Retail mix

Project on effectiveness of retailing mix in big bazaar

1. Project On
“EFFECTIVENESS OF RETAILING
MIX IN
BIG BAZAAR”
submitted for the partial fulfilment of the
requirement of the degree of
MASTER OF MANAGEMENT
STUDIES OF
UNIVERITY OF MUMBAI
Specialization: Marketing

2. ABSTRACT/ EXECUTIVE SUMMARY
Retail organizations exhibit great variety and new firms keep emerging. There
are store retailers, non-store retailers, and retail organizations. Consumers today
can shop for goods and services in a wide variety of stores. The best-known type
of retailer is the department store. These stores feature art galleries, cooking
classes, and children’s playgrounds. in view, he has to pursue a policy to achieve
his objective. This policy is called the retailing mix. Marketing strategies serve
as the fundamental underpinning of marketing plans designed to fill market
needs and reach marketing objectives.
“It is an activity of enormous economic significance to most developed
nations”. It generates revenue and wealth for a nation, encourages investments
and brings technological advancements. Stated that “it brings employment and
creates the wealth of the economy”. “It is a vibrant part of our changing society
and a major source of employment” Retailing performs activities at a larger
level so it requires massive manpower to handle and manage its operations.

3. CONTENTS
CHAPTER
NO.
INDEX
PAGE
NO.
Abstract / Executive Summary

1. INTRODUCTION
1.1 Background 1
1.2 Significance of the study 2
1.3 Need of study 2
1.4 Scope of study 3
1.5 Aims and Objectives of the study 3

2. LITERATURE REVIEW 4
3. COMPANY PROFILE: BIG BAZAAR 5
4. INTRODUCTION TO RETAIL INDUSTRY 9
5. RESEARCH METHODOLOGY 19
6. ANALYSIS OF THE STUDY 21
7. SUMMARY & CONCLUSION 25
7.1 Findings & Conclusions
7.2 Recommendations

8. BIBLIOGRAPHY & REFERENCES 28

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CHAPTER 1. INTRODUCTION
1.1 Background
“Retailing is a distinct, diverse and dynamic sector”. “It is an activity of
enormous economic significance to most developed nations”. It generates
revenue and wealth for nation, encourages investments and brings technological
advancements. Stated that “it brings employment and creates wealth of the
economy”. “It is a vibrant part of our changing society and a major source of
employment”.
Retailing performs activities at larger level so it requires massive manpower to
handle and manage its operations. Retailing also helps society in general by
providing goods and services in reasonable price and increasing their standards
of living. “Retailing activity can be viewed as a significant contributor to
the economy in general”.
Retailing is the set of activities that markets products or services to final
consumers for their own personal or household use. It does this by organizing
their availability on a relatively large scale and supplying them to consumers on
a relatively small scale.” Retailing makes products and services available in
large quantities. Retailers produce or order the products/services in bulk so they
can take advantage of economy of scale and thus they can formulate competitive
pricing strategies. Products and services are generally sold through the store or
on the internet.
The retailer is an intermediary in the marketing channel because he is both
marketer and customer, who sells to the last man to consume. He is a specialist
who maintains contact with the consumer and the producer; and is an important
connecting link in a complex mechanism of marketing. Though producers may
sell directly to consumers, such method of distributing goods to ultimate users
is inconvenient, expensive and time consuming as compared to the job
performed by a specialist in the line. Therefore, frequently the manufacturers
depend on the retailers to sell their products to the ultimate consumers. The
retailer, who is able to provide appropriate amenities without an excessive
advance in prices of goods is rewarded by larger or more loyal patronage.

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1.2 Significance of the study
The findings of this project will benefit the readers and researchers that how and
why retailing mix is important for competitive advantage in retail sector.
This study will help-
Identify and arrange the elements of its marketing retail mix which will allow
a business to make profitable marketing decisions at every level. These
decisions help a business: Develop its strengths and limit its weaknesses.
Become more competitive and adaptable in its market.
1.3 Need of the study
With significant changes taking place in the Indian Retail sector, it will be
appropriate to consider how these changes will affect Indian consumer. The
total retail market is worth about $200 billion and the modern retail is growing
at about 25%. With a range of retail formats emerging, consumers have several
options depending on their lifestyles. India has around 12 million ‘mom and
pop’ or neighbourhood Kirana stores. India’s socio-economic scene is also
changing.
There is major increase in consuming and climbers’ class, who are the potential
customers of organized retail stores. The most potential target group of
customers belongs to consuming class where population is maximum. There are
many reasons for this favourable change like-
• Increase in income
• Increase in number of earning young people
• Double income nuclear families
• People enjoy shopping, traveling and eating out
• Indulgence in entertainment and lifestyle products etc.
There is change in expenditure pattern. The share on food has been decreased
and it has increased for non-food and durable items.

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1.4 Scope of the Study
The topical scope covers strategies and policies in modern organized retail
stores and does not consider non store retailing or e-tailing. The analytical scope
covers fulfilment of objectives set for the study. The functional scope covers
meaningful suggestions for the organized retail industry.
1.5 Aims and objectives of the study
The focus of this study is on the in-store retail mix elements a retailer provides
to address the interaction needs of its customers in a manner that could enhance
loyalty amongst their customers.
Retail mix elements are not equally important to customers in assisting them to
address the levels of interaction desired in diverse retail environments. In
particular the differences in in-store retail mix elements that customers expect
and that can assist them in their in-store shopping decision-making, in respect
of different products/services, are investigated. The primary objective of this
study is to ascertain which in-store retail mix elements must be in place to
satisfy customer interaction needs in three diverse retailing environments
namely a supermarket, clothing store. The secondary purpose is to identify those
in-store retail mix elements that influence customer loyalty in the
aforementioned three retail environments.
 To study current organized retail industry in India.
 To study change in attitude of people while purchasing and impact due
to strategies like pricing, promotion by modern retailers.
 To know how they implement their Retail Mix Strategy for their
different types of Customer’s satisfaction towards big bazaar.
 To understand the marketing strategy of Big Bazaar.

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CHAPTER 2. REVIEW OF LITERATURE
This present chapter provides an overview of significant literature published on
retail mix or marketing mix. The aim is to gain insight of contextual background
of retail sector and its various marketing mix strategies, investigate issues
related to retail sector in modern market and amount of work done on retail
industry.
In review of literature enough care has been taken to cover the reviews of all
four major marketing variables like Product, Price, Promotion and Place for
both the selected samples.
1) Hoch et al., 1994:
Number of products available at a typical retailer increased significantly
over the last two decades.
2) Amine and Cadenat, 2003:
Retailers now optimize their product lines at a disaggregate level,
making more frequent adjustments to the number and prices of brands
carried.
3) Yin et al, 2012:
The retailer explicitly decides on the price for his used goods by adding
a proper margin to the buyback price
4) The limited service offering and marketing strategy for catering to niche
markets is analysed by Campo & Gijsbrechts (2004), who state that
supermarkets should adjust their product and service offerings according
to the locality in which they are operating. This enables them to
customize their service for the customers employ loyalty and
community support-based marketing strategies. “The study concludes
that sales growth has been the marketing strategy demonstrating highest
affinity to profit performance

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CHAPTER 3. COMPANY PROFILE: BIG BAZAA R
Kishore Biyani is best known for bringing in the great Indian retail revolution.
What’s more, he has consistently gone against conventional wisdom and
charted his own course to make Pantaloon Retail one of the fastest growing
retail chains in not just India but even the world.
Big Bazaar: Pantaloon Retail (India) Limited was incorporated as Manzo Wear
Private Limited in the year 1987. It became a public limited company in 1991
and was renamed Pantaloon Fashions (India) Limited and then Pantaloon Retail
(India) Limited in 1999. Over the years the company has accelerated growth
through its ability to manage change. It integrated backwards into garment
manufacturing and expanded its retail network at the same time. It launched
three successful brands – Pantaloon trouser bar denims and John Miller shirts
between 1987 and 1993. The company introduced the concept of The Pantaloon
Shoppe, an exclusive men’s wear retail store, which expanded across India from
1994- 1998. In the year 1997, Pantaloon moved to large format lifestyle retailing
with the launch of Pantaloons India’s family Store. Pantaloon has grown to a
29-store network and occupies 2,63,000 sq. ft of the retail space. They
contributed Rs 174 crores to the total turnover of the company.4 Big Bazaar
owned by Pantaloon Retail India Limited, the flagship retail chain of the Future
Group, achieved a unique milestone in the history of world retail - by being the
first hypermarket format in the globe to roll-out the fastest 101 stores in a short
span of seven years. This hypermarket chain was introduced in India by
Pantaloon Retail (India) Limited. The year was 2001. The first store opened in
Kolkata and was followed by stores in Hyderabad, Bangalore and Aurangabad
in a short span. It works on the same economy model as Wal-Mart and has had
considerable success in many Indian cities and small towns. The Group is
confident of the Indian retail story. It has not slowed down its expansion plans
despite many other retailers slowing expansion, reducing the number of outlets,
effecting layoffs and even exiting the businesses. In 2006-2007 more Indians
discovered the value of shopping in Big Bazaar. Big Bazaar launched 27 new
stores in 22 cities, covering over 1.40 million square feet. While Big Bazaar
continued to expand in the large cities it also tapped consumptions potential in
smaller cities like Agra, Allahabad, Coimbatore, Surat, Panipat, Palakkad,

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Kanpur, Nashik, Jalgaon and Kolhapur. By May 2008, there were 89 Big
Bazaars spread across various cities and towns across the country. Big Bazaar
plans to have 300 stores and is expecting revenues of 130 billion rupees by the
year 2011.5 At the time of the launch of Big Bazaar there was no real precedent
in the Indian market giants the RPG hypermarkets had opened in Hyderabad
only two months prior to the launch of Big Bazaar. A western model had to be
adapted to suit the needs of the Indian environment various local markets and
local market leaders were studied. This was done to understand the product mix
and the prices offered. Saving is the key to the Indian middle-class consumer.
The store which would be created had to offer value to the consumer. Keeping
this in mind, the concept of Big Bazaar was created. Big Bazaar offers a wide
range of products which range from apparels, food, farm products, furniture,
child care, toys, etc. Products of all the major brands are available at Big Bazaar.
Also, there are many in house brands promoted by Big Bazaar.
Big Bazaar Hyper mart chain in India
Outlet 140 Outlets
Parent Group Future Group
Owner Kishore Biyani
Founded 2001
Head Quarter Jogeshwari, Mumbai
Industry Retail
Tagline Is se sasta aur accha kahin nahi

According to Kishore Biyani’s 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 agriculture products across country.
Vision:
To deliver Everything, Everywhere, Every time for every time for Every Indian
consumer in the most profitable manner.

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Mission:
 We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.
 We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments – for classes and for
masses.
 We shall infuse Indian brands with confidence and renewed ambition.
 We shall be efficient, cost- conscious and committed to quality in whatever
we do.
Quality policy: All products sold at Big Bazaar are guaranteed to be a good
price and of good quality.
Price guarantee: If within two days of purchase, you find a product of same
brand /quality available at a lesser price, please bring back to us within ten days
along with cash memo and we will give you a gift voucher which will be of
DOUBLE the value of the price difference.
Infrastructure Facilities: A typical Big Bazaar store usually consists of 2-3
floors. The Back office is situated at the ground floor. The Big Bazaar stores are
fully air conditioned and are equipped with music facilities, escalators, Parking
facilities.
Big bazaar uses 8 golden rules to deal with Customer Services:
1. Answer the phone.
2. Don’t make promise unless you will keep them.
3. Listen to your customer.
4. Deal with complaints.
5. Be helpful.
6. Train your staff to be always helpful, courteous and knowledgeable.
7. Take the extra step.
8. Throw in something extra.

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The main competitors for Big Bazaar are-
1. Tata Hypermarket,
2. More, and
3. Reliance Fresh.
MANAGEMENT STYLE
The organization structure for Big bazaar is flat in nature. For Big bazaar, the
divisions are apparel, non-apparel and the new business division, which
includes gold, footwear and the shop-in-shops. For Food Bazaar, a separate
team has been created which again works independently.
About 1.800 people work for Big bazaar directly. Support and ancillary services
comprise another 400 people. A new trainee is put through a basic three-day
training program before going on the shop floor Evaluation is done every six
months.
THE STRATEGY
Saving is key to the Indian middle-class consumer. The store, which would be
created, had to offer value to the consumer. Keeping this in mind, the concept
of Big bazaar was created. In India, when a customer needs something for the
home, a typical thought is to seek it from the bazaar. A bazaar is a place where
a complete range of products is always available to the consumer. This is true
across India. As the store would offer a large mix of products at discounted
price, the name Big bazaar was finalized.
The idea was to re-create a complete bazaar, with a large product offering (at
times modified to suit local needs) and to offer a good depth and width in terms
of range. The mind to market for the first store was just six months. Price was
the basic value proposition at Big Bazaar. The Big Bazaar outlets sold variety
of products at prices, which were 5 to 60 percent lower than the market price.
The line "Issue sasta aur accha kahin nahi" emphasised this.

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CHAPTER 4. INTRODUCTION TO RETAIL INDUSTRY
The first decade of modern retail in India has been characterized by a shift from
traditional kirana shops to new formats including department stores, specialty
stores hypermarkets, and supermarkets and across a range of categories. Modern
retail formats have mushroomed in metros and mini-metros. In the last few
years, modern retail has also established its presence in the small cities,
exposing residents to shopping options like never before.
Some of these stores are branded stores(exclusive showrooms either owned or
franchised out by a manufacturer), specialty stores(greater choice to consumer,
comparison between brands is possible), department stores/supermarkets (one
stop shop catering to varied consumer needs), hyper-mart (low prices, vast
choice available including services such as cafeterias.), shopping malls (variety
of shops available to each other ).
Economic Justification for retailing-
All middlemen basically serve as purchasing agents for their customers and as
sales specialists for their suppliers. To carry out those roles, retailers perform
many activities, including anticipating customer's wants, developing
assortments of products, acquiring market information and financing. It is
relatively easy to become a retailer. No large investment in production
equipment is required, merchandise can often be purchased on credit and store
space can be leased with no 'down payment' or a simple website can be set up
at relatively little cost. Considering these factors, perhaps it's not surprising that
there are just over a 6 million retail outlets operating across the Indian cities
from north to south and from east to west. This large number of outlets, many
of which are trying to serve and satisfy the same market segments, results in
fierce competition and better values for shoppers. To enter retailing is easy; to
fail is even easier! To survive in retailing, a firm must do a satisfactory job in
its primary role - catering to consumers. Rama Subramaniam the former head -
retail segment Sponsors described a successful retailer as a "merchant who sells
goods that won't come back to customers who will". Of course, a retail firm also
must fulfil its other role - serving producers and wholesalers. This dual role is
both the justification for retailing and the key to success in retailing.

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Overview of Retail Sector
All over the world, retailing is undergoing a process of evolution and is poised
to undergo dramatic transformation. With special reference to India, the retail
sector employs over 10 percent of the national work force but is characterised
by a high degree of fragmentation with over 5 million outlets, 96 percent of
whom are very small with an area of less than 50 m2. The retail universe
doubled between 1986 and 2006 and the number of outlets per 1000 people at
an All India Level increased from 4.9 in 1988 to 14.8 in 2006. Because of their
small size, the Indian Retailers have very little bargaining power with
manufacturers and perform only a few of the flows in marketing channels unlike
in the case of retailers in developed countries. The corner grocer or the 'Kirana'
Store is a key element in the retail in India due to the housewife’s unwillingness
to go long distances for purchasing daily needs. Although convenience and
merchandise were the two most important reasons for choosing a store, the
choice inertia varied across product categories. Convenience was indicated by
consumers as the most important reason in the choice of groceries and fruit
outlets, chemists and life style items while merchandise was indicated as the
most important in durables, books and apparel. In recent years, there has been a
slow spread of retail chains in some formats like super markets, department
stores, malls and discount stores. Factors facilitating the spread of chains are the
availability of quality products at lower prices, improved shopping standards,
convenient shopping and display and blending of shopping with entertainment
and the entry to industrial houses like Goenkas and Tatas into retailing.

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4.1 The Retail Mix
The retail mix can be defined in many ways but usually it represents the so-
called 6 P’s of retailing namely a retailer’s products, promotion efforts,
personnel, presentation, place and price. In this study the focus is on the in-store
retail mix elements that are under the control of the retailer. Essentially the retail
mix is combined to address customer needs, formulate strategy, coordinate
operations and respond to competition (Koening 2016). Some products fulfil a
role as status symbols or is important to address the physical or psychological
welfare of a customer and as such serve as a motivation to spend more time in
a shop, demand more information and require the advice of sales staff. Store
environments, such as those in clothing stores should be pleasant and beneficial
to browsing as well as providing convenient access to customers with different
mobility needs. The aforementioned demands of customers are of importance
to retail stores that sell high involvement products. On the other hand,
supermarket shoppers demand simple layouts to enhance the speed and
efficiency of grocery shopping. A retail store’s provision of facilities, staff and
merchandise to address the interaction expectations of their customers could, if
appropriately provided, enhance a customer’s shopping experience and
satisfaction which in turn should lead to an increase in customer loyalty. An
earlier study identified the four in-store retail mix elements below to be of
importance for the in-store experience of customers (Terblanche and Boshoff
2006). These four in-store retail mix elements are also suitable to capture the
essential elements of customer-based store interaction as they address the
psychological, physical and situational dimensions of interaction.
 Frontline staff – this element includes all the face-to-face interactions
between customers and frontline retail employees such as staff
providing personal attention, staff’s readiness to help, staff being polite,
staff’s provision of punctual service and where the staff is always ready
to assist customers.
 Merchandise value – this is a combination of the interplay between the
quality of products, prices that offer value for money, products that
functions properly and products that are free from defects.

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 Internal store environment – this element relates to all the elements that
play a part in an acceptable shopping atmosphere such as eye-catching
decor, attractive physical facilities (check- out counters, shelves, well-
spaced product and promotional displays) and appealing materials
associated with the retailer’s service (shopping bags and catalogues).
 Merchandise variety – this element deals with customers’ selection with
regard to various brand names as well as a choice of eminent brands and
the collection of brand names that are offered in many different sizes,
shapes and colours.
These elements measure customer interaction for different types of retailer and
act as independent variables in predicting how Big Bazaar uses its retail mix to
provide services and gain customer loyalty.
4.2 The Retail Mix at Big Bazaar:
The retail mix used by Big Bazaar is the combination of factors used to satisfy
the customer’s needs and influences their purchase decision. It includes the type
of merchandise and services offered, merchandise, pricing, advertising
promotional programs, store design, merchandise display, assistance to
customer provided by salespeople and convenience of the store's location.
 Retail managers at Big Bazaar must determine the optimum mix of
retailing activities and co-ordinate the elements of the mix.
 The aim of such coordination is for each store to have a distinct retail
image in consumers' mind.
The essential elements of retail mix at Big Bazaar are:
 Store locations
 Merchandise assortments
 Store ambience
 Customer service
 Pricing strategies
 Communication with the customers
 Store image
 Store design

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 Store layout
 Sales incentives
 People (staff)
 Physical evidences of the outlets
Retail mix Techniques used by Big Bazaar:
1. Product in the Marketing Mix of BIGBAZAR:
Big Bazaar offers the maximum variety for every category of product. The
product is the same in every store in the city but the brand options are more in
Big Bazaar and the quantity for each product is not limited to large packs only.
The commodities sold by the retail chain includes its "own products" which get
a ready distribution network. The own products of Big Bazaar include My
World fashion magazine which is not available anywhere else. So, costs are very
low for such products.
Product mix of Big Bazaar:

2. Price in the Retailing Mix of BIGBAZAR:
Price is the critical point in a competitive industry. Big Bazaar works on a low-
cost model. It considers its discounted price as its USP. There is an average
discount of 6-8% on all items in respect to their MRP. Prices of products are
low because it is able to secure stock directly from the manufacturer. There are
huge synergies in terms of bulk purchasing, transportation and central
warehousing. These all factors are very helpful for the retailers to keep low
prices
 Value Pricing (Every Day Low Pricing): Big Bazaar promises consumers
the lowest available price without coupon clipping, waiting for discount
promotions, or comparison shopping.

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 Promotional Pricing: Big Bazaar offers financing at low interest rate. The
concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as
promotional tool. Big Bazaar also caters on Special Event Pricing (Close to
Diwali, Gudi Padva, Durga Pooja, Independence Day, Republic day etc.)
 Differentiated Pricing: Time pricing, i.e., difference in rate based on peak
and non-peak hours or days of shopping is also a pricing technique used in
Indian retail, which is aggressively used by Big Bazaar.
 Bundling: Selling combo-packs and offering discount to customers. The
combo-packs add value to customer. Big Bazaar is aggressive on their
expansion plans.
Big Bazaar started many new and innovative cross-sell and up-sell strategies in
Indian retail market.
The various promotion techniques used at Big Bazaar include "Saal Ke Sabse
Saste Teen Din", Future Card (the card offers 3% discount)
3. Place in the Marketing Mix of BIGBAZAR:
Place means the location of the business. Big Bazaar has always worked on
cheap locations. It targets semi-urban population with its placement. Its strategy
is to find a low-cost location and it never goes for hot spots in the city. It relied
on promotional activities to make up for unattractive locations. Another strategy
used by Big Bazaar to overcome location disadvantage is use of internet. It has
launched a merchandise retailing website www.futurebazaar.com which targets
high-end customers ready to use credit cards. The promotion of this website is
done through advertisement on Google. The website is put as sponsored link.
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.

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Promotion in the Marketing Mix of BIGBAZAR:
Big Bazaar has huge promotion budgets. The biggest idea behind all
advertisements is to make people do bulk shopping. There are 2 types of
promotional strategies of big bazaar. One is the advertisement which promotes
the brand and creates awareness towards people. It is not targeted at promoting
each store but only creates an image of Big Bazaar as low-cost shopping option.
The store has advertised through TV, road shows and also started reality show-
typed promotional campaign "The Big Bazaar Challenge."
Promotions like "Sabse Sasta Din"(Cheapest Day) are a very successful strategy
to get good results. In these products across categories such as furniture,
electronics, utensils, apparels and food products at the lowest possible prices,
coupled with attractive promotional schemes. Some of the most attractive offers
being a 20-litre branded microwave oven with grill for Rs 2,399, jeans and
trousers for Rs 199 and HCL laptops for Rs 22,800.
Buy 2 Get 1 Free types of promotions are very common. Original prices are cut
down and new prices are shown, of which customer takes quick notice. There
are loyalty schemes which reward regular clients.
Promotion Mix:
 “Saal Ke Sabse Saste 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.

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4.3 Innovative Retail Strategies of Big-Bazaar:
Exterior Presentation: The quality of a store front is a major determinant for
a customer and the store appearance should never be compromised. The exterior
appearance silently announces what customers can expect inside. Good exterior
visual merchandising attracts attention, creates interest and invites the customer
into business.
Generally, Big Bazaar plays attention to the exterior presentation which are
progressive, lavish or discount image to the customer. The important point to
be noted is that how a big bazaar visually welcomes a customer whether they
enter or not.

Exterior Signs: An effective sign is a silent sales person. A sign must attract
attention of customers in less than ten seconds and should convey what the
business is and what it has to sell. The size of the letter used in signs should be
large enough to be read from a distant place. Elegant design and expensive sign
material will convey a business of luxury goods and services. A design of the
sign conveys a great deal about the business. Signs can also be used to target a
specific market segment such as youth, women, singles etc. Logo is also very
important and plays a major role in attracting customers. They should be unique
and noticeable. Big Bazaar uses creative exterior signs to attract the customers
and encourage them to shop.

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Marquees: Marquees are special type of signs used to display stores name. In
Big Bazaar effective marquees are designed so as it is different from others and
attracts the attention of customers.
Banners: Banners are economical but colourful and eye-catching means of
promotion. They can be changed frequently to create different appearances
which will in turn attract customers to the store. Big Bazaar uses the effective
colour scheme and design concept which is used in the banners and are the same
as what is used in the store, on promotional materials and newspaper ads.

Entrance and Aisles: Most of the first-time customers remember the store
entrance. This goes on with the quote ‘first impression is the best impression’.
Giving the best impression to the customer’s right at the entrance is mandatory
for any store. Therefore, Big Bazaar has its unique and lavish entrance to attract
the customers.

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Window Displays: The display at shop windows is becoming increasingly
popular as far as visual merchandising stands. Changing window displays to
suit themes and moods and seasons is gaining popularity. Big Bazaar specially
emphasis the store’s window displays because they are the information link to
the potential customer. It is reckoned that as many as one in every four sales
could be the result of a good window display. Window display at Big Bazaar
attracts attention, create interest and invite people into the store to purchase
goods. They do not crowd too much of merchandise at a window, as customers
find it difficult to determine the message and what items are being promoted.
Interior Presentation: Selling space is the most important part of a store and
therefore, efforts to utilize each square foot will help to maximize sales. When
planning interior displays, it should be kept in mind that the theme and image
presented on the exterior must be carried throughout the interior of the store to
provide consistency for the customer. The purpose of interior display is to
develop desire for the merchandise, show what is available, and encourage both
impulse and planned buying. Three major goals of a store should be to motivate
the customer to spend money, project the image of the store and keep expenses
to a minimum. Well-designed displays and in-store promotions are essentials
for a consistent theme and to help the customer find advertised items.

Display Design: An effective way of attracting customers to a store is by having
good displays, both exterior and interior. A customer will be attracted to a
display within three to eight seconds, which is the time a customer spends to
determine interest in a product. Every display at Big Bazaar are planned and
have a theme. Good design at every outlet of Big Bazaar has made a visual
presentation that come together. This means the design attracts attention in a
way that strengthens the store image, as well as introducing merchandise to the

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customer. Sale or promotional good in front of the store should be placed for
short period of time only. If the sale or promotion lasts for several weeks,
merchandise should be moved to the rear of the store. The customer always get
to see new exciting and creative merchandise with display at the front of the
store.
Use of music: The store image and the mood of the customers changes
dramatically by the use of music. Music establishes moods, helps to motivate
the subconscious mind and create long lasting impression on the customers. Big
Bazaar plays specific music for particular merchandise which creates a good
shopping experience.
Perfumes and Scent: The other use of stimulation done by Big Bazaar is use
of stimulating the olfactory lobe of the brain. i.e. use of perfumes and scents.
Big Bazaar layouts having fresh breads and buns, can entice the customers by
the aroma. Segments of the store having soaps and toiletries enchant the
customers by the use of perfumes and scents. A pleasing scent creates a
wonderful ambience and add to the customers shopping experience. Scent can
also be a major factor in determining which product to buy. Everything from
perfumes, scented candles, toiletries, cleaning products are all bought while
keeping scent in the mind. The scent generally determines which product the
customer purchases.

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CHAPTER 5. RESEARCH METHODOLOGY

 Type of research
Qualitative research

 Type of data
Secondary data

 Data collection method
To achieve foresaid objectives the following methodology has been
adopted. The information for this report has been collected through the
secondary source.
Secondary Source data, collected by sources such as internet, text books
and various published national and international marketing journals,
research papers.

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CHAPTER 6. ANALYSIS OF THE STUDY
The study analyses that big hypermarkets and retail chains like Big Bazaar
should focus on the factors such as product- service profiling, ambience
management, crowd management, staff handling, Customer service, etc.
Impact of Big Bazaar on the Consumers Retailers:
1. Keeping the stock of the different verities of goods.
2. Applying various methods of demand creation.
3. Helping in the effective distribution of consumer goods.
4. Extending credit facilities to the consumers.
5. Providing many personal services to the consumers.
6. Providing essential data and information to the manufacturers
about the trend in marketing changes in fashion, tests, etc.
7. Making available the good according to the season.
8. Gives proper advice to the customer.
Big Bazaar’s New Strategy:
Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge
array of goods of good quality for all at affordable prices. Big Bazaar with
number of outlets in different parts of India is present in both the metro cities as
well as in the small towns. Big Bazaar has no doubt made a big name in the
retail industry of India, moreover shopping here is further made a memorable
experience with the varied rates of discounts on products as well as discount
vouchers available in a variety of amounts. Big Bazaar is a chain of shopping
malls in India owned by the Pantaloon Group.8 The idea from the very
beginning was to make Big Bazaar very comfortable for the Indian customer.
Big bazaar is not just another hypermarket. It caters to every need of the family.
Where Big Bazaar scores over other stores is its value for money proposition
for the Indian customers.

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Big Bazaar has launched new marketing strategy which is based on Guerrilla
Marketing. Guerrilla marketing warfare strategies are a type of marketing
warfare strategy designed to wear-down the enemy by a long series of minor
attacks, using principles of surprise and hit-and-run tactics. Attack, retreat, hide,
then do it again and again, until the competitor moves on to other markets.
Guerrilla force is divided into small groups that selectively attack the target at
its weak points. In the world of cut throat competition, corporate use extension
of the same strategy in marketing. Corporate like Pepsi, Coke etc have been
using the same for quite some time now and the latest entrant is our very own
‘Future Group’- Big Bazaar, Future Bazaar, Pantaloons, e Zone are all part of
this group and they are taking on the biggies like Shoppers Stop, Lifestyle, and
Tata’s Westside. In order to do the same, Future Group have come up with 3
catchy and cheeky ad campaigns which surely do catch our eyes and surely one
can’t resist appreciating the same.
SWOT Analysis of Big Bazar:
Strengths:
 Maximum number of varieties: People prefer those places where they
can get the maximum products they need and Big Bazaar provides vast
range of products under one roof helping in attracting customer and their
family to shop together and enjoy the experience.
 High brand equity: Big Bazaar has created high brand equity through
its promotions and marketing it has created a different image for its
products as the cheap and best.
 Largest chain of retail marketing in India: Big Bazaar is the first
retail chain to be started in India and is the largest and successful until
now.
 High capacity investment: Big Bazaar offers 1,70,000 products and
owns more than 100 retail stores all over India and has the strong
financial background as being the subsidiary of future groups which
owns the pantaloons which is one of the biggest the industries in men’s
wear in India and have its work is spread all over India. Future group is
one of the leading groups in India.

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 Everyday new promotions and schemes of low prices and discounts:
Big Bazaar always offers new schemes of low prices and gives discounts
in products like Big Bazaar offers the sabse saste 3 din (the cheapest 3
days) in which it offers the lowest of prices than other days. Facilities
like online booking and delivery of goods: It is not just a chain of retail
shopping but also provides online shopping facility to the consumers.
Weaknesses:
 Overcrowded: During offers, promotions and even on weekends the
place is overcrowded with people and sometime even there is the
situation of closing the store due to it.
 Checkout can be extremely slow: There can be seen a long queue on
the billing counters making the consumer wait for hours due to the slow
service and the crowd.
 Perception of low price=low quality: Generally, people think that if
any product has low price then the quality of the product will be low as
they think quality comes with price.
 Targets at the middle class and upper middle class only: It targets at
the middle and upper middle class due to which it ignores the upper and
elite class people as they are the cream of the society who are ready to
pay any price for the quality and product they need.
Opportunities:
Big Bazaar can enter into production of various products due to its in depth
understanding of customers’ tastes and preferences. Nowadays people prefer
going to one big store and buy everything instead of visiting different places for
different items and waste time. So Big Bazaar can expand the business in
smaller cities as there is a lot of opportunity. Lot of potential in the rural market.
Threats:
 High business risk involved: Big Bazaar investment is very large so it
is obvious that there is high business risk involved.

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 Lot of competitors: There are a lot of countries which are planning to
enter the Indian market like Wal-Mart, Carrefour and Tesco which is a
big threat to Big Bazaar.
 Less Parking Space: Customers are not satisfied with the parking space
availability provided by Big Bazaar. Hence, it’s a threat of Big Bazaar
as it may lose its customers because of less parking space availability.
In holidays it will be very difficult for customers to park their vehicle in
Big Bazaar.
 Unorganized retailing: Unorganized retail stores are a threat to the
business of big bazaar as now also people prefer to go to the local stores
which are convenient enough for them.

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CHAPTER 7. SUMMARY & CONCLUSION
7.1 Findings & conclusion
Big Bazaar is holding a strong position in the market and is growing very fast.
It captures the maximum Indian market and with a strong financial background
and it has to go a long way through. The low-price strategy it
is successfully running its business all over India and is still growing
bigger and bigger.

The above image indicates that after applying effective retailing mix at the store,
the revenue generated is in the above given percentages, considering the
different sections of the store.
The key learning which came out of this exercise was that for a large store like
Big Bazaar, a large catchments area was needed. The management decided to
stick to the existing market places within the city as the western model of
hypermarkets, where the store was located in large area on the mid of the city
would also really work in India. The cost of time spent on travels and the cost
of petrol in India would really become a plus point for the customers. Some of
the key marketing strategies and promotional activities that are successfully
employed by Big Bazaar are: Discount Selling Big Bazaar sells all its products
at a much cheaper price as compared to the local markets. The range of
discounts ranges from 5 to 60%. Although the store sells the products at a
cheaper rate it does not compromises with the qualities of the products. Huge

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No. of Brands Big Bazaar maintains a huge number of brands under its dispose
which give the customers the liberty of buying the product of their favourite
brand. This helps the customers as they don’t go looking out for a product of a
particular brand. Large Product Line Big Bazaar also stocks a large product line
of a single brand or multiple brands which give the customers the choice to
select the most appropriate product out of many available at the most
economical prices.
Retailing Strategy in big bazaar to increase the footfall of the store during the
weekday. Customers are more attracted towards discount schemes & sales.
Various product lines also attract customers to choose their retails stores.
Entertainment units & kids’ zone should be provided in retail stores in order to
cater more customers. The after sales service of retail stores should be helpful
& effective. This after sales service creates loyal customers.
7.2 Recommendations
Positive buying emotion and store design are the most significant components
of retailing. Big Bazaar should constantly work on creating favourable shopping
environment. Store design is a significant aspect in attracting and keeping the
consumer excited about the shopping experience attractive decoration, creative
merchandising, efficient layout, appropriate lighting, music and aromas
enhance mood and emotion, which may lead to impulsive buying behaviour.
Significative visual displays may also arouse impulsive buying emotion.
Efficiently arranged layout provides convenience and comfort to customers.
These elements can be used to create favourable store environment and motivate
shoppers to make an impulse purchase. This study shows that there is a strong
relationship between visual merchandising and impulse buying of the shoppers.
So visual merchandising is a significant tool for every retailer. Therefore, Big
Bazaar should always concentrate on efficient visual merchandising. Retailers
should display things in the store in such a way that customer get attracted and
excited. #his may lead them to unplanned purchase, which will increase the
sales as well as profit of the store. /layout of the store is a significant aspect of
instore environment which makes shopping easy for customers. There is a
relationship between convenient store layout and product browsing.

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Product browsing makes customers aware of offerings of store and various
promotional schemes. Big Bazaar should arrange layout of the store in a way to
provide maximum convenience to customers, this may create positive impact
on the sales of the store. Employees’ service is also a crucial factor for retail
sector. If employees are well trained, they can provide better service to
customers and if customers would be happy with their response and behaviour,
they will maintain a relationship with the store. Behaviour of the employee can
influence the purchase decision of the customer. Big Bazaar should develop
effective training and development programs for employees so that they can
continue to work on maintaining good customer relationships.

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CHAPTER 8. BIBLIOGRAPHY & REFERENCES
References and links
https://shodhganga.inflibnet.ac.in/bitstream/10603/74742/12/12_chapter5.pdf
https://acadpubl.eu/jsi/2018-118-14-15/articles/15/24.pdf
https://www.slideshare.net/hemanthcrpatna/a-projects-report-on-effectiveness-of-
retailing-mix-in-big-bazaar
 Kishore Biyani (2007) - It Happened in India: The Story of Pantaloons,
Big Bazaar, Central and the Great Indian Consumer - Rupa Publication,
Mumbai
 Puneeet Shweta (2008) - Technology The Heart of Organized Retail -
Marketing Mastermind, May, p.p. 45-48.
 Chetan Bajaj et al (2008) - Retail Management - Oxford Publishers, New
Delhi.
 Fam, K.S. and Merrilees, B. (1996a), ¯Determinants of shoe retailers‘
perceptions of promotion tools‖, Journal of Retailing and Consumer
Services, Vol. 3 No. 3, pp. 155-62.