You are on page 1of 23

ASSIGNMENT NO:1

STUDY OF CONSUMER PERCEPTION ON BIG BAZAAR

Submitted to:
Mr. LOKESH JASRAI

Submitted by:
DEEPAK SINGH Roll No.:

RR1003A74 Reg. No.: 11013081

Section: R1003

CONTENTS
INTRODUCTION

OBJECTIVES

REVIEW OF LITERATURE

RESEARCH METHODOLOGY

REFERENCES

Introduction
Liberalization of the economy in the nineties and the entry of large players in the retail business have brought the retail industry into spotlight. Big players and national retail chains are changing the rules of the game. After supermarkets, departmental stores and convenience stores, Indian retail has seen concept of hypermarkets coming of age. The hypermarkets are not new to the western countries. Players like Walmart, Metro have established hypermarkets in many countries. In India, hypermarket concept is in nascent stage, retailers like Pantaloons and RPG have started hypermarket operations and they are having plans to expand aggressively to all the regions of India. A large number of international retailers have evinced interest in India, despite the absence of favorable government policy for foreign players. Before go further we have to know about what is retail? The word retail is derived from the French word retailer which implies To cut again or to break bulk. Retailing is derived from the French Word retailer which means to cut a piece off. Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non-business use. Philip Kotler In general words retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is

any business enterprise whose sales volume comes primarily from retailing. Thus, Retailing can be defined as a set of business activities that adds value to the products and services sold to final consumers fir their personal, family, or household use. Any organization selling to final consumers whether a manufacturer, wholesaler or retailer- is doing retailing. It does not matter how the goods or services are sold (by HR Institute of Higher Education, Hassan Page Perception person, mail, telephone, vending machine or internet) or where they are sold (in store, on the street, or in consumer's home).

OBJECTIVES
i. To know the consumer perception towards the apparel brands of Big Bazaar. To measure the awareness about Big Bazaar Private label apparels.

ii.

iii.

To study the purchasing pattern of Big Bazaar consumers.

iv.

To study the determinants of purchase decision making.

v.

To know the customers satisfaction levels regarding Big Bazaar apparels. To measure the expectations of customers about Big Bazaar apparels.

vi.

REVIEW OF LITERATURE:

Anonymous. Businessline. Chennai: May 28, 2008, The consumer buys from these outlets because he gets the right quality at a lower price. Outlets such as Spinach, Big Bazaar, Reliance Retail and Subhiksha have been delivering quality produce at lower prices. Alongside, there are vast investments being made, which open up multiple employment opportunities of a different kind. The Government also gains substantially as all the taxes and duties are paid along the way and there are no leakages. Therefore, all the parties concerned stand to gain. However, there is one class that apparently gets affected adversely, which is the trader. Given that retail is generally unorganised, it is but natural that if there is a large retailer, it could replace several small ones. Home delivery services, the convenience of being next door, availability of small quantities of goods (like sachets and in low denominations), credit facilities, personalised service etc are some of the benefits that retain customer loyalty to these outlets.

Anonymous. Business line. Chennai: aug 18, 2010 - Big Bazaar's five-day Independence Day sale has done 'quite well' across all its formats, according to sources in the company. "Overall we have done well, contrary to the fear of impact of inflation and consumers not spending. For instance, on the last day (August 15), these two formats (Big Bazaar and Food Bazaar) recorded sales of over Rs 100 crore," sources told Business Line. Big Bazaar expected a 20 per cent

hike in Mahabachat sales over the same period last year and closed with sales of Rs 300-400 crore. "This year's revenue figures are yet to arrive from across the country," according to the source. This is the fifth edition of 'Mahabachat', a five-day annual shopping event across 210 stores of Big Bazaar and Food Bazaar. Anonymous. Businessline. Chennai: Aug 11, 2010, The Future Group-owned value retailer Big Bazaar expects a 20 per cent spurt is sales (over last year) during the fifth edition of its "the Mahabachat" annual shopping, which this year is being promoted as a fight against inflation. The retailer is eying revenues of Rs 350-400 crore from the five-day Mahabachat shopping festival starting on Wednesday. The Eastern region alone would account for about 16 per cent of the revenues garnered during the period, at about Rs 65 crore, according to Mr Manish Agarwal, Sales and Merchandising (East), Big Bazaar. "The expected footfall across the 25 formats in eastern region during this five-day period will not be less than Rs 20 lakh. Business growth during this period will be close to about 25 per cent," Mr Agarwal said, while announcing the launch of the shopping festival in Kolkata on Tuesday.

Anonymous. Businessline. Chennai: Jun 19, 2010, - A new Big Bazaar outlet was launched at Chennai's newest mall, Express Avenue, today. It is the fourth and the largest Big Bazaar in the city, spread across 70,000 sq. ft. Speaking at the launch,

This store is the largest outlet on a single level not only within the group but possibly in Chennai, he said. Besides Chennai, Coimbatore is the only other city in the State to have a Big Bazaar. About 2,000 sq. ft. is dedicated to a live kitchen and ready-to-eat section selling savouries, sweets and baked goods.Other categories of goods sold in the store include a variety of household items, luggage and electronics. There are 26 check-out counters as well as six express counters.

Anonymous. Businessline. Chennai: Aug 11, 2009, Big Bazaar, the country's largest hypermarket chain and part of Future Group, will offer over 160,000 products covering food grocery, apparel, footwear, toys, luggage, kitchenware, furniture, electronics items and many more at "exciting" prices for five days from August 12 at 116 Big Bazaar stores across the country, according to a press release issued by Future Group.

Anonymous. Businessline. Chennai: Aug 11, 2009, Big Bazaar, Thiruvananthapuram, is hosting a five-day 'Maha Bachat' special sale event as part of

the nation-wide campaign from August 12 to 16. 'Maha Bachat' offers are available across categories from food and grocery to apparel, footwear, toys, luggage, kitchenware, bed and bathware, home decor, furniture, electronics and fine gold jewellery, a company spokesman said. According to Mr Sadashiv Nayak, President, Concept, Big Bazaar, the five-d ay event has become synonymous with value shopping for customers across the country.

Anonymous. Businessline. Chennai: Sep 11, 2008, Big Bazaar has become a prime mover of this phenomenon over the years and has branded its current effort as 'Maha Bachat Sale '. Hometown branded its efforts as the 'Mano ya na Mano offer ', giving people an opportunity to recreate their homes. Vishal Retail called its programme 'Mera Bharat Mahan: Azadi Mehengai Se ' while Ezone the electronics special retailer called its effort the "blindfold sale". Nor was this all. Big Bazaar offered life insurance cover to every customer who shopped during the days of the sale. Prices too were at an all time low for some if not all products. The results have been fantastic for all formats of retail. On a single day, Sunday August 17, 2008 the Future Group's retail operations crossed a turnover of Rs 100 crore! Anonymous. Businessline. Chennai: Jul 10, 2008, With consumers beginning to downtrade, Big Bazaar has been the first one to record this trend. Speaking to Business Line, Mr Rajan Malhotra,

CEO, Big Bazaar said, "We have seen our sales growth surge by 24 per cent across categories and brands but led primarily by foods." Considering Big Bazaar was expecting a downtrend in sales post the summer holiday season, the trend has been reverse this year. As Mr Malhotra points out, "This is the first time that we have witnessed an uptrend in sales post the holiday season. There may be something more to it but inflation is the main reason people are looking at better bargains and we have seen this trend since July 1." 'Cream to Marie' Other value retailers like Subhiksha also believe that downtrading (buying cheaper) is happening more among food-based mass consumption products and is also witnessing a similar trend. Anonymous. Businessline. Chennai: Apr 15, 2008, Big Bazaar is not a hypermarket and is more of a value-for-money format and that is what the new company would stand for." Currently, Big Bazaar contributes 64 per cent of the Future Group's total turnover of Rs 7,000 crore. With its standalone status as a company, Big Bazaar is expecting to drive greater efficiencies in its back-end operations. As Mr Malhotra says, "There would be clarity for the concept as we become a separate company.

Anonymous. Businessline. Chennai: Mar 14, 2008, Seeing growing consumer interest in imported goods, particularly in the foods and wellness segment, retail major Future group has decided to open shop-in-

shops with the brand name 'Imported Bazaar' at all its Big Bazaar outlets in phases To begin with, the company has opened two such shops-in-shops in Hyderabad. It has tied up with Sankalp Retail (Future Group holds 28 per cent in Sankalp) to set up these stores. Next week, it will open two such outlets in Bangalore More outlets Addressing a press conference here on Thursday, Mr Soumitra Ghatak, Chief Executive Officer of Sankalp Retail Value Stores, said the company would open 150 such shops-in-shops by the end of 2009 "There is a huge appetite among the Indian consumers for the segments we are looking into.

Anonymous. Knight Ridder Tribune Business News. Washington: Aug 16, 2007, The five-day 'independence sale' of Big Bazaar, with some items discounted by nearly 60 percent to mark the 60th Independence Day, culminated across the country with people lining up for upwards of three-four hours before they could step foot into some of the stores.

Eric Bellman. Wall Street Journal. (Eastern edition). New York, N.Y.: Aug 8, 2007. pg. A.1, Many more Indian women are working today and don't have the time to visit several mom-and-pop stores. "I can't go to 10 different stores to get 20 different things. I'm a working mother," says Candice D'Souza, a 28-year-old public-relations firm manager, who recently became a convert to Mr. [Kishore Biyani]'s Big

Bazaar stores. Mr. Biyani has been studying Indian consumers for more than 20 years. Though many of his innovations are distinctly Indian, he credits icons of U.S. retailing as his inspiration. His copy of Wal- Mart founder Sam Walton's book "Sam Walton: Made in America" is battered from constant use. From Mr. Walton, Mr. Biyani says he learned how to "rewrite the rules" in retailing.

Businessline. Chennai: Mar 29, 2006. pg. 1, Mr Sanjeev Agrawal, President, Marketing, Pantaloon Retail, talks about the excitement it has created among housewives, "We at Big Bazaar had found that the housewife is really excited if she is able to dispose the 'kachra' of her house at a value price. Thus to add excitement to our customers who are mainly housewives, we hit upon this idea where the exchange value is higher by 4 to 8 times than that of the road side kabari wala."

Businessline. Chennai: Mar 9, 2006. pg. 1, Kishore Biyani is a man with a mission. Comparing his achievements in Indian retail to Richard Bach's Jonathan Livingston Seagull, at a recent presentation in a management school, Biyani showed slides of extracts from the book based on the life of the bird which wanted to fly higher and higher, to portray the heights reached by his own retail forays This would be based on micro-financing whereby we will be giving money to our lower-end consumers to make them

spend at our stores." Believing that consumption is development, Biyani intends spreading his operations to value seekers and to consumers beyond the lifestyle retail chain . According to Biyani, "Retail is about facilitating consumption and consumption equals development." "We believe that in the times to come, Pantaloon will play an active role in the social and economic development of the country.

Saurabh Turakhia. McClatchy - Tribune Business News. Washington: Apr 12, 2008, The Future Group, having successfully established Big Bazaar is now scaling it up aggressively. It has signed on Mahendra Singh Dhoni as the brand ambassador for its extensive collection of fashion apparel. Speaking to Hindustan Times, Rajan Malhotra, CEO of Big Bazaar said, "There will be five television commercials which will go on air in early May. We are yet to get final dates from Dhoni. While one day's shoot has been done, we need one more day with him. Mudra will work on the television commercials as the creative agency. The commercial will see Dhoni leading a fashion revolution with the tagline, 'Desh Badla -- ab vesh badlo'."An industry source, who requested anonymity said that at the time when Dhoni was signed on-some two to three months back, he was commanding endorsement fees of close to Rs 2 crore per year.

T.V. Mahalingam. Business Today. New Delhi: Jul 1, 2007. pg. 170, Chaware then floated the idea to the Big Bazaarheadquarters in Mumbai and the plan was okayed. And just as he expected, nearly 2,000 women flocked to see Adesh Bandekar, the host of Home Minister and the Big B of Marathi television, host a show at Big Bazaar at Sangli. In all, it is estimated that the market for food retailing in Sangli is about Rs 60 crore. Local retailers think that Big Bazaar has garnered 20-25 per cent of this segment. Says Harshe Sumant, a small grocer located a kilometre away from Big Bazaar:Today, of the 55-odd Big Bazaar outlets, nearly 16 are in small towns like Ambala, Nasik and Sangli. Going by its success in Sangli, there is a good chance that the bulk of its expansion will happen in smaller towns.

Virendra Verma. Business Today. New Delhi: Dec 14, 2008, Such aggression is typical of [Kishore Biyani] who has, over the past 11 years, built a retail empire that claims to touch the life of 200 million Indians, and that covers 61 cities and 65 rural locationsThey're all different pieces of Biyani's grand game plan of straddling the entire consumption space .Manpower costs have stabilised: This is significant because people is the second biggest cost for BiyaniCost efficiencies have got a legup as commodity prices fall: For instance, Biyani will save some Rs 13 crore annually just on plastic bags. Biyani, for his part, expects the intensity of his competitors to

reduce in such tough times, and points to that as just one of the many things going for him.

RESEARCH METHODOLOGY :
SAMPLING METHOD: A sample is considered during a research when the size of the population is very large. A set is chosen to represent the whole population; this set is called a sample. A sample is a representative of the population under study. Similarly a sample was chosen for the research and was chosen by a simple random sampling. SAMPLING FRAME: The sampling frame represents the group of Big Bazaar customers who were contacted during the survey. SAMPLING SIZE: The total sample size for the data collection for the research purpose was 50 respondents. DATA COLLECTION METHODS: The sources of data collection were: 1] PRIMARY DATA: The primary data is the first hand information collected during the research. These are the original observations collected from the targeted segment of different methods. The primary data is collected through structured questionnaires and direct interview with customers and with organization people.

2] SECONDARY DATA: The secondary data is collected through the materials given by the organization; books; retail journals and magazines and internet. TOOLS FOR DATA COLLECTION; Structured Questionnaires were the tools for data collection for the research purpose. The Questionnaire was neatly designed and constructed for the purpose in line with the objectives of the study.

Research Design

: Descriptive Research

Research Instrument questionnaire

Structured, un-disguised

Sample Method Sampling

Non-Probability

Population : Big Bazaar customers who were contacted during the survey.

Sample Element : Individual Respondents to Questionnaire

Sample frame : Addresses of all the Customer who will fill the Questionnaire

Sample Size

50

KEY CHALLENGES: 1) LOCATION: "Right Place, Right choice Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: HR Institute of Higher Education, Hassan Page 8 Perception * Investigate alternative trading areas. *

Determine the type of desirable store location * Evaluate alternative specific store sites. 2) MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store. 3) PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change. 4) TARGET AUDIENCE: "Consumer the prime mover""Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom HR Institute of Higher Education, Hassan Page 9 Perception . Perception Pantaloons Retail INDIA Ltd Shoppers Stop Bata INDIA Ltd Music World Entertainment Ltd

Judging the scope for growth in the INDIA retail industry many global retail giants are also entering the INDIAN retail market. They are: Tesco Metro AG Wall- Mart The scope for growth in the INDIAN retail market is seen mainly in the following cities: Mumbai Delhi Pune Ahmadabad Bengaluru Hyderabad Kolkata Chennai The scope of the INDIAN retail market is very vast. And for it to reach its full potential the government and the INDIAN retailers will have to make a determined effort 2.1.14 Functions of retailing: Retailers play a significant role as a conduit between manufactures, wholesalers, suppliers, and consumers. In this context, they perform various functions like storing, breaking bulk, holding stock, as a channel of communication, storage, advertising, and certain additional services.

REFERENCES:
Principles of marketing-Philip kotler and Garry Armstrong ( pg no. 142-144) Marketing management 12th edition- Philip Kotler ( pg no. 185-187) Organizational behavior 12th edition-Stephon P Robinsons(pg no. 72-83 http://bigbazaar.futurbazaar.com.jsp? page=storelocater http://yellowpages.sulekha.com http://proquest.umi.com/pqdweb? did=2248184201&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD http://proquest.umi.com/pqdweb? did=2114796591&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD http://proquest.umi.com/pqdweb? did=2111581621&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD http://proquest.umi.com/pqdweb? did=2099215701&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD

http://proquest.umi.com/pqdweb? did=1446046031&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD http://proquest.umi.com/pqdweb? did=952032151&sid=1&Fmt=3&clientId=129893&RQ T=309&VName=PQD http://proquest.umi.com/pqdweb? did=986195311&sid=1&Fmt=3&clientId=129893&RQ T=309&VName=PQD URL:http://proquest.umi.com/pqdweb? did=1024985001&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD http://proquest.umi.com/pqdweb? did=1024950971&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD http://proquest.umi.com/pqdweb? did=1256078821&sid=1&Fmt=3&clientId=129893&R QT=309&VName=PQD

THANK YOU