products and services
through its Big Bazaar stores under the brand ‘Himachal’. The
aim of this partnership is to aid the development of various
‘source-to-market’ initiatives to enhance livelihoods for more
than 25,000 families in the state.
• Big Bazaar created a platform called Yatra to provide women
of self-help groups across various towns and regions of
Maharashtra and Gujarat the opportunity to market their wide
assortment of indigenous food and non-food products. As part
of the programme, women from over 30 regional self-help groups
were invited, encouraged and helped to set up stalls to
exhibit their products at Big Bazaar stores.
• Big Bazaar Mysore started offering a free wholesome meal to
all its customers, who in return contribute ‘Shraddha Anussar’
for a community cause. In other words, the customers donate
any amount for the meal which would be used for a local,
regional or topical cause.
1.3.4 SCHEMES & INNOVATIONS
The introduction of ‘Sabse Sasta Din’ (Cheapest Day) in the
year 2005 was a turning point for the Big Bazaar franchise. As
part of this effort, the Republic Day holiday was used to
36 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
ensure that consumers visited Big Bazaar outlets across the
country in large numbers to get required household items at
cheaper rates.
Taking cue from this highly successful concept, another
initiative was introduced, named the ‘Purana do aur naya lo’
(give old and get new) scheme. In this scheme, consumers were
asked to bring and sell old clothes, utensils and other
household items in exchange of discount coupons.
The concept proved to be a success yet again as people from
across the country responded spontaneously, in spite of the
different preconditions associated with it.
The franchise further inaugurated the concept of ‘Hafte ka
sabse sasta din’ (Cheapest Day of the Week), wherein Wednesday
was designated to be the day when special discounts were
offered to consumers during a week.
Wednesday Bazaar
The concept of Wednesday Bazaar was promoted as ‘Hafte Ka
Sabse Sasta Din’ (Cheapest Day of the Week). Initiated in
January 2007, the idea behind this scheme was to draw
customers to stores on Wednesdays, the day when consumer
37 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
presence is usually less. According to the chain, the aim of
the concept was ‘to give homemakers the power to save the
most’.
Sabse Sasta Din
Big Bazaar introduced ‘Sabse Sasta Din’ (Cheapest Day) with
the intention of attaining a sales figure of Rs 26 crores in a
single day. The concept became such a hit that the time period
for the offer had to be increased from one day to three days
in 2009 (January 24 to 26) and to five days in 2011 (January
22 to 26).
Maha Bachat
38 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
The concept of ‘Maha Bachat’ (Mega Saving) was introduced in
the year 2006 as a single day campaign with attractive
promotional offers across the company outlets. Over the years,
the concept has grown to become a six-day biannual campaign.
During this campaign, attractive offers are given in all the
value formats including Big Bazaar, Food Bazaar, Electronic
Bazaar and Furniture Bazaar.
The Great Exchange Offer
Introduced on February 12, 2009, ‘The Great Exchange Offer’
allows customers to exchange their old goods for Big Bazaar
coupons. The coupons can be redeemed later for buying brand
new goods from Big Bazaar outlets across the nation.
1.3.5 ADVERTISING CAMPAIGNS & MARKETING INITIATIVES
In view of the increasing competition in the retail market,
Big Bazaar has introduced certain steps to keep itself updated
and continue promoting the band.
39 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Advertising initiatives
Big Bazaar has recently launched a 360-degree promotion drive
covering the three prime media, television, print and social
media, to mark the launch of the new logo. The entire media
campaign was developed by Mudra Communications as Big Bazaar
celebrating April Utsav on 2013. They Offering Rs. 50 off on
Rs. 500 or Rs. 100 off on Rs. 500 or Rs. 200 off on Rs. 500
coupon through missed call.
1.3.6 STRATEGY USED IN BIG BAZAAR
3-C Theory
According to Kishore Biyani's 3-C theory, Change and
Confidence among the entire population is leading to rise in
Consumption, through better employment and income which in
turn is creating value to the agricultural products across the
country.
Big Bazaar has divided India into three segments:
1.India one: Consuming class which includes upper middle
and lower middle class (14% of India's population).
2.India two: Serving class which includes people like
drivers, household helps, office peons, liftmen, washer
men, etc. (55% of India's population) and
40 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
3.India three: Struggling class (remaining 31% of India's
population).
Fig. 5 : Strategies Used in Big Bazaar
While Big Bazaar is targeted at the population across India
one and India two segments, Aadhaar Wholesale is aimed at
reaching the population in India three segment. With
this, Group emerged as a retail destination for consumers
across all classes in the Indian society.
1.3.7 FOUR P’S OF BIG BAZAAR
PRODUCT MIX
41 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
INDIA TWO (55%)INDIA THREE (31%)INDIA ONE (14%)
Fig. 6 : Product Mix
PRICE MIX
Value Pricing (EDLP) Promotional Pricing Low Interest Financing Psychological Discounting Special Event Pricing Differentiated Pricing Time Pricing Bundling
PLACE MIX
Initially Identifies Future/Potential development areas. Acquire such areas at an early phase before the real
estate value booms. Located at high traffic areas. Design to look crowded.
42 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
APPARELS
Denims & ShirtsFabricsFormal WearCasual Wear
HOME CARE
ShampoosDetergents Soaps Liquid Wash
CHILL STATION
Soft DrinkPackaged Juices Milk Items Frozen Foods
FARM PRODUCE
FruitsImported FruitsVegetablesDairy Products
PROMOTION MIX
“Saal Ke Sabse Sasta 3 Din” Future Card(3%Discount) Advertising(Print ads, TV Ads, Radio) Brand Endorsement by M.S Dhoni Exchange Offer Weekend Discount Point of Purchase Promotion
1.4 PR ODUCTS PROFILE
The product profile of Big Bazaar is as follows. They are
dealing with various types of products and so they had divided
them into various departments for the customer’s convenience.
The departments are:
43 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
FOOD BAZAAR
HOME CARE PRODUCTS
HEAD TO TOE
FIT & HEALTHY
BOOKS & STATIONARIES
APPARELS & GARMENTS
MEN & WOMEN ACCESSORIES
KIDS ACCESSORIES
CROCKERY & PLASTIC ITEMS
UTENSILS
HOME DECORS
HOME LINEN
GIFTS
BAGS & TRALLIES
FURNITURES
ELECTRONIC GOODS
FOOT WEARS
1.5 COMPETITORS PROFILE
44 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Big Bazaar faces competition from other retailers of similar
products & services. These include stand alone stores in the
organised & unauthorised sector, as well as other chain of
stores including Department stores.
It is because of this and the service and ambience that Big
Bazaar believes have been able to create a differentiation in
the mind of the customer vis-a-vis our competitors where
similar products and Brands are available.
COMPETITORS OF BIG BAZAAR
More
Easy Day
Lifestyle International
Reliance Trend
Wal-Mart
Reliance
Shoppers stop
Vishal Mega Mart
Local retailers
Spencer's
Reliance Fresh
45 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
2.1 ORGANIZATION STRUCTURE
47 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
PRESIDENT
VICE PRECIDENT
MARKETING MANAGER HR MANAGER FINANCE
MANADERCATEGORIYMANA
GEROPERATION
HEAD
MAEKETING HEAD HR HEAD CATEGORIHEAD FINANCE HEAD STORE
MANAGER
Fig. 7 (i) : Zonal Organization Structure
48 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
CSD
HRMANAGER
ADMINISTRATION
LOGISTICS
MARKETING
SALESMANAGER
ASST STORE MANAGER
STORE MANAGER
DEPT MANAGER
TEAM MEMBERS
Fig. 7 (ii) : Organization Structure of Big Bazaar
49 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
MAINTANCE
HOUSR KEEPING
CASHIERS
TEAM LEADER
Security
ASST DM
Chapter 3
FunctionalDepartments
50 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Fig. 8 : Functional Department
3.1 Human Resource Department
51 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
FUNCTIONALDEPARTMENTS
SUPPORT SYSTEM
DEPARTMENT
ADMINISTRATION
DEPARTMENT
CUSTOMER SERVICE DESK
MAINTENANCE DEPARTMENT
LOGISTICS DEPARTMENT
FINANCE DEPARTMENT
HUMAN RESOURCE
DEPARTMENT
MARKETING DEPARTMENT
SALES DEPARTMENT
The HR department of Big Bazaar is very dynamic. Employees are
the biggest Strength and asset of any organization and the HR
dept. realises this very well. This is very evident from the
way the HR department handles all its employees. They take
utmost care to select, train, motivate and retain all tile
employees. They have continuous developmental programmes for
all the employees.
Currently Big Bazaar Malleshwaram is employing 220 full time
and 60 part time employees. There are two shifts for the
employees. The first shift employees arrive at 9am in the
morning and leave at 7.30 in the evening, while the second
shift employees report at 1:30 and leave at the time of store
closing which is 10pm.
3.2 Customer Service Desk (CSD)
Every service industry today has a desk where customers can
express their problems and get them resolved. Similarly in
retail stores, the customer services desk acts as the face
of the organization and listens to customers' problems and
builds their trust on the organization. Thus it is important
for all stores to have a customer service desk. Customers may
approach the customer service desk (CSD) with various types
of queries which may range from asking 'where the wash rooms
are' to 'what is the telephone number of the CEO of the
52 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
organisation: All such queries should be answered by the CSD
with a smile on their face and an acceptable body language.
3.3 Administration
Safety is always a concern for any business specially safety
of the customers and staff. Also, it is very essential that a
store is well maintained, clean and tidy. The administration
department is in charge of the security, housekeeping, packers
and loaders. They handle the police interaction whenever
required.
53 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Fig. 9 : Administration Department
The housekeeping staffs have to maintain cleanliness of the
stores and the departments. They must make sure that cleaning
of the floors is done from time to time during a day. The
security manages the entry and exit of the customers,
protection against theft at the stores, etc. Strict checking
is done before a customer or employee enters the store and at
the time they are leaving.
Every product has a security tag that will prevent the
customers from smuggling the product out of the stores without
paying for it. There are 3 kinds of tags: hard tag, soft tag
and string tag. These tags help to keep a track of the product
and prevent theft.
54 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Admin Head
Admin Assistant(2 people)
Houskeeping Security Maintance
3.4 Logistics
Logistics is considered to be the complete process involving
planning, managing and controlling the flow of goods and
services, information, real-time data and human resources from
the point of origin to the point of destination. There is
hardly any manufacturing or marketing activity that can be
achieved without the support of an effective logistical
department.
The logistics process consists of the process of integration
of several aspects such as material handling, warehousing,
information, transportation, packaging and inventory. The
primary duty of an effective logistics system is to ensure
geographical repositioning of unfinished goods, and it is also
concerned with the finished inventories of the organization
being at the required place at the lowest possible cost.
The various tasks performed by the department may be
summarized as follows:
Ensuring all the requirements of the customers are met on
time in an efficient and safe manner.
To coordinate with third party logistics (3PLs).
To ensure that there is a safe and timely dispatch of
goods.
To draft plans, policies and procedures for successful
implementation of logistics system.
55 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
To ensure that the business goals of the organization are
in synchronization with logistics system.
To create and maintain customer support.
To maintain coordination with vendors, service providers
and transport carriers.
To ensure that no fraud is committed.
To ensure timely supply and reduce inventories.
3.5 Marketing Department
Marketing concept is a customer orientation backed by
integrated marketing aimed at generating customer
satisfaction as the key to satisfying organizational goals.
For a firm in order to implement the marketing concept it
has to focus its attention on the consumer, ascertain
his/her needs, discuss and wants before
Every Brand appeals to individual customers in different
ways. Good customer service is the life blood of any
business. Good customer service is all about attending to
existing and potential customers. This maintaining good
relationship with the customers is the key to business
success and hence the concept relationship marketing.
56 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Traditionally, marketers have located their target market
segments, presented their offer, and made the sales. It's
always been a single step process. Relationship marketing
looks at customers and clients over a longer term
3.6 Sales Department
This department is responsible for the collection of sales
amount i.e., cash sales. There are in all 25 cash counters
in the Store. There is a Head Cashier to whom all the
cahiers report and submit the total sales amount collected
throughout the by the cashiers. In addition to cash all
leading credit and debit cards are accepted at no extra
charge. Also Big Bazaar vouchers and Sodexho coupons are
also accepted.
57 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Chapter 4
ETHICAL/BEST PRACTICES/POLICIES IN THE ORGANIZATION58 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Fig. 10 : Core Values
1. INDIANNESS: Confidence in ourselves.
2. LEADERSHIP: To be leader both in business & thought.
3. RESPECT & HUMILITY: To respect every individual & behumble in our conduct.
4. INTROSPECTIVE: Leading to purposeful thinking.
5. OPENNESS: To be open to receptive to new ideas, knowledge& information.
6. VALUING & NATURING RELATIONSHIP: To build long termrelationship.
7. SIMPLICITY & POSITIVITY: Simplicity & positivity in ourthought, business & action.
59 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
INDIANNESS LEADERSHIP RESPECT & HUMILITY
INTROSPECTIVE OPENNESS
VALUING & NATURING
RELATIONSHIP
SIMPLICITY &
POSITIVITYADAPTABILIT
Y FLOW
8. ADAPTABILITY: To be flexible & adaptable to meetchallenges.
9. FLOW: To respect & understand the universal laws ofnature.
5.1.2 QUALITY POLICY:
Fig. 11 : Quality Policy
(A) PRICE GUARANTEE: In within 2 days of purchase if a
customer finds a product of same brand or quality available at
lesser price, the customer can bring it back within 10 days
with the cash memo & we will show the price difference.
60 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
PRICE GUARANTEE
QUALITY GUARANTEE
EXCHANGE GUARANTEE
(B) QUALITY GUARANTEE: All products sold at Big Bazaar are
guaranteed to be at a good price & of good quality.
(C) EXCHANGE GUARANTEE: The exchange of any product that
have been bought from Big Bazaar & are not satisfied by the
customer can be return back with the cash memo within 15 days
from purchase.
Chapter 461 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Fig. 12 : SWOT Analysis
STRENGTHS:
High brand equity.
Better understanding of customers helping the company to
serve them better.
Vast range of products under one roof helping in aerating
customer & their family.
Diversified business operating all over India in various
retail formats.
Ability to get products from customers at the rate of
discounted price due to the scale of business.
Professional management.
Good employee & employer relationship.
Strong cultural ethics & values are followed.
63 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Provides loans for purchase of furniture & electronic
products.
Provides home delivery facilities to customers
WEAKNESSES:
High cost of operation due to large fixed cost.
Specific items are not consistently available.
Poor supply chain management & weak support
infrastructure
Unable to meet store opening targets.
Unavailability of popular brand items with regard to
clothing.
Weak in technology.
OPPORTUNITIES:
Population of the country is growing where the scope of
the market is kept on increasing for the retail sector.
Can enter into the production of various products due to
its in depth understanding of customer’s taste &
preference.
Growth in the income of the customers.
Expand their business at global level.
Provide quality services to the customers.
THREATS:64 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Lot of competitors coming up to tap the market potential.
Shrinkage
High business risk involved.
Advancement of technology day by day.
CHAPTER 665 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
McKinsay Seven Model Discussion6.1 The Seven Elements
The McKinsey 7S model involves seven interdependent factors
which are categorized as either "hard" or "soft" elements:
Hard
Elements
Soft
Elements
Strategy
Structur
e
Systems
Shared
Values
Skills
Style
Staff
Fig. 13 : McKinsay Elements
66 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
"Hard" elements are easier to define or identify and
management can directly influence them: These are strategy
statements; organization charts and reporting lines; and
formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to
describe, and are less tangible and more influenced by
culture. However, these soft elements are as important as the
hard elements if the organization is going to be successful.
The way the model is presented in Figure 6.2.6 below depicts
the interdependency of the elements and indicates how a change
in one affects all the others.
Fig. 14 : McKinsay 7s Model
6.2 MC KINESEY’S 7 S MODEL
The 7 S Framework of Mc Kinsey is a model that describes 7
factors to organize a company in a holistic and effective way.
67 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Together these factors determine the way in which a retail
store operates. Store Manager should take into account all
seven factors, to be sure of successful implementation of
strategy. Richard Pascal and Anthony Athos first mentioned the
7-S Framework in “The Art of Japanese Management ’’ in 1981.
6.3 McKinsey’s 7s frame work with reference to organization.
STRATEGY
The business strategy of Big Bazaar Retail has been to capture
the entire consumption space of the Indian consumers. The
company has moved from one retail business to another, keeping
in pace with the changing needs and aspirations of the Indian
consumer. The company which primarily started as a garment
retailing company has moved into multiple businesses on the
backdrop of the endless opportunities being provided by the
growing Indian economy.
The company has adopted a strategy of catalyzing consumption
and not just capturing it. The company follows a strategy of
discovering new customers, new markets, new geographies and
new business possibilities.
STRUCTURE
“Structure” is the organizational structure or the hierarchy
of the organization that comprises of the authority,
responsibility and relationships in the firm. This function of
68 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
framework is concerned with direction of the delegation of
authority, organizational structure whether flat or tall and
the degree of centralization or decentralization.
Fig. 15 : Organization Structure
SYSTEM
Considering this scale of expansion, technology plays a
significant facilitating role. The introduction of SAP in
2005-06 and its roll out during the year positively impacted
the business. Big Bazaar has initiated the process of Auto
Replenishments Systems, thus improving operational
efficiencies and productivity. The company has also
rationalized nearly 250 vendors through better vendor
management in terms of potential to expand, and for inclusion
and up gradation to the online B2B platform.
STAFF
69 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
UNIT HEAD(STORE KARTA)
ASSISTANT STORE KARTA
FACILITIES
ADMINISTRATION
MAINTENANCE
SUPPORT STAFF
CUSTOMER SEVICE DESK
HEAD CASHIER HUMAN
RESOURCE
LOGISTICS
Big Bazaar has been successful in keeping its workforce of
25000 highly satisfied and motivated. The company has an
attrition rate of 8.12%, much below industry levels.
Big Bazaar would not have been able to expand and have the
same level of success without hiring and taking care of
quality employees. Some of Pantaloon human resource activities
include employee advancement, employee recruitment on college
universities, and employee training and development.
Additionally, while most firms in retail facing talent crunch.
Big Bazaar has tied up with various college and institutes to
ensure it has fresh supply of talent at its disposal. Close to
46% of the employees in the organization are women and the
average age within the organization is 27 years.
The company has a adopted a policy of collaborating on joint
degree programs with 15 management schools, design institutes
and institutes of higher learning in areas like food business,
supply chain management, design experience management etc.
This ‘Seekho’ programme for the external and internal
candidates ensures a steady stream of mid-level, well trained
retail professionals every year. The company’s ‘Gurukool’
programme provides the front-end employees an opportunity to
imbibe the company’s values and a sense of ownership to the
company.
SKILLS
Pantaloon by tying with various management institutes in India
has ensured that it has sufficient inflow of managerial skill
required. In addition to that the human resource department
70 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
undertakes various training and development programs to ensure
that the employees have the necessary skills to discharge
their responsibilities.
Also another area where Pantaloon scores over its competitors
is its bargaining skills. It has been able to ensure higher
margins for itself from the suppliers. Also the supply chain
skills of the company are among the best in the Indian retail
sector. The company carefully rationalizes its vendors. For
instance, Pantaloon buys its dry staples directly from millers
for its Food Bazaars; it is now experimenting with contract
farming, too, to lower its cost structure.
STYLE
At Pantaloon, empowerment and freedom of work is clearly
apparent. This can be seen with various category managers at
each store level being empowered with taking all decisions
with respect to their departments from deciding inventory
levels to placing replenishment orders. Out of the Box
thinking has become a way of life at Pantaloon and living with
the change, a habit. Such a culture in necessary to go in line
with the organizational strategy of exploiting changing
consumer aspirations. In the quest of creating an Indian model
of retailing, Pantaloon has taken initiatives to launch many
retail formats that have come to serve as a benchmark in the
industry. The management is very dynamic and does not focus or
71 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
focus of predicting future but rather believes in creating the
future.
SHARED VALUES
The Future group as the name suggests believes in exploring
areas yet unexplored. Writing rules yet unwritten as well as
creating new opportunities have been the building blocks of
its success. The group does not believe in waiting for the
future to unfold itself rather it believes in creating future
scenarios. The group does not just spots trend but also
creates them.
While doing all these, the following core values are shared
and transpires among everyone in the organization
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be
humble in our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas,
knowledge and information.
Valuing and Nurturing Relationships: to build long term
relationships.
Simplicity & Positivity: Simplicity and positivity in our
thought, business and action.
Adaptability: to be flexible and adaptable, to meet
challenges.
Flow: to respect and understand the universal laws of
nature.
72 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Research Problem
Study
CHAPTER 7
73 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
1)
Current Ratio:
74 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR CurrentRatio
MEAN ( ) Std.Deviati
on
2009-10 2.16
2.9 1.05
2010-11 2.10
2011-12 3.62
2012-13 3.60
2013-14 3.02
2009-10 2010-11 2011-12 2012-13 2013-140
0.51
1.52
2.53
3.54
Current Ratio
CR
Fig. 16 (a) Current Ratio
Inference : From the above table it is inferred that the
Current ratio status records the maximum for the financial
year 2011-12 and it records the least for the financial year
2010-2011.
The current ratio status revolves around the computed mean
value (2.9) for the financial years 2009-10 and 2010-11.
2) Liquid Ratio
75 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
2009-10 2010-11 2011-12 2012-13 2013-140
0.2
0.4
0.6
0.8
1
1.2
Liquid Ratio
Liquid Ratio
Fig. 16 (b) Liquid Ratio
Inference : From the above table it is inferred that the
Liquid Ratio status records the maximum for the financial year
2011-12 and it records the least for the financial year 2013-
14.
76 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR X MEAN ( ) Std.
Deviati
on2009-10 0.94556
0.69 0.52092010-11 0.31542011-12 0.9752012-13 0.96992013-14 0.2685
The liquid ratio status revolves around the computed mean
value ( 0.69) for the financial years 2009-10 and 2012-13.
3) Gross Profit:
2009-10 2010-11 2011-12 2012-13 2013-140
0.51
1.52
2.53
3.54
Gross Profit
Gross Profit
Fig. 16 (c) Gross Profit
77 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR X MEAN ( ) Std.Deviation
2009-10 3.49
3.158 0.81702010-11 3.712011-12 2.882012-13 2.282013-14 3.43
Inference : From the above table it is inferred that the Gross
Profit status records the maximum for the financial year 10-11
and it
records the least for the financial year 2012-2013.
The Gross Profit status revolves around the computed mean
value (3.158) for the financial years 2009-10 and 2013-14.
4) Net Profit:
78 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR X MEAN ( ) Std.
Deviatio
n2009-10 0.0340
0.01474 0.043242010-11 0.03812011-12 0.02812012-13 0.00432013-14 0.0308
2009-10 2010-11 2011-12 2012-13 2013-140
0.0050.010.0150.020.0250.030.0350.040.045
Net Profit
Net Profit
Fig. 16 (d) Net Profit
Inference : From the above table it is inferred that the Net
Profit status records the maximum for the financial year 10-11
and it records the least for the financial year 2012-2013.
The Net Profit status revolves around the computed mean value
(0.01474) for the financial year 2011-12.
5) Proprietor Fund
79 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR X MEAN ( ) Std.
Deviation2009-10 0.018
0.2966 0.54292010-11 0.0152011-12 0.302012-13 0.942013-14 0.21
2009-10
2010-11
2011-12
2012-13
2013-14
0
0.2
0.4
0.6
0.8
1
Proprietor Fund
Proprietor Fund
Fig. 16 (e) Proprietor Fund
Inference : From the above table it is inferred that the
Proprietor Fund status records the maximum for the financial
year 2012-13 and it records the least for the financial year
2010-2011.
The Proprietor Fund status revolves around the computed mean
value (0.2966) for the financial years 2011-12 and 2013-14.
6) Earnings Per Share:
80 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
2009-10 2010-11 2011-12 2012-13 2013-140
0.10.20.30.40.50.60.70.80.9
Earnings Per Share
Earnings Per Share
Fig. 16 (f) Earnings Per Share
Inference : From the above table it is inferred that the
Earnings Per Share status records the maximum for the
financial year 2011-12 and it records the least for the
financial year 2012-2013.
The Earnings Per Share status revolves around the computed
mean value (0.424) for the financial year 2010-11.
81 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR X MEAN ( ) Std.
Deviation2009-10 0.71
0.424 0.49022010-11 0.472011-12 0.802012-13 0.022013-14 0.12
7) Stock Velocity Ratio:
2009-10
2010-11
2011-12
2012-13
2013-14
02468101214
Stock Velocity Ratio
Stock Velocity Ratio
Fig. 16 (g) Stock Velocity Ratio
Inference : From the above table it is inferred that the Stock
Velocity Ratio status records the maximum for the financial
year 2012-13 and it records the least for the financial year
2010-2011.
82 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR X MEAN ( ) Std.
Deviation2009-10 4.56
5.258 5.82042010-11 2.272011-12 3.262012-13 12.472013-14 3.73
The Stock Velocity Ratio status revolves around the computed
mean value (5.258) for the financial year 2009-10.
8) Inventory Turnover Ratio
YEAR X MEAN ( ) Std.
Deviation2009-10 0.2141
0.2603 0.18932010-11 0.432011-12 0.30622012-13 0.08262013-14 0.2689
2009-10
2010-11
2011-12
2012-13
2013-14
0
0.1
0.2
0.3
0.4
0.5Inventory Turnover Ratio
Inventory Turnover Ratio
Fig. 16 (h) Inventory Turnover Ratio
83 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Inference : From the above table it is inferred that the
Inventory Turnover Ratio status records the maximum for the
financial year 2010-11 and it records the least for the
financial year 2012-2013.
The Inventory Turnover Ratio status revolves around the
computed mean value (0.2603) for the financial year 2013-14.
9) Interest Coverage Ratio
YEAR X MEAN ( ) Std.
Deviation2009-10 0.74
0.432 0.44912010-11 0.612011-12 0.622012-13 0.182013-14 0.01
84 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
2009-10
2010-11
2011-12
2012-13
2013-14
00.10.20.30.40.50.60.70.8
Interest Coverage Ratio
Interest Coverage Ratio
Fig. 16 (i) Interest Coverage Ratio
Inference : From the above table it is inferred that the
Interest Coverage Ratio status records the maximum for the
financial year 2011-12 and it records the least for the
financial year 2010-2011.
The Interest Coverage Ratio status revolves around the
computed mean value (0.432) for the financial years 2010-11
and 2011-12.
10) Degree of Operating Leverage
YEAR X MEAN ( ) Std.
Deviation2009-10 2.32
1.97 1.19512010-11 1.602011-12 3.272012-13 1.54
85 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
2013-14 1.12
2009-10 2010-11 2011-12 2012-13 2013-140
0.51
1.52
2.53
3.5
Degree of Operating Leverage
Degree of Operating Leverage
Fig. 16 (j) Degree of Operating Leverage
Inference : From the above table it is inferred that the
Degree of Operating Leverage status records the maximum for
the financial year 2011-12 and it records the least for the
financial year 2013-2014.
The Degree of Operating Leverage status revolves around the
computed mean value (1.97) for the financial year 2010-11
11) Degree of Financial Leverage
YEAR X MEAN ( ) Std.
Deviation2009-10 0.36
86 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
0.856 0.64182010-11 1.462011-12 1.052012-13 0.962013-14 0.45
2009-10 2010-11 2011-12 2012-13 2013-140
0.20.40.60.81
1.21.41.6
Degree of Financial Leverage
Degree of Financial Leverage
Fig. 16 (k) Degree of Financial Leverage
Inference : From the above table it is inferred that the
Degree of Financial Leverage status records the maximum for
the financial year 2010-11 and it records the least for the
financial year 2009-2010.
The Degree of Financial Leverage status revolves around the
computed mean value (0.856) for the financial year 2012-13.
12) Fixed Assets
87 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
YEAR X MEAN ( ) Std.
Deviation2009-10 4.32
2.804 1.50492010-11 2.212011-12 3.192012-13 1.492013-14 2.81
2009-10 2010-11 2011-12 2012-13 2013-140
0.51
1.52
2.53
3.54
4.55
Fixed Assets
Fixed Assets
Fig. 16 (l) Fixed Assets
Inference : From the above table it is inferred that the Fixed
Assets status records the maximum for the financial year 2009-
10 and it records the least for the financial year 2012-2013.
The Fixed Assets status revolves around the computed mean
value ( 2.804) for the financial year 2013-14
88 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
Findings
From the above table it is inferred that the Current ratio
status records the maximum for the financial year 2011-12 and
it records the least for the financial year 2010-2011. From
the above table it is inferred that the Liquid Ratio status
records the maximum for the financial year 2011-12 and it
records the least for the financial year 2013-14. From the
above table it is inferred that the Gross Profit status
records the maximum for the financial year 10-11 and it
records the least for the financial year 2012-2013. From the
above table it is inferred that the Net Profit status records
the maximum for the financial year 10-11 and it records the
least for the financial year 2012-2013. From the above table
it is inferred that the Proprietor Fund status records the
maximum for the financial year 2012-13 and it records the
least for the financial year 2010-2011. From the above table
it is inferred that the Earnings Per Share status records the
maximum for the financial year 2011-12 and it records the
least for the financial year 2012-2013.
From the above
table it is inferred that the Stock Velocity Ratio status
records the maximum for the financial year 2012-13 and it
records the least for the financial year 2010-2011. From the
above table it is inferred that the Inventory Turnover Ratio
status records the maximum for the financial year 2010-11 and
it records the least for the financial year 2012-2013. From
90 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
the above table it is inferred that the Interest Coverage
Ratio status records the maximum for the financial year 2011-
12 and it records the least for the financial year 2010-2011.
From the above table it is inferred that the Degree of
Operating Leverage status records the maximum for the
financial year 2011-12 and it records the least for the
financial year 2013-2014. From the above table it is inferred
that the Degree of Financial Leverage status records the
maximum for the financial year 2010-11 and it records the
least for the financial year 2009-2010. From the above table
it is inferred that the Fixed Assets status records the
maximum for the financial year 2009-10 and it records the
least for the financial year 2012-2013.
Apart from the financial findings Big Bazaar is undoubtedly
number one retailer in India. It has build very emotional &
cordial relationship with its customers. They are also
intending to build long term relationship with all its
stakeholders which is very essential for successful business
venture. In order to attract customer they should provide good
parking facility Cleanliness and hygienic environment is also
the major concern for big bazaar. Management needs to be focus
on it. Store layout should also be developed in an efficient
manner so that customer can get things easily. According to
research I found that most of the people were affected &
attracted with offers and schemes. So, Big Bazaar should
employ those people who are well trained to provide
information to customer regarding new things to enhance its
customer services. Consumer choose malls to shop because they
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all want variety and brands. According to customers it is
economical as compared to other places. We can also say that
location, variety conveniences and economical products are not
the only thing which attract the customer but good customer
service is one of the crucial factor that attract customers.
Suggestions
Advertising is the basic and most prominent tool toincrease the awareness of product. So, Big Bazaar shoulduse this tool to increase their share in the market.
Retail business is successful only when they have a goodcustomer services. Customer loyalty can only be gain byproviding good or satisfied services to the customers.
Most respondents take on the spot decision of buyingdifferent products because of the various attractiveproducts displays. So pretty combination with goodservices should be done to retain customers.
Quality play a major role because most respondent saidthat they want a quality product and that’s also the oneof the reason for most of the respondents sticking toparticular brand.
Should follow more of high low pricing rather thaneveryday low pricing .
There should be a proper assortment of various productcategories.
Proper training should be provided to the customer sothat they can deal with customer efficiently.
Quality in product should be reach up to mark.
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Conclusion
Big bazaar is a major shopping complex for today’s customers. It is
a place where customers find variety of products at a reasonable
price. Big bazaar has a good reputation of itself in the market. It
has positioned itself in the market as a discounted store. It holds
a huge customer base. The majority of customers belong to middle
class family. The youth generation also likes shopping and moving
around big bazaar. Volume sales always take place in big bazaar.
Impulse buying behaviour of customers comes in to play most of the
times in big bazaar.
Big bazaar is a hypermarket store where varieties of products are
being sold on different product category. It has emerged as a hub of
shopping specially for middle class people. Different types of
products starting from a baby food to pizzas all are available under
one roof. In Delhi it is the middle class people who mostly do
marketing from big bazaar. Even most of the people do their monthly
shopping from big bazaar. People not only visit big bazaar to do
shopping but also visit for outing purpose as it provides a very
nice ambience to its customers.
As people go to malls they just tend to move around big bazaar
whether it is for shopping purpose or for outing purpose. Grocery,
apparels and food items are the products which are demanded most by
the customers of Northern part of India in big bazaar. The major
drawback of big bazaar is that it lacks in providing enough parking
space for its customers. This may discourage the customers to come
to big bazaar and shop as they face difficulty in parking their
vehicles. Even though some customers say that they don’t feel
93 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s
problem in parking their vehicle, it is because of the parking space
available to them by the mall.
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CHAPTER 9
BIBLIOGRAPHY
References:
1. The Nielsen Company, Global Online Survey Q3, 2010, “Global
Private Label Report: The Rise of the Value-Conscious
Shopper,” nielsenwire, March 4, 2011,
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http://blog.nielsen.com/nielsenwire/ consumer/global-private-
label-report-the- rise-of-the-value-conscious-shopper/
2. “Recession, Recovery and Store Brands: What Consumers are
Saying Now,” PLMA Consumer Research Report, Private Label
Manufacturers Association, 2010
3. Scott-Thomas, Caroline, “Private label market set to
double, says Rabobank,” March 28, 2011
http://www.foodnavigator- usa.com/Financial-Industry/Private-
label- market-set-to-double-says-Rabobank
4. “Experts weigh up the marketing benefits of Waitrose and
Boot tie-up,” Joe Thomas, marketingmagazine.co.uk, September
29 2009,http://www.brandrepublic.com/ news/941645/Experts-
weigh-marketing- benefits-Waitrose-Boot-tie-up
5. “Store brands vs. name brands,” Consumer Reports magazine:
October 2010, http:// www.consumerreports.org/cro/magazine-
archive/2010/October/shopping/store-
brands-vs.-name-brands/overview/index.htm
6. “Private label gets a quality reputation, causing consumers
to change their buying habits,” Mintel International Press
Release, January 2011, http://www.mintel.com/
press-centre/press-releases/653/private- label-gets-a-quality-
reputation-causing- consumers-to-change-their-buying-habits
7. “Wal-mart Shifts Private LabelStrategy,” Store Brands
Decisions, September 21, 2010, http://www.
storebrandsdecisions.com/news/2010/09/21/ Wal-Mart-shifts-
private-label-strategy-
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8. http://news.starbucks.com/ article_print.cfm?article_id=23
9. “Concentrated Laundry Detergents Become Latest Trend in
Green Retail Packaging,” Sustainable Is Good, September 6,
2007, http://www.sustainableisgood.com/
blog/2007/09/concentrated-la.html
10. “Kraft to Boost Spending on Core Brands, New Products,”
E.J. Schultz, Advertising Age, February 22, 2011
Books :
1. Kishore Biyani (2007), It Happened In India (1" Edition),
Rupa Publications.
2. Stephen Covey (1994), the Seven Habits of Highly Effective
People (6' Edition), Simon & Schuster UK Ltd.
3. Anthony Robbins (1992), Awaken the Giant within You (1 "
Edition), Simon & Schuster UK Ltd.
4. Robbins, Stephen P. (2004), Organizational Behaviour (10th
Edition),
Web Sites :
www.pantaloonretail.com
www.futuregroup.in
www.futurebazaar.com
www.futurebrand.co.in97 | A c h a r y a I n s t i t u t e o f M a n a g e m e n t & S c i e n c e s