1

Summer internship project

Company:
Pantaloon retail India LTD.
(big bazaar)

Summer Training report submitted in partial

fulfilment
Of the requirements for the PGD programme.
At
IILM INSTITUTE OF HIGHER
EDUCATION
ACHEDEMIC GUIDE: SUBMITTED BY:
PROF. KAWITA SHUKLA PANKAJ CHANDEL
COMPANY GUIDE: ROLL NO. PG 2007 1319
MR. ANOOP NAIDU PGP 2007-09

Summer Project Certificate

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This is to certify that PANKAJ CHANDEL Roll No. PG 20071319 a

student of PGP has worked on Summer project titled SUPPLY CHAIN
MANAGEMENT OF BIG BAZAAR at PANTALOON RETAIL
INDIA LTD.(BIG BAZAAR)after trimester-III in partial fulfilment of
the requirement for the programme. This is his/her original work to the best of
my knowledge.

Date: - _______ Signature __________

Seal: Name of Faculty________

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Declaration
I hereby declare that the project report titled ‘’Supply chain
management of Big Bazaar’’ in Indore (Treasure Island )is my own work and
has been carried under the guidance of Mr. ANOOP NAIDU INDUSTRY GUIDE
and Mrs. kavita shukla faculty IILM. Report is submitted in partial fulfilment
for the award of post graduate program. All care has been taken to keep this
report error free and I sincerely regret for any unintended discrepancies that
might have crept into this report. I shall be highly obliged if errors (if any) be
brought to my attention.

Thanking you.

Pankaj chandel

E-mail-
panakshi_69@yahoo.co.in

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Acknowledgement

Undertaking any project in life proves to be a milestone in more ways than

one. Its successful completion reifies on a myriad of people & their priceless
help.

Project work in never the work of an individual, it is more of a

combination of views, suggestions &contribution of many individuals. Thus
one of the most pleasant parts of doing this project is the opportunity to
thank all these who have contributed towards successful completion of this
project.

I take this opportunity to thank the Pantaloon Retail India Ltd.

( BIG BAZAAR) to give me this chance to know about the back bone of the
retail industry. It has been a pleasurable experience filled with knowledge &
awareness to take part in this project. This project would not have been
successful without the guidance of my industrial project guide Mr. ANOOP
NAIDU. Who has provided me time, out of his busy schedule. Further I would
also like to thank whole team of Big Bazaar for their co operation &
guidance at field. Without the support of these wonderful people I would
never had completed my internship successfully & learning would never
have turned interesting.

Last but not the least I would like to thank the whole team of
Pantaloon Group Retail India Ltd for so much supportive nature.

Pankaj chandel

PGP-2007-09

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PG 200071319

IILM INSTITUTE OF HIGHER EDUCATION

GURGAON(N.C.R. DELHI)

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Executive summary
I have undertaken my summer internship with supply chain department
of Pantaloon Retail India Ltd. (Big Bazaar) Indore a unit of future group.

As supply chain is a very big area to cover in just sixty

days, so I formulate a complete supply chain of Big Bazaar and divide my
work in store ware house, floor, and central ware house. Firstly I spend some
time on floor and see the customer buying behaviour, customer preference,
customer need etc.,the visualisation part done by the V.M. and floor team
arrangement of the material on the floor to attract the customers.

In current business scenario S.C.M. is very big and major problem for
retail industry. Second part of my job was to work in store ware house where
I have seen the complete receiving of the material and documentation
process by following all the rules of S.O.P. In the store ware house I have
seen the in warding of the material on SAP with different commands, how to
make G.R.N. of the material and post all the documents to the commercial
office. Here I have seen how to make S.T.O.

Third part of my job was to work with Central Ware House team. In ware
house I try to understand whole process of supply chain and logistics, their
way of working. Here I have seen in warding, racking, out warding,
segregation and maintenance of the stock physically as well as in SAP.

Then finally I have done market research on buying behaviour of customers

towards three main players of the retail industry.Questionaire is customer
oriented in spite of vendor oriented because according to me customer is
the king of supply chain. Supply chain circulates with the flow of information
in terms of need of the customers. I made questionnaire and did a survey by
filling the questionnaires and get findings from the result of these
questionnaires. By the help of these findings I came to know that before
entering in to a retail outlet customer weighs that retail outlet on some
parameters. By the help of findings from questionnaires I came to know the
sequence and weighing of these parameters preferred by the customers. Big

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Bazaar is on the right track by using these parameters for being customer
oriented.

After the above studies and insight of the workings a few hindrances
where spotted but on an overall we can say that the store is quite well
maintained.

Content
Topic
Page no. 1.Executive summary
5

2. What is retailing
7

3. Company introduction (Pantaloon Retail India Ltd.)

10

4. Supply Chain Management

15

4.1 Supply Chain process

16

4.2 Supply chain of Big Bazaar

18

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5. No. of register maintain in store wear house

25

6. Documents
26

7.......................
29

8. Three flows in supply chain

31

9. Transportation of material in Big Bazaar

32

10. Concept of ware housing in Big Bazaar

33

11. Material handling cost

37

12. Three type of distribution centre in Big Bazaar supply

chain 38

13. Central ware house Indore

38

14. Some terms in supply chain of Big Bazaar

43

15. Research Objective

51

16. Analysis
54

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17. Findings
62

18. Objective with questionnaire

63

What is Retailing
Retailing is the distribution channel function where on organisation buys
products from supplying firms and manufacture the product themselves and
then sell these directly to consumers. Retailer is also reseller-obtain the
product from one party in order to sell to other. The term "Retailing" refers
to any activity that involves a sale to an individual customer. In India, the
unorganized retailing sector comprises of 96.5% while that of organized
sector just 3.5% that is mainly in major metropolitan and urban areas. Indian
retailing traditionally dominated by a small family run "Kirana" store.
Retailing in India is the second largest untapped market after China.
Professional management and strong customer focus characterize organized
retailing.

Concept- To woo the customer to the store retailers are

providing a wide range of product, Quality, and value for money, apart from
creating a memorable shopping experience. Organized retailing has made a
considerable headway in product like food & groceries, clothing books, and
music.

Five things for the retailer-

1. Customer satisfaction
2. Ability to acquire right product
3. Product presentation
4. Traffic building
5. Keeping pace with technology

The leading Indian retail player are-

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1. Westside (Tata)
2. Pantaloon
3. Big Bazaar
4. food bazaar(PRIL)
5. Food world(RPG)
6. Shopper's stop(Raheja Group)
7. Reliance fresh
8. Visual mega mart
9. Life style
10.Ebony
11.Hyper city
12.Honey well
13.Subhiksha

Different format of retail-

1. Mom-and-pop stores: These are generally family-owned businesses
catering to small sections of society. They are small, individually run
and handled retail outlets.

2. Category killers: Small specialty stores have expanded to offer a

range of categories. They have widened their vision in terms of the
number of categories. They are called category killers as they
specialize in their fields, such as electronics (Best Buy) and sporting
goods (Sport Authority).

3. Department stores: These are the general merchandise retailers

offering various kinds of quality products and services. These do not
offer full service category products and some carry a selective product
line. K Raheja's Shoppers Stop is a good example of department
stores. Other examples are Lifestyle and Westside. These stores have
further categories, such as home and décor, clothing, groceries, toys,
etc.

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4. Malls: These are the largest form of retail formats. They provide an
ideal shopping experience by providing a mix of all kinds of products
and services, food and entertainment under one roof. Examples are
Sahara Mall, TDI Mall in Delhi.

5. Specialty Stores: The retail chains, which deal in specific categories

and provide deep assortment in them are specialty stores. Examples
are RPG's Music World, Mumbai's bookstore Crossword, etc.

6. Discount stores: These are the stores or factory outlets that provide
discount on the MRP items. They focus on mass selling and reaching
economies of scale or selling the stock left after the season is over.

7. Hypermarkets/ Supermarkets: These are generally large self-

service outlets, offering a variety of categories with deep assortments.
These stores contribute 30% of all food and grocery organized retail
sales. Example: Big Bazaar.

8. Convenience stores: They are comparatively smaller stores located

near residential areas. They are open for an extended period of the
day and have a limited variety of stock and convenience products.
Prices are slightly higher due to the convenience given to the
customers.

9. E-tailers: These are retailers that provide online facility of buying and
selling products and services via Internet. They provide a picture and
description of the product. A lot of such retailers are booming in the
industry, as this method provides convenience and a wide variety for
customer. But it does not provide a feel of the product and is
sometimes not authentic. Examples are Amazon.com, eBay.com, etc.

10. Vending: Smaller products such as beverages, snacks are some the
items that can be bought through vending machines. At present, it is
not very common in India.

View of a retail store-

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To have a clear picture and

understanding of any matter it is very important to approach it from the
grass root level therefore to understand retail in depth it becomes important
to deal first hand with the customers to whom you shall be catering to.
Moreover the retail store is the final destination of all retail operations, so it
again becomes important to know the handling, operations and various
dealings at the basic store level. The employees, from the sales staff to the
store manager, need to be highly customer driven and have the efficiency to
meet the ever rising customer expectations. How can employees meet these
rising customer expectations and alongside maintain efficiency of resources.
The employees need to be well informed about stock availability, reorder
points, latest trends, customer expectations, competitor strategies etc.

To meet such stiff competition retailers need to follow a hybrid approach

which involves both standardization and customization of processes and
services respectively as and when the need arises.

The retail staff needs to be highly customer driven and their efforts should
not be aimed at making a sale but at earning a loyal customer for it is rightly
said that 80% of the sale comes from 20% of the customers.

Retail is all about size. If you look at retail companies, margins are thin. So it
is important to grow to such a size that even if margins improve by ten basis
points, the impact on the bottom-line is large.

Therefore the processes need to be consumer friendly and apt according to

the cost reduction and revenue generation policies of the company. Though
the consumer behaviour is something that is highly unpredictable it needs to

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be motivated continuously for the benefit of the organization and definitely

the customer too.

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Why retail is booming in India-

1. Cultural habits changing –people are acquiring Western look
2. New retail format development to incorporate, Changing attitudes like
“Having a good time” attitude driving growth of pubs, clubs, coffee bars, fast food joints
etc.
3. Increasing awareness and spending on grooming and lifestyle.
4. High disposable incomes
5. Reduction in import tariffs, excise duty
6. More competition leading to fall in prices
7. Before liberalization many consumer durables were not available – Government
disallowed imports of most products – Luxury items banned/had high import tariffs
8. Post liberalization
Enhanced availability of superior quality goods at affordable prices
9. Two incidental factors
Spread of cable and satellite television influencing consumer behavior.

Changing retail scenario-

Demand = Ability + willingness to spend;
Market = Demand + supply

Company introduction

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Pantaloon Retail India Ltd.

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple
retail formats in both the value and lifestyle segment of the Indian consumer market.
Headquartered in Mumbai (Bombay), the company operates over 10 million square feet of
retail space, has over 1,000 stores across 61 cities in India and employs over 30,000 people.
The company’s leading formats include Pantaloons, a chain of fashion outlets, Big
Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the
look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience
and quality and Central, a chain of seamless destination malls. Some of its other formats
include Depot, Shoe Factory, Brand Factory, Blue Sky, and Star and Sitara. The company
also operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a
large-format home solutions store, Collection i, selling home furniture products and E-Zone
focused on catering to the consumer electronics segment.
Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-
based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007
at the World Retail Congress held in Barcelona.
Pantaloon Retail is the flagship company of Future Group, a business group catering to the
entire Indian consumption space.
Future group-
Future Group is one of the country’s leading business groups present in
retail, asset management, consumer finance, insurance, retail media,
retail spaces and logistics. The group’s flagship company, Pantaloon
Retail (India) Limited operates over 10 million square feet of retail space,
has over 1,000 stores and employs over 30,000 people. Future Group is
present in 61 cities and 65 rural locations in India

Some of the awards given to Pantaloon Retail (India)

Limited:

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Images Retail Awards 2005

PRIL - Most admired retailer of the year
Central - Retail launch of the year
Mr. Kishore Biyani - Retail Face of the year
Big Bazaar - Best Value Retail Store
Readers Digest and Awaaz Consumer Award
Big Bazaar - Best Retail Destination
Readers Digest Platinum Trusted Brand Award
Big Bazaar - Earning a trusted Place in the everyday lives of consumers
Food Bazaar - Retailer of the year (food and grocery
Big Bazaar - Most preferred, large, Food and Grocery store

Partner companies
Pantaloon Industries Ltd.
Home Solutions Retail (India) Ltd.
Future Capital Holdings
Converge M Retail (India) Ltd.
Indus League Clothing Ltd.
Galaxy Entertainment Corporate Ltd.

Joint Ventures Companies

Planet Retail Holdings Ltd.
Foot mart Retail
GJ Future Fashions
CapitaLand Retail India
ETAM Future Fashions India Pvt. Ltd.

Lines of Business
The company is present across several lines of business which have various formats (stores)
operational under it. These include:
• Food – Food Bazaar, Chamosa, Spoon
• Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10
• General Merchandise - Big Bazaar, Shoe Factory, Navras,
Electronics Bazaar, Furniture Bazaar
• Home & Electronics - Home Town, eZone, Collection 1
• E-tailing (Online Shopping) - www.futurebazaar.com

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• Books & Music - Depot

• Leisure & Entertainment - Bowling Co., F123 Wellness - Star &
Sitara, Tulsi

BIG BAZAAR

Big Bazaar is a hypermarket consists of extremely large self-service

retail outlet with a warehouse appearance, currently with 75 outlets in
India. It is owned by the Pantaloon Retail India Ltd, Future Group. It works
on the same economy model as Wal-Mart and has considerable success in
many Indian cities and small towns. The idea was pioneered by
entrepreneur Kishore Biyani the CEO of Future Group. Currently Big
Bazaar stores are located only in India. It is the biggest and the fastest
growing chain of hypermarket stores and aims at being 350 stores by the
end of year 2010.

Tag line-Is se sasta aur achha kahin nahi

Different categories-
1. Apparel, fashion and accessories
2. Books and magazines
3. Bike and automotive
4. Camera and photo
5. Desk top, lap top and accessories
6. Furniture and decor
7. Gift and credit card vouchers
8. Health beauty and personal care
9. Jewellory and watches
10. Kitchen and home appliances
11. Mobile and service provider
12. Music and mp3 player
13. Software cds and vcds
14. Toys sports and video games
15. Other miscellaneous items

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Big Bazaar’s Commitment

Our commitment is to deliver sustained growth, through empowered people, acting with
responsibility and building trust with customers. Here’s I am explaining what this means:

Sustained Growth is fundamental to motivating and measuring our success. Big Bazaar’s
quest for sustained growth stimulates innovation, places a value on results, and helps us
understand whether today’s actions will contribute to our future. It is about growth of people
and company performance. It prioritizes making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that you feel will
get the job done, while being consistent with the processes that ensure proper governance
and being mindful of the rest of the company’s needs.

Responsibility and Trust form the foundation for healthy growth. It’s about earning the
confidence that other people place in us as individuals and as a company. Our responsibility
means we take personal and corporate ownership for all we do, to be good stewards of the
resources entrusted to us. We build trust between ourselves and customers by talking not by
mouth but by our superior customer service and being committed to succeeding together.

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Supply chain process -

SUPPLIER
RETAILER CUSTOMER

MANUFACTURER
TRANSPO
RTER

As we know supply chain is the back bone of any industry. A supply chain
consists of all parties involved directly or indirectly in fulfilling a customer

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request. The supply chain includes not only the manufacturer or supplier part
but also transporter, ware house and customer part. In retail especially supply
chain begins with the customer and his or her need for the product. In retail
supply chain involved in receiving and filling a customer request.

As we know customer is an integral part of the supply chain.In fact the

primary part of any supply chain is to satisfy customer needs and in precess
generate profit for itselfThe term supply chain conjures u[ images of product or
supply moving from to manufacturer to distributer to retailer to customer along
a chain.This is certainly part of supply chain,but it is also important to visualize
information,funds and products flows along both directions of this chain.

In reality a manufacturer may receive material from several supplier and

then supply several distributers.A supply chain ,may includes a variety of stages;

1. Customer
2. Retailer
3. Wholesaler/distributer
4. Manufacturer
5. Component/raw material supplier

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Supply chain process- Supplier

Procurement cycle

Manufacturer

Manufacturing cycle

Distributor

Replenishment cycle

Retailer

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Customer order cycle

C
ustomer

Supply Chain Management

Supply Chain Management covers the planning and management of all
activities involved in sourcing, procurement, conversion, logistics and
Distribution. It also includes coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third-party service
providers, and customers.

Objective of every supply chain should be to maximize the overall value

generated. The value a supply chain generates is the difference between
what the final product is worth to the customer and the costs the supply
chain incurs in filling the customer’s request.

Three macro processes in the supply chain of Big

Bazaar-

In the Big Bazaar supply chain activities belong to one of

three macro processes;

1. C.R.M.-All processes that focus on interface between the firm and

its customers
a. Market
b. Price
c. sell
1. I.S.C.M.-All processes those are internal to the firm.
a. Strategic planning
b. Demand planning
c. Supply planning
d. Fulfilment
e. Field service
1. S.R.M.-All processes that focus on the interface between the firm
and its suppliers.
a. Source

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b. Negotiate
c. Buy
d. Design collaboration
e. Supply collaboration

In the supply chain of any retailer the supplier does not play any role.
Supply chain design, planning and operation decisions play a significant
role in the success or failure of Big Bazaar. From its beginning, the Big
Bazaar invested heavily in transportation and information infrastructure
to facilitate the effective flow of goods and information. Big Bazaar
designed its supply chain with clusters of stores around distribution
centres to facilitate frequent replenishment at its retail stores in a cost
effective manner. Frequent replenishment allows stores to match supply
and demand more effectively than the competition.

Supply chain of Big Bazaar

Raising a purchase order to the vendor

by the category (In head office and
zonal office)

Delivery of the required (negotiated)

stock to the store or ware house by the
help of transporter (at company’s
expense)

Receiving of the material at the store Receiving of the material at the central
with all the required documents ware house (C.D.C.) Indore
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Document check by the security at the Weighing, counting of cartoons,

gate and in ward register is maintained generation of I.R. no. by putting
by following all the rules of S.O.P. information on SAP

Compare the material with the Stamp on P.O.D. copy and return to the
documents, stamp the documents, write transporter
information with signature of the

Transfer of the material to the store Pre in- warding by scanning the material
ware house against the inbound no. by E.A.N. and
article no.

Generation of the G.R.N. of the material Post in warding by generating G.R.N. of

after the scanning on S.A.P. as well as the in warded stock.
on REM against article no. or EAN

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Maintain in ward register by putting all Segregation of the material (M.C. wise
the required information and category wise)

Send the stock to the flour as per the Racking of the material by giving
requirement location to the rack as well as to the box
(for the maintenance of the W.M.S.

Send all the documents to the Out warding of the material from central
commercial office for the preparation of ware house to the store, after receiving
MIRO sheet (send to head office for S.T.O. from the store.

Posting of all the documents comes with

the stock from vendor, as well as comes
with S.T.N. to the commercial office for
the payment purpose and record.

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Receiving of the material at the store

against S.T.N.

1)Raising a purchase order to vendor-

Big Bazaar category maintains the flow of material from vendor to store
or from vendor to ware house to store. Category does not receive any
demand order from store or ware house. Actually category keeps the
record of movement of flow of material from ware house to store & also
per day & per week sale on the flour. On the basis of this data & also from
market research, category estimates the demand of customer & makes
purchase order to the vendor.

When we open a store we call different vendors then

after negotiation with vendor on prices & other condition & schemes we
provides them, vendor registration no. so purchase order is made against
this vendor no.& then vendor give us information about no. of items
presents in their manufacturing ware house for supply and we register
those items by vender code.

Mapping

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The process of determining locations and adjacencies of departments and

merchandise inside a store.

2. Delivery of the required (negotiated) stock to

the store or ware house by the help of
transporter (at Big Bazaar expense)-
After receiving purchase order from the category,
vendor delivers the material to the given location (store or ware house)
by the help of transporter hired by the vendor (transportation at vendor’s
expense) with the invoice copy and purchase order copy.

Document bring by the transporter with the stock are-

1. Consignee copy

2. P.O.D. copy

3. Purchase order

4. Invoice copy

5. A.S.N. copy

6. Quality check

7. Way bill (Out of state)

Conditions- 1.material should be according to the quantity given in

the purchase order.

2. Delivery should be at time.

3. Vehicle should be sealed pack at the time of delivery.

Packing guidelines-
1. Net weight of the packet should not be more than 25 kg.
2. BOPP tapes should be printed
3. Packaging with stretched wrapping
4. Packaging should be dry

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5. Label pasted on the packages should be clearly visible

3. Receiving of the material at the Big Bazaar

(Indore) store with all the required documents-
Category makes purchase
order for the store directly in case of immediate requirement and local
vendor. Especially in case of mobiles the material comes against invoice.
Generally at store material is received against S.T.N. Material is received
from vendor against invoice by following all the rules of S.O.P. Firstly
gate keeper check all the documents necessary at the gate & compare
the material with the invoice.

Paper check-
1. Receiving site
2. Supplying site
3. Invoice no.
4. H.U. no.
5. Material on paper
6. Gate pass
7. Cartoon counting

Gate keeper sign & stamp the document (invoice copy and purchase
order copy) .After that transfer the material to store ware house where
G.R.N. of the material is done after scanning by the ware house person.
This G.R.N. no. is written on the invoice copy with date and quantity
.According to S.O.P., date of receiving has been written on the cartoon
received by the ware house person .Scanning of the material is done
against each EAN no. and article no. in REM as well as in SAP. An inward
register is maintained by the ware house people as well as by the security
guard to keep the record of the inward material. Then after counting of
material, it is send to the store to sell. For the security purpose security
tags stitched on the material. Different types of tags with sensor are

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punched on the items. Tags are punched on items having cost more than
Rs.99

1. Hard tags-on cloths(Magnetic tags)

2. String tag-on cloths
3. Soft tags-especially on plastic, crockery, electronics etc.

All the material is designed on the Racks and

1. Gandola
2. Gap table
3. D- unit
4. Four arms unit
5. Eight arms unit
6. Step table
7. Bins
8. Hyper bins
9. Wall hanging

V.M. plays an important role in designing and visualization of the

material on floor.

What is visual merchandisation?

Visual merchandisation is briefly defined as presentation of a store and its
merchandise in ways that will attract the attention of potential customers
and motivates them to make purchase.

Purpose of visual merchandising-

1. Increase turnover

2. Image building

3. Influence buying behavior

4. Satisfy customers

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Role of visual merchandising-

To put forward the best of merchandise highlight in terms of colour,
quality, and price in the most aesthetically appealing way with 100%
clarity.

To ensure that all the information is communicated in an informed,

friendly and helpful and selling mode.
Arranged merchandise Easy to find
Easy to pick

Aesthetically pleasing

Easy to buy

4. Documents to commercial-
After the whole
process in Big Bazaar (Indore) store ware house, the entire documents
send to local commercial office for the payment purpose as well as for the
record. Commercial people maintain a MIRO sheet and send this sheet to
head office where category and commercial make cheque and send to
local commercial and then commercial pay to the vendor only by cheque.
Payment by the local commercial is done only in case of invoice.

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5. Receiving of the material at the central

ware house (C.D.C.) Indore –
Material is delivered (out ward) by
vendor to the CDC Indore (central ware house) by the hired transporter
with all the documentation. This time transporter is at the expense of
vendor. Material is received by the central ware house C.D.C. Indore by
follow all the rules of S.O.P. After that they do in warding of the material
followed by racking, segregation & out ward the material to nearest
located store(Big Bazaar Indore in this case) against S.T.O. In case of Big
Bazaar (Indore) the stock comes from central ware house C.D.C. Indore
(Dewas Naka).

Receiving of the material is done by the security in the ware

house. First of all documents are matched with the material. L.R. no. on
the consignee copy should match with L.R. no. on cartoons. Material is
weighed by the security person at the receiving gate and actual weight is
been written on the P.O.D. and consignee copy. This is for the reason that
we pay to the vendor according to this actual weight. After that we fill all
the information in SAP and generate inbound register no. and write this
no. on inward register. Then security stamp on POD copy and return it to
transporter. Then material is send inside for pre in warding, where
scanning of the material is done.

Post in warding is the next step in which we do the G.R.N. of

the material and forward this material for the segregation .After
segregation all the material is designed on the racks.

6. out warding of the material from central ware

house to the store, after receiving S.T.O. from
the store-
C
entral ware house people outward the material after receiving S.T.O. from
the Big Bazaar store. Ware house people generate the S.T.N. document

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and after packing of the material they stick new H.U. no. on the cartoons
(on which information and description of the material is given) and load
this material in the truck to deliver to the store. They send the copy of
S.T.N. and gate pass with the material to the store.

7. Document sends to commercial-

All the
documents received by the central ware house people should send to
local commercial for the payment purpose as well as for the record before
outing of the material.

No. of registers maintained in store ware house-

Check list for Big Bazaar Indore-

1. Salable items-
1. Inward

2. Outward

3. Return to ware house

4. Return to vendor

5. Security inward

6. Security outward

7. Discrepancy register

8. Stock handover register

2. Non salable register-

1. Inward
2. Outward
3. Damage tags register
4. Tags flow maintenance
5. Tags requisition format

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6. Inward

3. SIS-
1. Inward
2. Outward

4. Damage-
1. Ware house damage
2. Return to ware house

5. Others-
1. Returnable goods
2. NSM requisition
3. Free gift

Documents -
Invoice (bill)-
Invoice is the document send by the vendor with purchase
order. Invoice consists of the details of the product and gives us the
information about the material sended by the vendor and its rate and
amount.

Invoice document consist of –

1. Site address
2. Consignee
3. Buyer
4. Invoice no.
5. delivery note
6. Supplier reference
7. Buyers order no.
8. Destination
9. Term of delivery mode/term of payment/date

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10.Description of goods
11.Quantity
12.Rate
13.Discount%
14.Amount
15.total

Gate pass-
Gate pass is the document for the entry to the store. It
consists of following things.

1. Gate pass no.

2. Date
3. Site name
4. Delivery no.
5. Quantity
6. Packages
7. Total
8. Vehicle no.

Gate pass consist of a stamp of Big Bazaar contains following

1. Security inward no. date

2. No. of cartoons
3. Time
4. Signature of security

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S.T.N.-
S.T.N. is the document generate by the central ware house people when
they outward the material to the store. They send this document with the
material. It consists of the following things-

1. Delivery no.
2. Delivery date
3. Delivery note
4. L.R. name
5. L.R. date
6. Party address
7. Article description
8. Article no.
9. M.R.P.
10.Cost
11.Quantity
12.Amount
13.Total
14.LST/VAT Tin no.

S.T.N. consists of two stamps; one of in warding and second of out

warding. And stamp consists of

1. Security inward no./outward no.

2. Date
3. Quantity
4. No. of cartoons
5. P.O. no.
6. G.R.N. date
7. Vehicle no.
8. Security name and signature

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L.R. copy (consignee copy)-

This copy mainly consists of consignee no. and the
instruction given on the back side of the document, other things mentioned over
this document are

1. Delivery instructions
2. S.T.(TIN NO.)
3. Invoice no.
4. Date
5. Invoice value
6. Delivery site
7. Booking office address
8. Weight of the material

Vendor Ware house

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s S
S s

s
Ware house

Ware house

S s

Ware house

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In the supply chain of Big Bazaar mapping of the vendor is done by

negotiating on the price, quantity and quality. Vendor is provided with a
vendor registration no. Category receives the data of demand of material
S
and makes purchase order to the vendor. Category purchases the
material always in bulk to reduce the cost price of the material. With the
help of the diagram above I want to explain the whole scenario and role
of central ware house in the supply chain.

For the storage of the material purchased by the category,

they have two options. First they can make purchase order directly to the
central ware houses from where they can deliver the material to the
respective stores. Second they can store the material in the mother
distribution centre or regional distribution centre (if the material is for a
specific zone).And can deliver the material to the respective ware houses
and from ware houses to the stores.

If we take the example of C.D.C. Indore, supplying stock to

Big Bazaar Indore, Suppose category has purchase 1000 pre pack of the
formal shirts for the Big Bazaar Indore. Then in this case category will
make purchase order directly for the central ware house Indore.
Transportation of the material is done at the company’s expense. Central
ware house Indore will transfer the required stock of the shirts to store
(especially 40% of the stock is transferred to the store; rest of the stock
will be transfer at the next need).

But the real supply chain come in to play when category

purchase the stock in bulk. In the above diagram vendor is supplying
shirts to all the eleven big bazaar stores.Acoording to the negotiating
terms category have purchase eleven thousand pre pack of shirts for all
these registered stores in winter season. Then category will generate
purchase order to the vendor for the four central ware houses supplying
the stock to these eleven stores. These four central ware houses control
the flow chain of the material for these eleven stores. These central ware
houses will receive the stock and will transfer the required quantity to the
stores. Rest of the quantity will be stored in these ware houses for the
future immediate requirement. Material at the time of need is transferred
to the store against S.T.O. These central ware houses control nearest
stores to minimize the expenditure of transportation. Concept of ware
housing is to fulfil immediate requirement and storage of the material.

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Three flows in Supply chain

A supply chain is dynamic and involved the constant flow of information,

products and funds between different stages.

If we see in case of big bazaar provides the products as well as pricing

and availability of information to the customer. The customer transfer funds to
the big bazaar by purchasing the product present at the store.

Big bazaar conveys point of sales data as well as replenishment order to

the ware house or category that make purchase order to the vendor who
transfer the replenishment order via truck (transporter) to the store. Big bazaar
transfer funds to vender after the replenishment.Information is the driver that
serves as nervous system to create a coordinated supply chain. It is life-
line of SCM.Information must have the following characteristics to be
useful:

1. Information should be accurate.

2. Information should be accessible in a timely manner.

3. Information must be of the right kind.

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4. Information provides the basis for supply chain

management decision like

a. Inventory Transportation

b. Facility

Transportation of material in Big

bazaar-

S1
Ware
house 1
S2
Vendor

S3
Ware
house-2

S4

Transportation at Big Bazaar expense Transportation at

big bazaar expense

Transportation-
1. Transportation is movement of goods from one location to
another.

2. Transportation is the main artery of logistics and supply

chain management.

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Transportation charges paid by the Big Bazaar to the transporter are

17500/month up to 1500 kilo meter. If the distance is more than this then
4.50Rs per kilo meter.

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Concept of ware housing in Big Bazaar-

Ware house
is nothing but Company’s inventory for meeting immediate customer
demand. Ware houses have a very vital in role in supply chain of retail.
High degree of cost efficient working is essential for retail-chain
distribution.

Old Concept of warehouse

1. To store products: finished products raw material.

2. To maintain original quality of store material

3. A static Unit to hold products till sold (Cost Centre)

New concept of ware house invented by Big Bazaar-

1. Providing Logistic service in a cost effective manner

2. Making product available at right time, at right place, in

right quantity and quality at right cost

Functions of Warehousing in Big Bazaar-

Economic Functions
– Consolidation

– Break-Bulk

– Stockpiling

– Value-Added Services

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Functions of Warehousing- stockpiling

• Seasonal Storage of Products

• Woolen Garments

• Helps in smooth availability of products

Value added services means add different values to a single service to maximize
the profit and reduce the transportation cost to minimum. In this type of ware
housing we receive stock from a vendor and transport it to different nearest
stores.

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In this type of ware housing required ware house consolidate the material from
different vendors and then transfer it to different stores. This format of ware
housing is usually followed in Big Bazaar.

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In this type of ware housing ware house receive material from a vendor
but in bulk and then transfer it to different stores.

Operational Functions:
1. Receiving goods

2. Keeping records of Inventory

3. Store goods- appropriate place & min. area

4. Preserve quality- physical attributes

5. Proper handling- loading, Unloading, stacking

6. Order receiving- processing & filing

7. Dispatching goods

8. Preparing and releasing documents of transactions; keep

records

9. Marketing intelligence- between co & Customers

10. Other legal functions related to trade

Purpose of any supply chain management team is to reduce the supply

chain or to reduce the distance of transportation because as the distance
increases the cost per unit of the load moved also increases. In this whole
process two types of costs are there. First is the fixed cost that is the cost
which we have already paid to the vendor and second is the variable cost
that may vary from different reasons. But in the above curve this variable
cost varies due to increase in distance travelled by vehicle.

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Distribution of stores and ware houses is designed in such a way

that transportation charges reduce to minimum.

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Three type of distribution centre in Big

Bazaar supply chain-
1. M.D.C. (mother distribution centre) e.g.Tarapure ware house

2. R.D.C. (regional distribution centre) e.g.Hassan garh ware house

3. C.D.C. (centre distribution centre) e.g. Central ware house (Indore)

Central ware house (C.D.C. Indore)-

There are ten to twenty central ware house of Big Bazaar in India. C.D.C
Indore Dewas naka consists of 70000 square feet area on rent. This ware
house start from July23 2007 .These central ware houses are made at the
central location of some specific stores. And these are multipurpose ware
houses. For example C.D.C. Indore receives the stock from the vendor as
well as from the other ware houses (seasonal stock) and transfer this
stock to the next places where it is required in the supply chain. We have
three sites for storing the material. These sites are made to recognise the
place of a particular item. Central ware house Indore pays 3.50 Rs./
square feet rent of the ware house to the 3-PL Indo arya.

Site wise distribution of the material-

1. First site 8648 is consists of apparels(mens,womens and
kids),general merchandising(home
lenin,utensils,toys,stationary,autoacessories,luggage,plastic,footwe
ar,depots)
2. Second site 8649 consists of winter wears apparels
3. Site 6648 consists of home solution retail India Ltd.

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Site 8648-
This site in central ware house Indore consists of
300000 units, out of which 160000 units are of G.M. section and
140000 units are of apparels.

1.G.M. (160000 units)-

1. Plastic-60000
2. Auto accessories,depot,stationary-
5000
3. Luggage-10000
4. Utensils-20000
5. Foot wear-20000
6. Home wear-25000
7. Sports 10000
8. Toys-10000

Apparels (140000 units)-

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1. Kids-65000
2. Mens-45000
3. Ladies-30000

Site 8649-
This site consists of 550000 units in all out of
which 50000 units are of rain wear and umbrella.

1. Kids-250000
2. Men’s- 160000
3. Ladies-75000
4. Home wear-15000

PRIL PRIL
HSRIL

8649(winter wear season) 8648(G.M.&Apparels)

6648(ELECTRONICS)

31100 square feet 18000 square feet

20900square feet

In central ware house C.D.C. Indore we receive the material in three conditions

1. Against S.T.O.- Transfer from other ware house

2. In voice-from vendor against purchase order
3. R.S.T.O.-seasonal return from all over India

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Process in central ware house start with the receiving of the material.
Firstly we receive all the documents from the transporter. Documents are
different against all above three cases. In case of invoice we weigh the
boxes and count them also. We match the L.R. no. on box with the
consignee copy. Then after filling all the information in SAP we create an
inbound register no. and PT no. We stamp on P.O.D. copy and write the
I.R. no., actual wt., Date, no. of boxes, signature of the security guards
and return it to the transporter. In case if the boxes are open during
receiving of the material then we write down the condition of box open on
the transporter copy. We note down vehicle no. at the time of receiving
also.

Discrepancy note-
Discrepancy note is made and mail to the
category that look at it in case of damage and shortage of the material.
(Vendor management team and category have the right to take
action).Action is required under 48 hours.

In warding-
Next step is the pre in warding of the material in
SAP as well as in ware house. In SAP we do scanning of the material
against inbound no. and send the material for the segregation and
documents for the post in warding by doing G.R.N. of the material.

Racking and segregation of the material-

Before
designing the material on the racks we segregate the material firstly
merchandise category wise and then article wise. The idea behind this is
only to make easy picking of the material during outing of the material.
We segregate same merchandise category and after that we segregate
same article of the same merchandise category. And then we put all the
material on the racks with the required information. We also make stock
report.

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Conversion-U.O.M.(unit of measurement)-

Pre pack-same colour, different article, different size

Pre pack is the smallest unit, in this
case we have a pre pack of Dj&C shirts have same colour, different size,
different article.

Combination-medium-1, large-2, XL-2, XXL-1

Bag-different colour, same article-

Bag is the mediocre unit between pre pack
and cartoon. One bag may be of many pre packs. One bag has different
colour but same article.

Cartoon-
Bigger unit of packing. One cartoon has many bag, many
pre pack with same article.

W.M.S. (ware house management sheet)-

Ware house management sheet is formulated to keep the record of all

the items present in the ware house and especially location of those
items. When we receive a S.T.O. from a store then firstly we check the
availability of the stock in store by the help of W.M.S. sheet. And then
pickers pick the material from the location given by the W.M.S.
sheet.W.M.S. Sheet is to make the work process easy.

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Out warding of the material-

Out warding occur only against S.T.O. We receive S.T.O. from different stores
and then create delivery of that S.T.O. and create a pick list (Its a
document).Then we create H.U. no.(cartoon no.) and issue the material by goods
issued and give its print in form of S.T.N.

Scrap-
Scrap is the audit part. This is the material which is of no
use at present and was of use earlier. We send this material to the
registered vendor of scrap and vendor in return pay us by demand draft
and we post this draft to head office.

Reverse logistics ware house-

The concept of
reverse logistics ware house is implemented for damage stock. Four
reverse logistics ware house are there in India for four different zones. If
damage is done at the store or in ware house then it is send to reverse
logistics ware house of that zone.

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Cost monitoring or the expenditures of ware

house-
1. Ware house rent
2. Contract labour cost
3. Future logistics manpower cost
4. Security cost
5. Utility cost
6. Ware house packaging cost
7. others

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Some terms in supply chain of Big Bazaar-

Balanced Scorecard
Balanced scorecard is a strategic, measurement-based management
system, originated by Robert Kaplan and David Norton. It describes and
explains what has to be measured in order to assess the effectiveness of
strategies. In retail, by measuring operational efficiency, employee
performance and customer satisfaction and financial performance, long
term strategies can be linked to short term actions.

Barcode
A Barcode is an encoded set of lines and spaces of different widths that
can be scanned and interpreted into numbers to identify a product.
General Use: Scanning, identification
Bins
Bins are containers or fenced shelving for displaying merchandise.
Backdrop
A backdrop is a background for a display.
CPFR - Collaborative Planning, Forecasting and Replenishment
CPFR is the sharing of forecasts and related business information among
business partners in the supply chain to enable automatic product
replenishment. CPFR is designed to improve the flow of goods from the
suppliers, to the retailers' shelves. It also is designed to quickly identify
any discrepancies in the forecasts, inventory, and ordering data so that
the problems can be corrected before they negatively impact sales or
profits.

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CRM
Customer Relationship Management refers to the business strategies
designed to optimize profitability and customer satisfaction.
When used to describe software, CRM applications are those that focus on
relationships, rather than transactions.
COD
Cash-on-delivery is when the customer pays for merchandise when it is
delivered, instead of upfront.
Catalogue Sales
A catalogue is a collection of items for sale, usually with descriptive
details, arranged in an electronic listing or paper pamphlet or a book.
Catalogue sales are used to facilitate product orders, either by a retailer
from a vendor, or by a customer from a retailer.

The Category

The category is the basic unit of analysis for making merchandising

decisions.

In general, a category is an assortment of items that a customer sees as

reasonable substitutes for each other.

Men’s apparel and women’s apparel are categories. Categories have key
similar characteristics.

Retailers and vendors might have different definitions of a category.

Category Management

Category management is the process of managing a retail business with

the objective of maximizing the sale and profits of a category.

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Category management helps building clear accountability, as one person

is made accountable for success or failure of a category.

The second reason for using category management is that it is easier to

manage and maximize profits.

Cross-merchandising
This occurs when a retailer links the marketing of one product to the
marketing of another. A simple example is the use of food displays at
grocery stores. If a store wishes to promote the sales of cheeses, which
carry an attractive profit margin, the store may locate items consumed
with cheese nearby, e.g., crackers and breads, and may even display
them directly together or offer samples.

Electronic Data Integration

An inventory delivery system where retailers and manufacturers /
suppliers work together as partners. Also known as Quick Response.
Electronic Data Interchange / EDI
A system that enables retailers to integrate their purchasing activities
with their stores and/or with vendors.
Electronic scanner
Equipment capable of "reading" barcodes.
Exchange policy
Written rules to follow when merchandise is returned or exchanged for
other merchandise.
Fabric samples
Small pieces of fabric. Also known as swatches.
Gift Certificates
Gift Certificates are paper certificate or card that can be redeemed for a
specific value at a particular store. Gift Certificates are purchased by
consumers to be given as gifts in place of a specific item.

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Gross Margin

Gross margin = Net sales – Cost of goods sold

Gross margin % = Gross Margin/ net sales

How to calculate margin

C.P.+VAT=L.P.+Margin=M.R.P.

CP*VAT%=L.P.

Or C.P.+4% of C.P.=L.P.

M.R.P.-L.P. =MARGIN

MARGIN/M.R.P.*100=MARGIN in %age

Hence;

M.R.P.-L.P./M.R.P.*100=MARGIN in %age

%Margin*M.R.P./100=M.R.P.-L.P.

LP=M.R.P.-(%Margin*M.R.P./100)

LP=M.R.P. (1-%Margin/100)

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Electronic Article Surveillance (EAS)

A proven loss prevention technique that protects assets and merchandise
by utilizing security tags and labels and EAS detection equipment. EAS
systems provide security for buildings, entrances, exits and enclosed
areas by raising an alarm when items protected with an active tag or
label pass through the detection equipment.
Impulse Goods
Impulse Goods are products generally purchased without prior planning.
Impulse Goods can also be used to describe products placed for impulse
purchasing at the check-out areas of the store.
Kiosk
A kiosk is a small leased area, booth, or cart inside a store or mall.
Loss Prevention
Loss prevention is stopping or reducing loss from shoplifting, employee
theft, paperwork errors and poor safety procedures. Guarding and
securing the assets of a company.
Mannequins
Stylized plastic, wood, fibreglass, plaster, metal, or glass representations
of human form used for displays.
Markdown
A reduction in selling price.
Market segmentation
The process of dividing the total market into smaller sections based on shared
characteristics.

Marking
Marking merchandise with a price before placing it on display on the sales
floor.
Mark-up
The difference between the selling price and the cost of an item.

Merchandising (As a process)

Merchandising is an entire set of economic activities, extending from an
initial product idea to a finished product on display in a store.
Merchandising is the process of bringing products successfully to market,
especially in retail settings. The merchandising function requires

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coordination of many areas of a business, including marketing,

procurement, accounting, production, and warehousing/distribution.

Sales per square foot of selling space

Net sales divided by the square feet of selling space.

Same-Store Sales Same-Store Sales are sales revenue generated only

by those stores that have been open more than a year and have historical
data to compare this year's sales to the same time-frame last year. By
measuring the sales increase or decrease in the stores that have a history
(open a year or more) the industry can get a better feel for how it is really
performing, because this measure -- Same-Store Sales -- takes store
closings and chain expansions out of the mix.
Salvage goods
Merchandise that has been damaged in transit or storage
Seasonal merchandise
Products that are in demand at a certain time of the year, such as Diwali
or Back-to-School.
Stock Keeping Unit (SKU)

A SKU is the smallest unit available for keeping inventory control.

In apparel, a SKU usually means size, colour, and style.

e.g. Boys size 32, stone washed blue, comfort fit Levi’s is one SKU.

e.g. Surf Excel in I kg, 500 gms and 250 gms is three SKUs

Variety

Variety is the number of different merchandising categories within a

store.

Stores with a large variety are said to have a good breadth.

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E.g. Levi’s Stores have a limited variety - Jeans and related apparel and
accessories.

Assortment

Assortment is the number of SKUs within a category.

Stores with a large assortment are said to have a good depth. The terms
assortment and depth are used interchangeably.

e.g. Levi’s Stores carry a large assortment of Jeans and accessories.

Product Availability

Is defined as the percentage of demand for a particular SKU that is

satisfied.

Also referred to as the level of support or service level.

Signage
Signs, labels, shelf tags, and other identification signs within the store to
provide directions, prices, or information to customers on merchandise or
policies.
Stock turnover
A measure for determining how quickly merchandise is being sold.

Supply Chain Management

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Supply Chain Management covers the planning and management of all

activities involved in sourcing, procurement, conversion, logistics and
distribution. It also includes coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third-party service
providers, and customers.

Trading up
Selling where the salesperson persuades the customer to buy a more
expensive item or a larger quantity than originally intended.
UPC
The Universal Product Code is a standard for encoding a set of lines and
spaces that can be scanned and interpreted into numbers to identify a
product. General Use: Scanning, item level inventory and identification.
UPC-A is the most common barcode used in retail product marking in
North America.
Warranty
A warranty is a written guarantee of a manufacturer's or retailer's
responsibility. A warranty helps consumers feel confident about the
products they purchase.

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Research objective

‘To analyze/compare the buying preference of

customers towards three main players in retail i.e. Big
Bazaar, Reliance fresh and vishal mega mart’.

I have done survey by questionnaires on consumers/customers

in spite of the vendor simply because of the reason that more
or less a supply chain depends on the customer need. Category
should be aware with the need and preference of the
customers. This survey helps me a lot to know about the
different parameters proffered by the customers before
entering a retail outlet. So flow of the supply chain is depends
upon the customer purchase that in terms depends upon the
parameters fulfilled by the retail outlet. Because as we know
customer is the king of any retail outlet.

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Research design
A research design is a frame work or blue print for conducting
the business research project. It details the procedures
necessary for obtaining the information needed to structure
and solve business research problem. In this project we have
conducted exploratory and descriptive research to ‘To
analyze/compare the buying preference of customers towards
three main players in retail i.e. Big Bazaar, Reliance fresh and
vishal mega mart’.

Exploratory Research:
It is a type of research which has its primary objective the
provision of insight into and comprehension of the problem
situation confronting the researcher. We have done secondary
research as the part of Exploratory Research.

Descriptive research
A type of conclusive research that has its major objective to
describe something, usually business characteristics or
functions. Major methods employed in descriptive research are
survey and observation of that we have used survey using
questionnaires.

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Sample
A sub group of the elements of the population selected for
participation in the study. Sample characteristics called
statistics are then used to make inferences about the
population parameters. We have chosen sample of people out
side the retail outlets in three different locations of the Indore.

Sampling design process-

Define the target population- The collection of elements or
objects that possesses the information sought by the research
and about which inferences are to be made. So our target
population are people ready to buy monthly needed items
from the retail outlet according to there preference of
parameters.

Sampling technique- Convenient sampling

Convenient Sampling: A type of non-probability

sampling technique that attempts to obtain a sample of
convenient elements. The selection of sampling unit is left
primarily to the interviewer.

Sample size
We have taken sample of 100 Respondents out side the retail
outlets ready to buy form there..

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ANALYSIS
Results-

1. Age of the customers?

By survey on customers by the help of questionnaires

we have found that 48% of the respondents fall between 26-45
years age while 31% of the consumers fall between the age of
46-60 and remaining 21% respondents fall under the age of 15-
25.

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2. Annual income of the respondents?

22% of the respondents have their annual income of less

than 1.8 lakh , 45% of the respondents have their annual
income of 1.8 lakh to 4 lakh. These are the young and middle
aged people having effect of the globalization and are working
in the cities. They always like to spend their income in retail
outlets in spite of kirana shops or unorganized market. and
33% of the respondents have their annual income of more
than 4 lakh.These people have less percentage on the graph
may be because of the reason that these people purchase
from this format of the retail for only food items and in case of
other items they are more brand conscious.

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3. How much part of average monthly income spends in

retail outlet?

In the above chart by the horizontal axis i have shown four

different ranges of average monthly income people spend in a
retail outlet. By the help of chart i came to know that 30%
people spent less than 3000,40% people spent 3000,20%
people spent 5000 and 10% people spent more than 5000.

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4. Rank the Big Bazaar on the basis of following

parameters?

1. Low price>loyalty >brand>availability>customer

service>Quality
2. low price> Availability>customer
service>quality>loyalty>brand
3. Low price>availability>quality>brand
>loyalty>customer service

I offer three different sequences of parameters to the

respondents for the selection of Big Bazaar sequence. Means
what they have seen in big bazaar? What they like in big
bazaar? And what they want to see?

Here I found that 58% of respondents prefer second

sequence of the above given sequences while 35% prefer third
sequence and 7% of respondents prefer first sequence. By the
help of chart i came to know that people have seen the
strength of big bazaar in following order

Low price (offer)>availability of the product under a single

roof>good customer service>quality>loyalty>brand

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5. Widely accepted sequence of the following

parameters for Big Bazaar by distributing the marks by
respondents?

By giving marks to different parameters according to the

preference of respondents i came to know that most of the
respondents prefer low price as the first criteria to enter in Big
Bazaar with 35 marks, product availability as the second factor
with 25 marks, customer service as third criteria, quality as
fourth criteria and lastly brand and loyalty.

6. Widely accepted sequence of the following

parameters for the Vishal Mega Mart by distributing the
marks by respondents?

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If we see Vishal Mega Mart provides low price to the customers

becomes the first criteria to enter in the store with 30 marks,
availability of the product becomes the second criteria with 25
marks, and quality and brand with the same marks become the
next criteria then loyalty and customer service. One big
difference that i have seen between these two retail players is
that vishal mega mart doesn’t focus on the customer service as
much as Big Bazaar. That may be the negative point for the
Vishal mega mart.

7. Widely accepted sequence of the following

parameters of Reliance fresh by distributing the
marks by respondents?

Although Reliance fresh is total different segment of the

market in comparison to Big Bazaar and Vishal Mega Mart.
Here first criteria for most of the customers to enter in the
store are same as that of above two retailers. But here
customers concerned with the loyalty and brand name of the
company that we doesn’t have seen in above two co. They are
not bothered about the customer service and quality of the
store. At some extent they may be concerned with the
availability of the product. So distribution of the marks is as
given above in the chart.

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8. Rank the following parameters in the decreasing

order on the basis of your preference for a retail outlet.

1. Low price>loyalty >brand>availability>customer

service>Quality
2. Low price> Availability>customer
service>quality>loyalty>brand
3. Low price>availability>quality>brand
>loyalty>customer service

Here by the help of this response from the

respondent I came to know that what a customer expect from
a retailer? When I distribute marks of the respondents for the
specific parameters in pie chart then I came to know that
customer prefer the same sequence of parameters as Big
Bazaar gave us. Although level of preference for the different
parameters may be different but the sequence of parameters is
same.

In the pie chart above customer prefer low price as the first
criteria to enter in the retail store, availability as the second
criteria, respondents also give me a hint that consumers also
expect good customer service. Then they focus on quality and
other parameters.

Findings-

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On the basis of analysis of questionnaires it was

found that a large part of customers in the retail outlets is
youth and middle aged people working in cities in companies.
These people are affected by the storm of globalisation. These
people becoming westernize day by day. Big part of the
customers is getting income between 1.8-4 lakh.These people
are more aware about the fashion technology and spend nearly
3000 rupees in these retail outlets at monthly basis. Due to
busy schedule of the big cities these people prefer to buy
monthly need products under a single roof with good offers.

So price and availability becomes the most preferred

criteria for the customers to enter in to a retail outlet. In
today’s life every body want to live with dignity and expect
some respect. So customer respect in terms of customer
service becomes the next criteria to be preferred by the
customers.

Customer also need valve for money in terms of quality

of the product. If somebody is purchasing from retail outlet
then he/she expect that product should be of good quality.

Due to brand name of the company customer also expect

loyalty from the store and brand product also but not most.

So if we analyze the response from the pie charts then we

came to know that Big Bazaar is fulfilling the customer’s needs
in a controlled and organised way. Big Bazaar is providing the
same sequence of parameters as per the expectation of
customers. So big bazaar is leading in the hypermarket format
of the retail outlets in India.

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Objective-
To analyze/compare the buying
preference of customers towards three main
players in retail i.e. Big Bazaar, Reliance fresh
and vishal mega mart.

Dear Respondent,

Kindly helps us by filling the following questioner meant for

survey purposes. We assure that the information provided by
you will be strictly kept confidential and will not we shared any
other under circumstance

1 Name:

2 Age:

3 Genders: M/F

4 Occupation:

5 Annual income

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(a) <1.8lakh

(b) 1.8 to 4lakh

(c) more than 4lakh.

6 Do you prefer to buy daily need products from retail

outlets?

(a)Yes

(b) Sometimes

(c) If offer is there

7 How much part of your average monthly income do

you spend in retail outlet?

(a) 3000

(b) 5000

(c) More than 5000

(d) Less than 3000

8 Do you buy from a selected store every time or do you

keep on shifting stores?

(a)Shop from only one store

(b) Shop from few selected store
(c)Some times shift
(d) Keep on shifting

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9 While you go for the purchasing, you should compare

the weekly or Big day offer of these retail outlet with
each other.

a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

10 Do you prefer to buy food items or others from the

same store?

(a)Yes
(b)No
(c)Mostly
(d)According to the offer/scheme

11 Rank the Big Bazaar on the basis of following

parameters.

1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer

service 6.Loyalty
1. Low price>loyalty >brand>availability>customer
service>Quality
2. low price> Availability>customer
service>quality>loyalty>brand
3. Low price>availability>quality>brand
>loyalty>customer service

12 Give the distribution of marks for the following

parameters of Big Bazaar.

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1. Low price
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00

2. Loyalty
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

3. Brand
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

4Availability
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

5. Customer
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00
Service

6. Brand
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00

13 Rank the Vishal Mega Mart on the basis of following

parameters.

1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer

service 6.Loyalty

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1. Low price>loyalty >brand>availability>customer

service>Quality
2. Low price> Availability>customer
service>quality>loyalty>brand
3. Low price>availability>quality>brand
>loyalty>customer service

14 Give the distribution of marks for the following

parameters of Vishal Mega Mart.

1. Low price
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00

2. Loyalty
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

3. Brand
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

4Availability
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

5. Customer
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00
Service

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6. Brand
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00

15 Rank the Reliance on the basis of following

parameters.

1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer

service 6.Loyalty
1. Low price>loyalty >brand>availability>customer
service>Quality
2. Low price> Availability>customer
service>quality>loyalty>brand
3. Low price>availability>quality>brand
>loyalty>customer service

16 Give the distribution of marks for the following

parameters of Reliance fresh.

1. Low price
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00

2. Loyalty
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

3. Brand
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

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4Availability
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

5. Customer
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00
Service

6. Brand
5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,1
00

17 Rank the following parameters in the decreasing

order on the basis of your preference for a retail outlet.

1. Low price>loyalty >brand>availability>customer

service>Quality
2. Low price> Availability>customer
service>quality>loyalty>brand
3. Low price>availability>quality>brand
>loyalty>customer service

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Bibliography:
www.PRIL.com
www.wikipedia.com
www.google.co.in

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