Specialization project on

“A STUDY ON MARKETING STRATEGY OF BIG BAZAAR”

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(Under University of Mumbai)

Submitted by

Sharad H. Yadav

Marketing

(Roll No. 171249)

Under The Guidance of

Prof.

2017-2019

Pillai Institute of Management Studies and Research

 CERTIFICATE

This is to certify that the project titles “ A STUDY ON MARKETING STRATEGY OF BIG
BAZAAR” is successfully completed by Mr. Sharad H. Yadav during the IV semester, in partial
fulfillment of Master’s Degree in Management Studies recognized by University of Mumbai for
the academic year 2017-2019 through Pillai Institute of Management Studies and Research. This
Project work is original and not submitted earlier for the award of any degree/diploma or
associate ship for any other University/Institution.

Name: Sharad [Link]

Date: (Signature of the Guide)

 DECLARATION

I hereby declare that the Project Report submitted by me to the Pillai Institute of Management
Studies and Research, is a bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree/diploma certificate or published any time
before.

Name: Sharad H Yadav

Roll No: 171249 Signature of the student

 ACKNOWLEDGEMENT

No task is single man’s effort. Any job in this world however trivial or tough cannot be
accomplished without the assistance of others. An assignment puts the knowledge and
experience of an individual to litmus test. There is always a sense in a success. The opportunity
to express my indebtness to people who have helped me to accomplish this task.

I would like to take this opportunity to acknowledge my gratitude to various people who have
helped me during successful completion of the project. Their systematic guidance has helped me
to complete project in systematic and smooth manner.

I feel highly indebted towards the Director of my institution Dr. Satish K. Nair and my faculty
guide Prof. for her constant guidance and support which helped me to make this project
successful.

I extend my gratitude to my college “Pillai Institute of Management Studies and Research”

for giving me this opportunity.

Last but not the least; it would be unfair if I don’t express my indebtness to my parents and all
my friends for their active cooperation which was of great help during the course of my training
project.

Any omission in this brief acknowledgement does not mean lack of gratitude.
[Link] Contents Page No

1 PART A
1.1 Industry profile
1.2 Brief company profiles
1.3 Structure of the Retail Industry in India

1.4 Pestel analysis

1.5 Michael Porter’s Model
1.6 How Did Big Bazaar tackle Porter’s forces?
2 PART B
2.1 Company profile
2.2 Internal analysis
2.3 External analysis
2.4 Research Methodology
2.5 SWOT Analysis
2.6 Marketing Strategy
2.7 ENVIRONMENTAL APPRAISAL
2.8 Challenges
2.9 Conclusion
2.10 BIBLIOGRAPHY
 EXECUTIVE SUMMARY

Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The
companies are fighting to win the hearts of customer who is God said by the business tycoons.
There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to
“BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has
created formats, which provide all items under one roof at low rates, or so it claims. In this
project, we will study its marketing strategies and promotional activities.

The research titled ‘A Study on marketing strategy of Big Bazaar” helps us to understand the
effect of promotional strategy which is responsible for attracting customer towards big bazaar
This study helpful to top level management to improve the present promotional strategy of BIG
BAZAAR.

The report deals with the impact of promotional activity which attracting customer towards big
bazaar.

The research was carried out as per the steps of Marketing Research. The well supportive
objectives were set for the study. To meet the objectives primary research was undertaken. The
data collection approach adopted was experimental research & survey research. The instrument
used for the data collection was observation & questionnaire. The target respondents were the
visitors of BIG BAZAAR, with the sample size of 100 for the study of sales management of the
company. Tables & charts were used to translate responses into meaningful information to get
the most out of the collected data. Based on those the inferences have been drawn with peer
supportive data.
 Part A
INDUSRTY ANALYSIS
 1.1 INDUSTRY PROFILE
Introduction

Retail means selling goods and services in small quantities directly to customers. Retailing
consists of all activities involved in marketing of goods and services directly to consumer for
their personnel family and household use.

The Indian retailing industry is becoming intensely competitive, as more and more payers are
Vying for the same set of customers. The major retail players are Pantaloon Retail, Shoppers
Stop, Reliance, etc.,

Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in
retailing in India signifies the beginning of retail revolution. India's retail market is expected to
grow tremendously in next few years. According to AT Kearney, The Windows of Opportunity
shows that Retailing in India was at opening stage in 1995 and now it is in peaking stage in 2006.
India's retail market is expected to grow tremendously in next few years. India shows US$330
billion retail market that is expected to grow 10% a year, with modern retailing just beginning.
India ranks first in 2005. In fact, in 2005 and 2006, India is the most compelling opportunity for
retailers, because now India is in peaking stage.

Sector details
1. Introduction to retail industries.
2. Retail word is derived French word retailer means to cut off a piece.
3. Retailing includes all the activities involved in selling goods or services to the final
customer for personnel or non-business use.
4. Supermarket is a retailing of a wide variety of consumer products under one roof, ample
stock, stock of several brands & extended business hours.
1.2 Brief company profiles

History of retailing

Retail concept is old in India. World’s first departmental store started in Rome. Today’s kirana
stores are based on Manusmriti & Kautilya’s [Link], Melas, Mandis & door to door
salesmen are traditional Indian retail.

Vishal Mega Mart is a retail sector, which is providing good quality of products in very
reasonable price than its competitors. Retailing and wholeselling consist of many organizations
designed to bring goods and services from the point of production to the point of use.

Retailing includes all the activities involved in selling goods or services directly to final
consumers for their personal, non-business use. Retailers can be classified in terms of store
retailers, non-store retailing, and retail organizations.

Store retailers include many types, such as specialty stores, department stores, supermarkets,
convenience stores, superstores, combination stores, hypermarkets, discount stores, warehouse
stores, and catalog showrooms. These store forms have had different longevities and are at
different stages of the retail life cycle. Depending on the wheel-of-retailing, some will go out of
existence because they cannot compete on a quality, service, or price basis.

Non-store retailing is growing more rapidly than store retailing. It includes direct selling (door-
to-door, party selling), direct marketing, automatic vending, and buying services.

Much of retailing is in the hands of large retail organizations such as corporate chains, voluntary
chain and retailer cooperatives, consumer cooperatives, franchise organizations, and
merchandising conglomerates. More retail chains are now sponsoring diversified retailing lines
and forms instead of sticking to one form such as the department store.

Retailers, like manufacturers, must prepare marketing plans that include decisions on target
markets, product assortment and services, store atmosphere, pricing, promotion,

And place. Retailers are showing strong signs of improving their professional management and
their productivity, in the face of such trends as shortening retail life cycles, new retail forms,
increasing intertype competition, and polarity of retailing, new retail technologies, and many
others.

Wholesaling includes all the activities involved in selling goods or services to those who are
buying for the purpose of resale or for business use. Wholesalers help manufacturers deliver their
products efficiently to the many retailers and industrial users across the nation. Wholesalers
perform many functions, including selling and promoting, buying and assortment-building, bulk-
breaking, warehousing, transporting, financing, risk bearing, supplying market information, and
providing management services and counseling. Wholesalers fall into four groups. Merchant
wholesalers take possession of the goods and include full-service wholesalers (wholesale
merchants, industrial distributors) and limited-service wholesalers (cash-and- carry wholesalers,
truck wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order
wholesalers). Agents and brokers do not take possession of the goods but are paid a commission
for facilitating buying and selling. Manufacturers' and retailers' branches and offices are
wholesaling operations conducted by non-wholesalers to bypass the wholesalers. Miscellaneous
wholesalers include agricultural assemblers, petroleum bulk plants and terminals, and auction
companies.

Wholesalers, too, must make decisions on their target market, product assortment and services,
pricing, promotion, and place. Wholesalers who fail to carry adequate assortments and inventory
and provide satisfactory service are likely to be bypassed by manufacturers. Progressive
wholesalers, on the other hand, are adapting marketing concepts and streamlining their costs of
doing business.
1.3 Structure of the Retail Industry in India

Unorganized Retail Sector

The unorganized retail sector basically includes the local kiranas, hand cart, the vendors on the
pavement etc. This sector constitutes about 98% of the total retail trade. But Foreign Direct
Investment in the retail sector is expected to shrink the employment in the unorganized sector
and expand that in the organized one.

Organised Retail Sector

In the organised sector trading is undertaken by the licensed retailers who have registered
themselves to sales as well as income tax. The organised retail sector have in their ambit,
corporate backed hypermarkets and retail chains. The private large business enterprises are also
included under the organised retail category.

The organised retail sector can be further subdivided into:

Instore Retailers
This type of retail format is also known as the brick and mortar format. These retail stores are in
the form of fixed point sale outlets. They are specially designed to lure the customers. There are
different types of stores through which the instore retailers operate.

Branded Stores appear in the form of exquisite showrooms. Here the total range of a particular
brand is available and the quality of the product is certified by the government.

There are also multi brand specialty stores that sell a series of brands so that the consumer can
choose from the wide array of brands.

Department stores have a large number of brands and products catering to all basic needs to
luxurious items as well.

Supermarkets are basically self-service retail stores. Discount Stores offer commodities at
reduced prices. In Hyper Marts customers have wide variety of products to choose from and they
are also available at discounted rates.

Convenient stores are located in prominent places within the reach of majority of the customers
and do not operate in stringent work hours.

Shopping Malls are a storehouse of a large variety of retail shops situated close to each other.

Retail Formats in India

The retail formats in India can be categorized into the traditional and the modern forms. The
traditional format includes Kiranas, street markets, kiosks and multiple brand stores.

The modern format, on the other hand includes supermarkets, hypermarkets, department stores
and specialty chains.

In discussing about the structure of the retail sector in India we cannot forgo forecourt retailing
and trade parks.
Trade parks
Trade parks are basically business complexes that promote international trade. The global
players here have access to the top Indian exporters. To the buyers this would prove to be a boon
since they do not have travel to far off towns to enter into business deals with the exporters,
especially in places where infrastructure is very poor. By this the exporters not only enhance
their visibility but they also enjoy a host of other advantages. They can design libraries, studio
etc, in order to attract potential customers.

Forecourt Retailing
This type of retailing is done by the oil companies in order to increase their revenue. They not
only deliver fuel but also offer other services to its customers.
1.4 Pestel analysis
Pestel analysis is a tool to understand the environment in which business operates, & the
Opportunities & threats that lie within it. By understanding the environment in which it operates,
it can take advantage of the opportunities & minimizing the threats. Specifically, PESTEL
analysis is useful tool for understanding risks associated with markets growth or decline &
directing business to grow.

• Political factors
• Economic factors
• Socio-cultural factors
• Technological factors
• Environment factors
• Legal factors

A PESTEL analysis is a measurement tool, looking at all the external factors of the organization.
It is often used within a strategic SWOT analysis (strength, weaknesses, opportunities & threats
analysis)

Political:
Political factors like government policies and regulation of the retail industry affect its revenue
and profitability. The political environment affects so many things including economic
environment of a nation and international supply chains of businesses. Political stability means
better business because political disruption leads to the disruption of supply chain and sales.
Moreover, political issues can also become hindrance to smooth business operation. The anti-
trust issues have continued to trouble Amazon and the issue seems to have reignited with Trump
as president. In all the nations, the business environment is affected by the political landscape.
The Asian economy is growing at a faster rate than other parts of the globe. However, the
government and Red tape can be a big problem in the Asian nations. For the big International
retailers it can be quite difficult to expand into the Asian countries. India still has difficult laws
and restrictions on Foreign Direct Investments. All these factors can make it difficult for the
retail brands to operate profitably in the international environment.
Economic:
Economic factors are always very important in the context of trade and business. The state of the
world economy decides the state of sale and profits for the industry. The world economy has
rebounded and is growing. Economic growth means that people are going to spend more on
shopping. However, even in the time of recession, the retail industry had maintained impressive
sales. In 2015, it achieved global sales of $20.8 trillion. Based on the economic scenario
worldwide, the retail industry is predicted to have grown to $28 trillion by 2020. The labor
market and the economy both are in very good shape and an increase in disposable income has
also boosted consumer confidence. All of these are very good signs for the retail industry. The
better the shape of the economy, the higher will be the revenue and profits for the retail brands.
Better economic scenario means a growth in sales and overall better shape of the retail sector.

Social:
Social trends are also a major impact on the retail sector and its profitability. Demographic
changes and changing consumer preferences are going to have a deep impact on retail sector.
The millenials have different preferences than the previous generation. When it comes to
customer service they want more personalized service. Retailers will have to change the way
they serve their customers and design their service experience better to lure in millenials in
higher numbers. Demographic changes have also affected the popularity of products. the
technological products are in more demand than ever. The demands of the new generation are
much different than the older generations. The importance of customer service is growing and a
lot of retailers’ popularity will depend on how well they have crafted their customer experience.
More focus shall have to be on customer engagement.

Technological:
Technological factors are now all the more important whether in terms of supply chain, customer
service or sales. The growth of digital technology has also increased the number of players in the
retail industry. Technology affects several things including user experience. If e-retail has
enjoyed exponential growth then it is because of the additional convenience provided by
technology. More and more retailers are trying to make better use of technology to make the
customer experience better. A number of new technologies like AI and cognitive intelligence are
going to change the retail landscape in the coming years. Even cloud computing, IoT and
Distributed intelligence are going to have a deep impact on the retail sector. In the coming years
several more things will be determined by technology which will remain at the center.

Environmental:
Like the other industry sectors, the retail sector is also affected by the sustainability concerns.
Packaging, waste reduction, renewable energy and several other concerns related to
sustainability are there before the retail sector. The big brands like Amazon and Walmart have
already invested a lot in reducing their carbon footprint and in renewable energy. Apart from
that the focus is also on packaging and sourcing in an environmentally responsible
manner. Amazon is always driving improvement in packaging sustainability across the entire
supply chain. It is focusing not just on reducing its carbon footprint but also on achieving 100%
renewable energy usage in the long term.

Legal:
The legal factors are also just as important for the retail sector. There are so many laws related to
business and employment that affect it. Labor laws are particularly a big pain for the retailers
who have to maintain low prices to remain competitive. Walmart has had so many tussles with
laws over labor related issues. Apart from that, the other laws like product and packaging related
laws also apply to the retail sector. Overall, the legal scenario is quite complex and retailers have
to be cautious since any violation can result in big fines. Both Amazon and Walmart have had to
deal with their fair share of legal issues in the past. These laws and the level of legal scrutiny
differ from nation to nation and everywhere the retailers have to be cautious about compliance.
1.5 Michael Porter’s Model

Threat of New Entrants:

 Economies of scale (minimum size requirements for profitable operations)

- The new entrants that are entering the retail scenario today are those which have with
them a lot of backing from the financial institutions who are willing to finance their
ventures.
- Taking for example the case of Reliance Fresh which is entering the industry with a
corpus of Rs. 25,000 crore.
- E.g. Reliance Retail, which made its debut on 3rd November, 2006, in Hyderabad with
the opening of a cluster of 11 stores and which now has 22 stores in operation in
Hyderabad, Secunderabad and Jaipur is gearing up to enter its home state Gujarat with a
big bang.
 High initial investments and fixed costs
- The cost of initial investments is very high as the prices of real estates have started going
very high.
- The recovering the initial costs would take a long time as the initial phase will be
involved in attracting the customers and it will take time until customers will become the
regular.
- Companies coming in are not wary of the high initial costs involved as they are putting
their money in for the long term as the retail industry in India is only in its nascent stage.

 Cost advantages of existing players due to experience curve effects of operation with
fully depreciated assets
- Existing players have the first mover’s advantage in the market.
- They already have their brand value set and the customers are aware of the brand.

 Scarcity of important resources, e.g. qualified expert staff

- As there is rapid expansion in this industry and there are more and more new players
coming in.
- The availability of skilled labor is very scarce in the current scenario.
- The existing staff is already employed by existing players.
- Due to a lot of poaching in the industry, the pay packets keep getting higher to avoid
incurring training costs.
Threat of Substitutes

 Results of an AC Nielsen study for the period 1993-99, published in 2000 showed
`independent retailers' declined by 21 per cent while `multiple retailers' increased by 18.5 per
cent.
 Indians love to chat with the shopkeeper and the purchase decision is heavily influenced by
the `expert' comments of the shopkeeper.
 The friendly greeting and affection of your regular grocer cannot be easily replaced.
 The big retailers tend to be impersonal, there is no help around, and the sheer range of choice
can be confusing.

Competitive Rivalry between Existing Players

 There are many players of about the same size
The Shoppers Stop headed by the Raheja Group, Vishal Mart in North India, Spencer
Hypermarket Formats are the existing players who are about the same size as the Big Bazaar
and similar expansion policies.

 There is not much differentiation between players and their products

The existing players don’t have much difference in terms of the product range they are
offering to the customers. This thus results in price competition.

 Low market growth rates

The growth of a particular company is possible only at the expense of a competitor and
capitalizing on the mistakes committed by them.

 Barriers for exit are high

High investments by the players make it very difficult for them to exit the current scenario in
the industry.
Power of Suppliers:
Historically, retailers have tried to exploit relationships with suppliers and decrease their
bargaining power. In the Indian retail industry as well; suppliers tend to have very power reduced
because of increasing dependency on big ticket stores such as Spencer’s, BigBazar and Reliance.
However, since organized retail still covers a smaller share of the pie, suppliers can wield some
power to increase their margins.

Power of Buyers:
Individually, customers have very little bargaining power with retail stores. It is very difficult to
bargain with the clerk at, say Spencer’s, for a better price on grapes. But as a whole, if customers
demand high-quality products at bargain prices, it helps keep retailers honest. The other side of
the argument could be that the increasing availability of such retail stores has offered the
freedom to pick and choose the best retail shop thus reducing the dependency on one retailer.
1.6 How Did Big Bazaar tackle Porter’s forces?

Buyer Power:
Big Bazaar sells its products at low price to reduce buyer’s power. So far this has worked
wonders for Big Bazaar and even their punch line is ‘Isse sasta aur accha kahin nahi’. Big Bazaar
provides a range of products which gives its customers an unparallel variety. Big Bazaar
provides not only products but also value added services to its customers. Big Bazar’s pricing
philosophies include the Everyday Low Price, Genuine products with warranty, Free Shipping
and Easy Returns.

Threat of substitute:
Big Bazaar basically sells daily usage consumable items which can’t be replaced. People have to
buy food, snacks, soap, cosmetics, and cloths. Considering Kirana India’s Multi-Brand Retail
Industry – Big Bazaar stores as substitutes, big bazaar cannot penetrate into residential areas and
set up shop there due to size requirements. This is where the kirana shops have an edge as they
thus become more accessible.

Barrier of Entry:
Big Bazaar implemented these strategies to make barrier of entry high:

• Big Bazaar created a big brand for itself. It did not try to start with humble beginnings the way
MORE (Aditya Birla venture) or other players went.

• Big Bazaar established inimitable processes and supply chain technology.

• Big Bazaar operated on large scale which would take years for a new company to imitate due to
high fixed costs and path dependency.

Supplier’s power:
On the one hand they can wield pressure on the smaller kirana stores while on the other the
bigger players pressurize them to reduce prices. Organized retail today is a small portion of the
entire retail industry in India. As the industry grows, suppliers will face diminishing bargaining
power due to heavy dependence on one retailer.

Big bazaar has already made sure that its supplier’s offer them the best price

• Big Bazaar is increasingly selling a major share of it supplier’s items; hence suppliers are
bound to depend heavily on Big Bazaar.

• Some of the suppliers don’t have their own established brand and depend on Big Bazaar
 Part 2
Company Analysis
2.1 Company profile

Big Bazaar is an Indian retail chain of hypermarkets, discount department stores, and grocery
stores. The retail chain was founded by Kishore Biyani under his parent organisation Future
Group, which is known for having a significant prominence in Indian retail and fashion sectors.
Big Bazaar is also the parent chain of Food Bazaar, Fashion at Big Bazaar (abbreviated as fbb)
and eZone where at locations it houses all under one roof, while it is sister chain of retail outlets
like Brand Factory, Home Town, Central, eZone, etc.
Founded in 2001, Big Bazaar is one of the oldest and largest hypermarkets chain of India,
housing about 250+ stores in over 120 cities and towns across the country.
Big Bazaar is a household name that is used synonymously with ‘retail’ in India. We represent
the requirements of a typical Indian home. Founded in 2001 by Kishore Biyani, we as a retail
chain operate under the parent organisation – Future Group – that holds a significant prominence
in the Indian retail and fashion sectors.

Big Bazaar is one of the oldest hypermarket chains that houses around 250+ stores in the
country. We cover three essential categories in Indian retail: home, food, and fashion. Popular
retail chains – like the Food Bazaar and fbb form an integral part of Big Bazaar’s identity. The
latter (i.e. fbb) has exponentially grown into a major brand that epitomizes fashion in India.

In spite of covering a wide gamut of consumer essentials at reasonable prices, we are best known
for our understanding of our customers’ evolving needs and comforts. In a fast-paced world, we
are perceived as a thought leader who relies on traditional Indian values of seva or ‘care for the
customer’ while remaining firmly futuristic in taking business decisions that fuel better quality
and efficiency.
Big Bazaar is not just another hypermarket; it caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for Indian customers. We
guarantee the best products at the best prices. With the ever-increasing array of in-house brands,
we have opened doors in the world of fashion and general merchandise, including home
furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise
you. And this is just the beginning.

Vision
“To deliver everything, everywhere, every time, to every Indian customer in the most
profitable manner.”

Mission
We share the vision and belief that our customer and stakeholder shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.

2.2 Internal Analysis

Brief detail of the Top management

Kishore Biyani
Chairman & Managing Director

Kishore Biyani is the founder and Group CEO of Future Group. Widely credited as the pioneer
of modern retail industry in India, Kishore Biyani is a mentor and role model for many Indian
entrepreneurs and a thought leader in Indian business.
Over the past two decades he has created and leads some of India's most popular retail chains
like Big Bazaar, Central, Brand Factory, Foodhall, fbb, among others. Over time, various retail
chains like Nilgiris, Aadhaar, Easyday, Heritage, HyperCity and others have also become part of
Future Group. These retail chains are present in more than 250 cities across India and attract over
500 million customers footfalls annually. Simultaneously, he has also led the creation of a wide
portfolio of consumer goods brands in fashion, food and electronics space, that are distributed
through the group's retail chains and various other modern retail networks in the country. The
group also made substantial investments in technology, analytics, food processing, logistics and
warehouse networks, provides mentorship and investments to many Indian entrepreneurs and
brands and operates joint ventures with Clarks, Generali Group, Hidesign, among others.

Rakesh Biyani
Joint Managing Director

Mr. Rakesh Biyani is a Joint Managing Director of Future Retail Limited. He has been
associated with the company for over 20 years.
In his executive role as the Joint Managing Director, Mr. Rakesh Biyani leads the management
and expansion of the company’s flagship formats, Central, Big Bazaar and Food Bazaar. Rakesh
is actively involved in Category Management, Retail stores operations and Information
Technology.
Rakesh has done an Advanced Management Program course from Harvard and is a commerce
graduate from HR College, Bombay.
2.3 EXTERNAL ANALYSIS
COMPETITOR ANALYSIS
Below are the 4 main Big Bazaar competitors

'Reliance Retail' Ltd. is a subsidiary company of Reliance Industries Limited. Founded in

2006, it is the largest retailer in India in terms of revenue. Founder of Reliance Retail is
Mukesh Ambani and V Subramaniam is CEO. Its retail outlets offer foods, groceries,
apparel and footwear, lifestyle and home improvement products, electronic goods, and
farm implements and inputs. The company’s outlets also provide vegetables, fruits, and
flowers. It focuses on consumer goods, consumer durables, travel services, energy,
entertainment and leisure, and health and well-being products, as well as on educational
products and services. It had a total of 3,837 stores in April 2018 in India with an area of
over 17.7 million square feet across 750 cities, with yearly revenue of over ₹690 billion
($10 bn US).
Originating in India in the year 1999, Lifestyle is a retail fashion brand which comes under
Dubai-based retail and hospitality conglomerate, the Landmark Group.
Lifestyle's inventory consists of several national and international brands, and its product
categories include Indian and western apparels, footwear, handbags, beauty products, and
fashion accessories for men, women, and children.
In India, Lifestyle Stores is a part of Lifestyle International Pvt. Ltd, with sister brands
Home Centre, Max, and Easybuy.
Lifestyle International Pvt. Ltd has witnessed a compounded annual growth rate of 25%
over the last three years, and has been ranked 10th on the list of Best Companies to Work
for in 2015
More. is a retail store brand of Aditya Birla Retail Limited (ABRL). ABRL is the fourth largest
supermarket chain in the country after Future Group, Reliance Retail and D-Mart. ABRL
provides online grocery retail services in Bangalore, NCR, and Pune through its e-Commerce
website MyMoreStore.
Aditya Birla Retail Limited provides customers products under its own labels

Shoppers Stop is an Indian department store chain, owned by the K Raheja Corp Group. There
are 83 stores across 38 cities in India, with clothing, accessories, handbags, shoes, jewellery,
fragrances, cosmetics, health and beauty products, home furnishing and decor products.
2.4 Research Methodology

Since the study is on retail sector first the detail study of the store is been conducted about its

Management team its structure the number of departments which all brands does the store has,

who are its suppliers about its warehouses.

Objective of the study

1. To understand the marketing strategy of Big Bazaar.

2. To analysis how well the company’s marketing strategies attract customer.
3. To understand the expectation and requirement of customer.
4. To understand how big bazaar convert customers in consumers

Primary data
Primary data was collected from the feedback of the customer of the big bazaar with the help of
questionnaire.

Secondary Data
Secondary data was collected from various newspapers, magazines and internet.
2.5 SWOT Analysis

Strengths:

1) Good supply chain management

2) Variety of products available under one roof
3) Higher PROFIT margins on sold products
4) Good brands available at affordable prices
5) Cheap goods available to the consumers due to the absence of middlemen

Weakness:

1) High attrition rate

2) Employees are not well trained in handling esteemed customers
3) Substandard Quality of goods
4) There is no proper channel of advertising for promoting their products

Opportunities:

1) Huge potential rural market to be tapped

2) Opportunities available in the cosmetics industry

Threats:

1) Many major players are foraying in the retail sector like walmart,reliance which may hamper
their margins
2) Customers may lose their trust on the company due to the supply of substandard products and
may even switch to some other company.
 CURRENT SCENARIO

India rank first in terms of emerging market potential in retail sector. Current retail market is US
$ 215 billion. Growth rate of retail sector in India is 8-10% per annum.
Near about 12 million retail outlets are spread across India.
FDI in retail sector increases from US $ 3.1 billion in 2003 to over US $7.6 billion in 2009.

TYPES OF RETAILERS
Retailers are broadly classified into 3 categories

 Food Retailers.
 General Merchandise Retailers.
 Service Retailers.
TECHNOLOGIES USED IN RETAILING SECTOR

 In-store technologies-
 Interactive kiosks
 Virtual display case
 Radio Frequency identification tags
 Self-scanning & self-checkout system
 Body scanning

 Online technology-
 Online display of products
 Online shopping
2.6 Marketing Strategy

The company is working out over Rs 100 crore (Rs 1 billion) for this massive expansion of the
'Big Bazaar' brand across Mumbai, Kolkata, Nagpur, Bhubaneswar and Ahmedabad. Biyani is
also offering innovations that retailers abroad don't offer. He has recently launched a new section
in his hypermarket called Gold Bazaar where jewellery is bought and sold.

And he is also setting up Victoria Memorial, a 150,000 sq ft shopping mall in Bangalore.

Victoria Memorial will experiment -- following the Selfridges model -- by displaying high-
profile readymade brands and collecting a commission on their sales.

The pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at Big Bazaar is
based on the following techniques:

 Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers the
lowest available price without coupon clipping, waiting for discount promotions, or
comparison shopping.
 Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big
Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga
Pooja).
 Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and
non-peak hours or days of shopping is also a pricing technique used in Indian retail, which
is aggressively used by Big Bazaar.

e.g. Wednesday Bazaar

 Bundling: It refers to selling combo-packs and offering discount to customers. The combo-
packs add value to customer and lead to increased sales. Big Bazaar lays a lot of
importance on bundling.

e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22)

5kg oil + 5kg rice + 5kg sugar for Rs 599

2.7 ENVIRONMENTAL APPRAISAL

EXTERNAL ENVIRONMENTAL FACTORS (4Ps OF MARKETING):

"Marketing" is the promotion of products, especially advertising and branding. Marketing

practice tends to be seen as a creative industry, which includes advertising, distribution and
selling. Marketing mix is a deciding factor in formulating marketing techniques for the success
of a particular brand, commodity or company. The components of marketing mix are:

 Product
 Price
 Promotion
 Place

PRODUCT

Big Bazaar offers the maximum variety for each category of product. The product is the same in
every store in the city but the brand options are more in Big Bazaar. Also, the quantity for each
product is not limited to large packs only. The commodities sold by the retail chain also includes
its “own products” (Private Labels) which get a ready distribution network. The own products of
Big Bazaar include My World fashion magazine which is not available anywhere else. So costs
are low for such products. Also Big Bazaar has adopted different customized products with
diverse merchandise.

PRICE

Price is the critical point in a competitive industry. Big Bazaar works on a low cost model. It
considers its discounted price as its USP. There is an average discount of 7-8% on all items in
respect to their MRP. Prices of products are low because it is able to secure stock directly from
the manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and
transportation. These all factors help this retailer to keep low prices. The startegies followed at
Big Bazaar are:

 Low margin, High sales volumes

 Low Interest Financing
 Centralized sourcing
 Discount pricing
 Value pricing
 Promotional pricing-Psychological discounting

-Special event pricing (Republic day)

  Differentiated pricing-Time pricing
 Bundling

PLACE

Place means the location of the business. Big Bazaar has always worked on low-cost locations. It
targets semi-urban population with its placement. Its strategy is to find a cheap location and it
never goes for hot spots in the city. It relied on promotional activities to make up for unattractive
locations. Another strategy used by Big Bazaar to overcome location disadvantage is use of
internet. It has launched a merchandise retailing website [Link] which targets
high-end customers ready to use credit cards. The promotion of this website is done through
advertisement on Google. The website is put as sponsored link. Startegies adopted for facility
allocation are

Initially identifies future/potential development areas

Acquires such areas at an early phase before the real estate value booms

Designed to look crowded

PROMOTION:

Big Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make
people do bulk shopping. There are 2 types of promotional strategies of big bazaar. One is the
holistic advertisement which promotes the brand and creates awareness among people. It is not
targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping
option. The store has advertised through TV, road shows and also started reality show-typed
promotional campaign “The Big Bazaar Challenge.” Promotions like “Sabse Sasta Din” are a
very successful strategy to get footfall. In these products across categories such as apparels,
furniture, electronics, utensils and food products at the lowest possible prices, coupled with
attractive promotional schemes. Some of the most attractive offers being a 20-litre branded
microwave oven with grill for Rs 2,499, jeans and trousers for Rs 199 and HCL laptops for Rs
22,990. Other type of promotion is the particular store oriented promotion which includes
speaking on the loudspeaker in nearby blocks. Leaflets are given in local newspaper. There are
promotional efforts even inside the store. Buy 2 Get 1 Free types of promotions are very
common. Original prices are cut down and new prices are shown, of which customer takes quick
notice. There are loyalty schemes which reward regular clients. Promotion is also done through
co-branded credit cards with ICICI bank.
2.8 CHALLENGES

 Largely urban phenomenon, pace of growth is still slow.

 Not being recognized as an industry in India so availability of finance is low to new
market players.
 High cost of real estate.
 High stamp duties.
 Lack of infrastructure.
 Multiple & complex taxation system.
 Protest against retail sector.
2.9 CONCLUSION
Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The
companies are fighting to win the hearts of customer who is God said by the business tycoons.
There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to
“BIG BAZAAR”. It has brought about many changes in the buying habits of people. It has
created formats, which provide all items less than one roof at low rates.

The consumer’s preferences are changing & they are moving from Traditional Kirana stores to
Modern Retail outlet. It’s the main challenge to the Modern retail outlets to attract the customers
towards them from that of competitors. To attract more customers companies have to carry out
the promotional activities in unique way. BIG BAZAAR has maintained that uniqueness & has
succeeded in attracting customers.

The promotional activity of the company, which famous as Less Price than others as it says
‘Nobody Sells Cheaper and Better!’ is made its place in minds of customer. As the competition
is becoming stiff in the market the activities conducted by the company are unique, that have
brought fruitful result to the company. Among them sales Promotions is one of the leading
activity or unique among all other activities & has high influence on the customer walk-in.
2.10 BIBLIOGRAPHY
[Link]

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