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Retail Sector in India A Case of Big Bazaar
Retail Sector in India A Case of Big Bazaar
-: SUBMITTED BY:-
Mr. Avinash Chandrakant Silimkar
INC VASHI
7NBMN002
IN THE PARTIAL FULFILLMENT OF THE
-: SUBMITTED TO:-
ICFAI NATIONAL COLLEGE, VASHI
2007-09
I hereby declare that the Initial Report entitled “An Analytical Study
of the Development of Retail Marketing in India : A Case of Big
Bazaar” submitted for Management Thesis-II , under the supervision &
guidance of Dr. Meena Vazirani, in partial fulfillment of MBA, ICFAI National
College, Vashi.
Date: 18/12/2008
Page
SR.NO PARTICULARS
no
1 ACKNOWLDGEMENT 5
3 ABBREVIATIONS 7
4 INTRODUCTION 8
5 OBJECTIVE 12
6 RESEARCH METHODOLOGY 14
Pie chart 08
1
2 Tables 23 & 24
3 Picture 19 & 21
ABBREVIATIONS
Retailing in India is gradually inching its way toward becoming the next
boom industry. The whole concept of shopping has altered in terms of format
and consumer buying behavior, ushering in a revolution in shopping in India.
Modern retail has entered India as seen in sprawling
shopping centers, multi-storied malls and huge
complexes offer shopping, entertainment and food all
under one roof. The Indian retailing sector is at an
inflexion point where the growth of organized retailing
and growth in the consumption by the Indian population
is going to take a higher growth trajectory. The Indian
population is witnessing a significant change in its demographics.
Retail and real estate are the two booming sectors of India in the
present times. And if industry experts are to be believed, the prospects of
both the sectors are mutually dependent on each other. Retail, one of India’s
largest industries, has presently emerged as one of the most dynamic and fast
paced industries of our times with several players entering the market.
Accounting for over 10 per cent of the country’s GDP and around eight per
cent of the employment retailing in India is gradually inching its way toward
becoming the next boom industry.
Another credible factor in the prospects of the retail sector in India is the
increase in the young working population. In India, hefty pay packets,
nuclear families in urban areas, along with increasing working-women
population and emerging opportunities in the services sector. These key
factors have been the growth drivers of the organized retail sector in India
OBJECTIVE
8. To find the factors which are behind the change of Indian Retailing
Industry?
18. Last but not the least to know about retail business
Research Methodology
A] Data sources
B] Research instruments
C] Sampling methods
A] Data Sources
1) Primary data:-
2) Secondary data:-
i) Newspapers
ii) Magazines
B] Research Instruments
C] Sampling Plan
I) Sampling Unit:-
The sampling quantity was 24 & all are related with Big Bazaar.
Apart from this we also considered some customers of Big Bazaar.
iii) Coverage:-
The retail market in India is estimated at about US$ 410 billion and
constitutes about 60% of private consumption and about 35% of India's GDP.
With Indian GDP expected to grow at 7-8 % in the next coming years, the
retail market is expected to touch US $860 billion by 2018. In recent years,
this sector has witnessed a lot of interest from both domestic and global
players, who have committed investments worth US $30 billion, which will
lead to increase in the share of modern retail from the current 4.5% to
almost 25% of the total retail market by 2018.
India’s retail market is at its pinnacle and is drawing huge attention from
both global and local retailers.
Reasons for India’s high growth rate in the retail sector are:
• High growth rates- India’s GDP is projected to grow by more than 8 percent
in fiscal year 2008; projections for 2009 are a more modest at about 7
percent
• Untapped growth potential- Organized retail, which still accounts for less
than 5 percent of the market is expected to grow at a compound annual
growth rate (CAGR) of 40 percent to $107 billion by 2013. India’s overall
Benefits of Retailing
Retailers play a major role in the transfer of goods and services from
the manufactures to the end users. In this process retailer delivers many
benefits to customers, manufactures, wholesalers, and the economy.
Benefits to customers
The retailing business is the largest privet industry in the world with
turnover of US $6.6 trillion. Retailing plays a crucial role in the management
of world economy and retailers constitute a tenth of the fortune 500
companies. In INDIA retailing accounts for over 10% GDP and around 8% of
the employment only next to the agriculture industry.
• Environmental scanning
• Strategy formulation
• Strategy implementation
• Evaluation & control
Environmental scanning:
INTERNAL SCANNING
Before Big Bazaar coming to India their strategy was to scan the
environment & find the location where the Mall should be situated. It will also
use various tools such as surveys for getting the preferences of big bazaar.
We got the opinion that Big Bazaar sustain in the market or not, where it is
• Subsidy from octroi, different taxes like land tax and water tax
• Help in taking over properties and real estate
• Some concessions from labor laws
Socio-cultural factors:
As this district is having 13 talukas and most of them are having good
agricultural base which ultimately leads to higher seasonal income. Another
one is that most of the people who are residing in India they are engaged in
various jobs and businesses they is the part of regular income group. So this
will lead to higher purchasing power and a huge potential market. One more
advantage to big bazaar coming to India is availability of cheap labor.
From the external analysis we came to know that the people residing
the India city are in the favor of Big Bazaar coming to India. The location
preferred by them is Savedi as it is highly developed and accessible area to
all the people.
Strategy formulation:
COMPANY PROFILE
Big Bazaar comes under the Pantaloon Retail India Limited (PRIL). PRIL
was early to realize the
potential of the huge
middle-class population in India.
We started the operations with
a trouser brand, Pantaloon. In
the initial stages we had small
format outlets branded
A big driver of the Big Bazaar is the product variety. This is achieved
by selling wide range of products & through the “Shop-in-Shop” format. As a
result, a typical Big-Bazaar comprises shops that stocks medicines, optical
accessories, camera rolls, bakery products, dry fruits, crockery, glassware,
health & beauty products, ladies accessories, electronics infant necessities,
The following graph shows the retail life cycle and we can say that Big Bazaar
is currently at the Growth Stage.
Maturity
Growt
h Decline
Introductio
n
Time
OBSERVATION:
There were various observations made from the time I entered the store. They
can be summed up as follows:
POSITIONING STRATEGY
Their customers will not just get what they need, but also get them
where, how and when they need. They will not just post satisfactory results,
They will write success stories. They will not just operate efficiently in the
Indian economy, we will evolve it.
They will not just spot trends; They will set trends by marrying our
understanding of the Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will
help us succeed in the Future. They shall keep relearning. And in this
process, do just one thing. Rewrite Rules. Retain Values.
Group Vision
Future Group shall deliver Everything, Everywhere, Every time for Every
Indian Consumer in the most profitable manner.
Group Mission
They share the vision and belief that our customers and stakeholders
shall be served only by creating and executing future scenarios in the
consumption space leading to economic development.
They will be the trendsetters in evolving delivery formats, creating
retail realty, making consumption affordable for all customer segments
– for classes and for masses.
They shall infuse Indian brands with confidence and renewed ambition.
They shall be efficient, cost- conscious and committed to quality in
whatever we do.
Core Values
Various Strategies
After big bazaar coming to India it will be at its introduction stage so it
is quite obvious that it will adopt some strategy for attracting the customers.
The strategy which they would adopt is that they will have low price, high
advertisements, it would offer different kind of schemes, offers, discounts,
scratch cards, coupons. They would also give stress on providing the prompt
services like home delivery, after sales services, guarantees and warrantees,
so as to sustain in the market and to create a good reputation.
Summery
This paper provides detailed information about the growth of retailing
industry in India. It examines the growing awareness and brand
consciousness among people across different socio-economic classes in India
and how the urban and semi-urban retail markets are witnessing significant
growth. It explores the role of the Government of India in the industry’s
growth and the need for further reforms. In India the vast middle class and
its almost untapped retail industry are the key attractive forces for global
retail giants wanting to enter into newer markets, which in turn will help the
India Retail Industry to grow faster. The paper includes growth of retail
sector in India, strategies, strength and opportunities of retail stores, retail
In India the vast middle class and its almost untapped retail industry are the
key attractive forces for global retail giants wanting to enter into newer markets,
which in turn will help the India Retail Industry to grow faster. Indian retail is
expected to grow 25 per cent annually. Modern retail in India could be worth US$
175-200 billion by 2016. The Food Retail Industry in India dominates the
shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7
billion business, growing at over 20 per cent per year. The future of the India
Retail Industry looks promising with the growing of the market, with the
government policies becoming more favorable and the emerging technologies
facilitating operations.
The retail sector has played a phenomenal role throughout the world
in increasing productivity of consumer goods and services. It is also the
second largest industry in US in terms of numbers of employees and
establishments. There is no denying the fact that most of the developed
economies are very much relying on their retail sector as a locomotive of
growth. The India Retail Industry is the largest among all the industries,
accounting for over 10 per cent of the country’s GDP and around 8 per
cent of the employment. The Retail Industry in India has come forth as
one of the most dynamic and fast paced industries with several players
entering the market. But all of them have not yet tasted success because
of the heavy initial investments that are required to break even with other
companies and compete with them. The India Retail Industry is gradually
inching its way towards becoming the next boom industry.
REFERENCE
http://www.rediff.com/money/2007/jan/30spec.htm