INTRODUCTION

India has often been called a nation of shopkeepers. Presumably the reason for this is; that, a large number of retail enterprises exist in India. In 2004, there were 12 million such units of which 98% are small family businesses, utilizing only household labour. Even among retail enterprises, which employ hired workers, a majority of them use less than three workers. Retailing is the combination of activities involved in selling or renting consumer goods and services directly to ultimate consumers for their personal or household use. In addition to selling, retailing includes such diverse activities as, buying, advertising, data processing and maintaining inventory. While sales people regularly call on institutional customers, to initiate and conclude transactions, most end users or final customers, patronize stores. This makes store location, product assortment, timings, store fixtures, sales personnel, delivery and other factors, very critical in drawing customers to the store. Final customers make many unplanned purchases. In contrast those who buy for resale or use in manufacturing are more systematic in their purchasing. Therefore, retailers need to place impulse items in high traffic locations, organize, store layout , trains sales people in suggestion , and place related items next to each other, to stimulate purchase.

WHAT DOES THE RETAILING INDUSTRY INCLUDE?

Department Stores Discount Stores Clothing Stores Specialty retailers Convenience Stores Grocery Stores Drug Stores Home furnishing retailers Auto Retailers Direct Sales Catalog and mail order companies Some e-commerce businesses

THE IMPORTANCE OF RETAILING

Organized retailing in India was estimated at Rs.18,000 crores in 20022003 and has grown at about 40% over the last 3 years (Source KSA Retail Outlook). Retailing has a tremendous impact on the economy. It involves high annual sales and employment. As a major source of employment retailing offers a wide range of career opportunities including; store management, merchandising and owning a retail business. Consumers benefit from retailing in that, retailers perform marketing functions that makes it possible for customers to have access to a broad variety of products and services. Retailing also helps to create place, time and possession utilities. A retailer's service also helps to enhance a product's image. In general, retailers perform four distinct function as, shown in Figure 1.1 below:

1) Retailers participate in the sorting process by collecting an assortment of goods and services from a wide variety of suppliers and offering them for sale. The width and depth of assortment depend upon the individual retailer's strategy. 2) They provide information to consumers through advertising, displays and signs and sales personnel. Marketing research support is given to other channels, members. 3) They store merchandise, mark prices on it, place items on the selling floor and otherwise handle products; usually they pay suppliers for items before selling
,,

them to final customers. They complete

transactions by using appropriate locations, and timings, credit policies, and other services e.g. delivery. 4) Retailing in a way, is the final stage in marketing channels for consumer products. Retailers provide the vital link between producers and ultimate consumers.

RETAIL STRATEGY AND STRUCTURE

Successful retail operations depend largely on two main dimensions: margin and turnover. How far a retail enterprise can reach in margin and turnover depends essentially on the type of business (product lines) and the style and scale of the operations. In addition the turnover also depends upon the professional competence of the enterprise. In a given business two retail companies may choose two different margin levels, and yet both may be successful, provided the strategy and style of management are appropriate. Margin Turnover Model Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for understanding the retail structure and evolving a retail strategy." Margin is defined as the percentage mark tip at which the inventory in the store is sold and turnover is the number of times the average inventory is sold in a year. The Figure below is a diagrammatic representation of the frame work and can be applied to almost any type of retail business. Depending upon the, combination of the two parameters, a retail business will fall into one of the four quadrants. For instance L-L signifies a position which is low on both margin and turnover; whereas, H-L indicates high margin and low turnover.

Low Margin High Turnover Stores Such an operation assumes that low price is the most significant determinant of customer patronage. The stores in this category price their products below the market level. Marketing communication focuses mainly on price. They provide very few services; if any, and they normally entail an extra charge whenever they do. The merchandise in these stores are generally pre-sold or self sold. This means that the customers buy the product, rather than the store selling them. These stores are typically located in isolated locations and usually stock a wide . range of fast moving goods in several merchandise lines. The inventory consists of well known brands for which a consumer pull is created by the manufacturer through national advertising. Local promotion focuses on low price. Wal-mart in the United States is an example and Pantaloon Chain or Subhiksha are Indian examples of such stores.

High Margin Low Turnover This operation is based on the premise that distinctive merchandise, service and sales approach are the most important factors for attracting customers. Stores in this category price their products higher than those in the market, but not necessarily higher than those in similar outlets. The focus in marketing communication is on product quality and uniqueness. Merchandise is primarily sold in store and not pre-sold. These stores provide a large number of services and sell select, categories of products. They do not stock national brands which are nationally advertised. Typically, a store in this category is located in a down town area or a major shopping center. Sales depends largely on salesmanship and image of the outlet. High Margin High Turnover Stores These stores generally stock a narrow line of products with turnover of reasonably high frequency. They could be situated in a non commercial area but not too far from a major thoroughfare. Their locational advantage allows them to charge a higher price. High over head costs and, low volumes also necessitate a higher price. Low Margin-Low Turnover Stores Retail enterprises in this category are pushed to maintain low margins because of price wars. Compounding this problem is the low volume of sales, which is probably a result of poor management, unsuitable location etc. such businesses, normally get wiped out over a period of time.

RETAILING FORMATS (CLASSIFYING RETAIL FIRMS)

Regardless of the particular type of retailer (such as a supermarket or a department store), retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store operations. Figure 1.3 illustrates this concept.

FORM OF OWNERSHIP

A retail business like any other type of business, can be owned by a sole proprietor, partners or a corporation. A majority of retail business in India are sole proprietorships and partnerships.

1) Independent Retailer Generally operates one outlet and offers personalized service, a convenient location and close customer contact. Roughly 98% of all the retail businesses in India, are managed and run by independents, including barber shops, drycleaners, furniture stores, bookshops, LPG Gas Agencies and neighbourhood stores. This is due to the fact that into retailing is easy and it requires low investment and little technical knowledge. This obviously results in a high degree of competition. Most independent retailers fail because of the ease of entry, poor management skills and inadequate resources. 2) Retail Chain It involves common ownership of multiple units. In such units, the purchasing and decision making are centralized. Chains often rely on, specialization, standardization and elaborate control- systems. Consequently chains are able to serve a large dispersed target market and maintain a well known company name. Chain stores have been successful, mainly because they have the opportunity to take advantage of "economies of scale" in buying and selling goods. They can maintain their prices, thus increasing their margins, or they can cut prices and attract greater sales volume. Unlike smaller, independent retailers with lesser financial means, they can also take advantage of such tools as computers and information technology. Examples of retail chains in India are Shoppers stop; West side and IOC, convenience stores at select petrol filling stations. 3) Retail Franchising Is a contractual arrangement between a "franchiser" (which may be a manufacturer, wholesaler, or a service sponsor) and a "franchisee" or

franchisees, which allows the latter to conduct a certain form of business under an established name and according to a specific set of rules. The franchise agreement gives the franchiser much discretion in controlling the operations of small retailers. In exchange for fees, royalties and a share of the profits, the franchiser offers assistance and very often supplies as well. Classic examples of franchising are; McDonalds, Pizza Hut and Nirulas. 4) Cooperatives A retail cooperative is a group of independent retailers,that have combined their financial resources and their expertise in order to effectively control their wholesaling needs. They share purchases, storage, shopping facilities, advertising planning and other functions. The individual retailers retain their independence, but agree on broad common policies. Amul is a typical example of a cooperative in India. STORE STRATEGY MIX Retailers can be classified by retail store strategy mix, which is an integrated combination of hours, location, assortment, service, advertising, and prices etc. The various categories are: 1) Convenience Store: Is generally a well situated, food oriented store with long operating house and a limited number of items. Consumers use a convenience store; for fill in items such as bread, milk, eggs, chocolates and candy etc. 2) Super markets: Is a diversified store which sells a broad range of food and non food items. A supermarket typically carries small house hold appliances, some apparel items, bakery, film developing, jams, pickles, books, audio/video CD's etc. The Govt. run Super bazaar, and Kendriya Bhandar in Delhi are good

examples of a super market. Similarly in Mumbai, we have Apna Bazar and Sahakari Bhandar.

3) Department Stores: A department store usually sells a general line of apparel for the family, household linens, home furnishings and appliances. Large format apparel department stores include Pantaloon, Ebony and Pyramid. Others in this category are: Shoppers Stop and Westside. 4) Speciality Store: Concentrates on the sale of a single line of products or services, such as Audio equipment, Jewellery, Beauty and Health Care, etc. Consumers are not confronted with racks of unrelated merchandise. Successful speciality stores in India include, Music World for audio needs, Tanishq for jewellery and McDonalds, Pizza Hut and Nirula's for food services. 5) Hyper Markets: Is a special kind of combination store which integrates an economy super market with a discount department store. A hyper market generally has an ambience which attracts the family as whole. Pantaloon Retail India Ltd. (PRIL) through its hypermarket "Big Bazar", offers products at prices which are 25% - 30% lower than the market price.

NON STORE RETAILING In non store retailing, customers do not go to a store to buy. This type of retailing is growing very fast. Among the reasons are; the ability to buy merchandise not available in local stores, the increasing number of women workers, and the presence of unskilled retail sales persons who can not provide information to help shoppers make buying decisions The major types of non store retailing are: 1) In Home Retailing: Where, a sales transaction takes place in a home setting - including door-door selling. It gives the sales person an opportunity to demonstrate products in a very personal manner. He/She has the prospect's attention and there are fewer distractions as compared to a store setting. Examples of in home retailing include, Eureka Forbes vaccum cleaners and water filters. 2) Telesales/Telephone Retailing: This involves contact between the prospect and the retailer over the phone, for the purpose of making a sale or purchase. A large number of mobile phone service providers use this method. Other examples are private insurance companies, and credit companies etc. 3) Catalog Retailing: This is a type of non store retailing in which the retailers offers the merchandise in a catalogue, which includes ordering instructions and customer orders by mail. The basic attraction for shoppers is convenience. The advantages to

the retailers include lover operating costs, lower rents, smaller sales staff and absence of shop lifting. This trend is catching up fast in India. Burlington's catalogue shopping was quite popular in recent times. Some multi level marketing companies like Oriflame also resort to catalogue retailing.

4) Direct Response Retailing: Here the marketers advertise these products/ services in magazines, newspapers, radio and/or television offering an address or telephone number so that consumers can write or call to place an order. It is also sometimes referred to as "Direct response advertising." The availability of credit cards and toll free numbers stimulate direct response by telephone. The goal is to induce the customer to make an immediate and direct response to the advertisement to "order now." Telebrands is a classic example of direct response retailing. Times shopping India is another example. 5) Automatic Vending: Although in a very nascent stage in India, is the ultimate in non personal, non store retailing. Products are sold directly to customers/buyers from machines. These machines dispense products which enable customers to buy after closing hours. ATM's dispensing cash at odd hours represent this form of non store retailing. Apart from all the multinational banks, a large number of Indian banks also provide ATM services, countrywide. 6) Automatic Vending: Although in a very nascent stage in India, is the ultimate in non personal, non store retailing. Products are sold directly to customers/buyers from machines. These machines dispense products which enable customers to buy after

closing hours. ATM's dispensing cash at odd hours represent this form of non store retailing. Apart from all the multinational banks, a large number of Indian banks also provide ATM services, countrywide. 7) Electronic Retailing/E-Tailing: Is a retail format in which retailers communicate with customers and offer products and services for sale, over the internet. The rapid diffusion of internet access and usage, and the perceived low cost of entry has stimulated the creation of thousands of entrepreneurial electronic retailing ventures during the last 10 years or so. Amazon.com, E-bay and Bazee.com HDFCSec.com are some of the many e-tailers operating today.

RETAILING DECISIONS
There are many factors for retailers to consider while developing and implementing their marketing plans. Among the major retailing decisions are these related to (a) Target markets (b) Merchandise management (c) Store location (d) Store image (e) Store personnel (f) Store design (g) Promotion, and (h) Credit and collections. This is shown diagrammatically in Figure

Target Markets: Although retailers normally aim at the mass market, a growing number are engaging in marketing research and market segmentation, because they are finding it increasingly difficult to satisfy everyone. Through a careful definition of target markets, retailers can use their resources and capabilities to position themselves more effectively and achieve differential advantage. The tremendous growth in number of speciality stores in recent years is largely due to their ability to define precisely the type of customers, they want to serve. Merchandise Management: The objective here is to identify the

merchandise that customers want, and make it available at the right price, in the right place at the right time. Merchandise Management includes (i) merchandise planning (ii) merchandise purchase, and (iii) merchandise control. Merchandise planning deals with decisions relating to the breadth and depth of the mix, needed to satisfy target customers to achieve the retailers return on investment. This involves sales forecasting, inventory requirements, decisions regarding gross margins and mark ups etc. Merchandise buying involves decisions relating to centralized or decentralized buying, merchandise resources and negotiation with suppliers. Merchandise Control: deals with maintaining the proper level of inventory and protecting it against shrinkage (theft, pilferage etc.). Store Location: Location is critical to the success of a retail store. A store's trading-area is the area surrounding the store from which the outlet draws a majority of its customers. The extent of this area depends upon the merchandise sold. For example some people might be willing to travel a longer distance to shop at a speciality store because of the unique and prestigious merchandise offered. Having decided on the trading area a specific site must then be selected. Factors affecting the site include, traffic

patterns, accessability, competitors' location, availability and cost and population shifts within the area. Store Image: A store image is the mental picture, or personality of the store, a retailer likes to project to customers. Image is affected by advertising, services; store layout, personnel, as well as the quality, depth and breadth of merchandise. Customers tend to shop in stores that fit their images of themselves. Store Personnel: Sales personnel at a retail store can help build customer loyalty and store image. A major complaint in many lanes of retailing, is the poor attitude of a salesperson. There is a growing trend now, to provide training to, these sales clerks to convert them from order takers to effective sales associates. Store Design: A store's exterior and interior design affect its image and profit potential. The exterior should be attractive and inviting and should blend with the store's general surroundings. The term "Atmospherics" is used to refer to the retailer's effort at creating the right ambience. Merchandise display is equally important. An effective layout guides the customer though the various sections in the store and facilitates purchase. Promotion: retail promotion includes all communication from retailers to consumers and between sales people and customers. The objective is to build the stores image, promote customer traffic, and sell specific products. It includes, both, personal and non personal promotion. Personal communication is personal selling - the face to face interaction between the buyer and the seller. Department stores and speciality stores, emphasize this form of promotion. Non personal promotion is advertising. The media used are TV, Radio, Newspapers, Outdoor displays and direct mail, other forms of promotion include, displays, special sales, give always and contests etc.

Credits & Collections: Retailers are generally wary of providing credit, because of additional costs-financing accounts receivables, processing forms and bad debts etc. But many customers prefer some form of credit while purchasing. This explains the popularity of different types of credit cards and debit cards.

EMERGING TRENDS IN RETAILING

In recent years the nature of retailing has changed dramatically, as firms try to protect their positions in the market place. Many customers are no longer willing to spend as much time on shopping as they once did. Some sectors of retailing have become saturated, several retailers are operating under high levels of debt and number of retailers after running frequent "sales", have found it difficult to maintain regular prices. Retailers are adapting to the shopping needs and time constraints of working women, dual earner households and the increased customer interest in quality and customer service: Shopping Malls: A growing number of shopping malls are coming up all over the country. In north India; there seems to be a proliferation of such malls surrounding Delhi, in places like Gurgaon and Noida. In general they target higher income customers, with their prestigious speciality shops, restaurants and department stores. Factory Outlets: Manufacturers are opening factory outlets to sell off surplus inventories and outdated merchandise. This forward vertical integration gives manufacturers greater control' over distribution, than selling the merchandise to off price retailers. Mohini knitwear of Ludhiana (Punjab)

and number of woolen and hosiery manufacturers set up their outlets in Delhi during winters. Non Store Retailing: Non store retailing is accelerating at a faster rate than in store retailing. This includes direct marketing. In Home shopping TV shopping and e-tailing etc. Diversification of Offerings: Scrambled (unrelated products or services) merchandising is taking on a broader meaning and inter type competition among retailers is growing. For instance Citibank is organizing tourist trips and sending mail order catalogues to its credit card customers. Impact of Technology on Shopping Behaviour: The way retailers present their merchandise and conduct their transactions are changing. Cable TV Channels are used to present merchandise, Videos have replaced catalogues and computer linkages to acquire information and make purchases are on the increase. Virtual shopping through PDA's is another possibility. Multi Channel Retailing: Traditional store based and catalogue retailers are placing more emphasis on their electronic channels and evolving into multi channel retailers, because they can reach new markets and overcome limitations posed by traditional formats.

CASE STUDY 1: BIG BAZAAR (FUTURE GROUP)

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 marker. Headquartered in Mumbai (Bombay), the company operates over 7 million square feet of retail space, has over 1000 stores across 51 cities in India and employs over 24,000 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, Fashion Station, all, Top 10, bazaar 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 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 7 million square feet of retail space, has over 1000 stores across 51 cities in India and employs over 24,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar... Big Bazaar is planning to position itself as a value retailer after being hived off as an independent company within the Future Group. While a new company has been floated under the name of Future Hypermarket, the retailer is now considering a new name to represent its discount format. Speaking to Business Line, Mr. Rajan Malhotra, Chief Executive Officer, Big Bazaar, said, Although we have registered a new company under the name of Future Hypermarket, we intend changing its name. 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 Groups 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. There would be back-end efficiency in our operations. With amalgamation of formats under various heads ranging from Food Bazaar to Furniture Bazaar, Big Bazaar is looking at distinguishing itself as a value retailer in its segment rather than being clubbed with the rest of the existing hypermarkets in the country. Besides, it is looking forward to re-launching its private label, DJ & C, as a national brand by giving the brand rights to Future Brands (the group

vertical handling brands in the group). Targeting the youth segment, DJ&C is today worth Rs 200 crore in Bazaars kitty. We intend re-launching it as a national brand through other retail outlets by the end of this month. We believe Big Bazaar has moved into a mature phase and that is a compelling reason to launch our youth brand at a national level. The DJ&C brand has crossed a turnover of Rs 200 crore and now has enough pull to take it to its next level, states Mr. Malhotra. Having forged long-term relationships with a host of FMCG players through MoUs, Big Bazaar is open to new categories being tested through its formats. We are open to the highest selling brands such as Pears and Dove opening the new age categories at our stores, says Mr. Malhotra. Meanwhile, Big Bazaar has roped in cricketer and India ODI captain Mahendra Singh Dhoni as the brand ambassador for its extensive collection of fashion apparel male whereas Asin as the brand ambassador for fashion apparel.

AN

ANALYTICAL OF

STUDY RETAIL

OF

THE IN

DEVELOPMENT

MARKETING

INDIA: A CASE OF BIG BAZAAR

THE PROCESS OF STRATEGIC MANAGEMENT
A process in management is defined as a perceptible flow of information through interrelated stages of analysis directed towards the achievement of an aim. There are four basic elements in the process of strategic management;

Environmental scanning Strategy formulation Strategy implementation Evaluation & control

Environmental scanning:
It involves monitoring the environment, & evaluating & disseminating information obtained from the internal & external environments. The aim of this is to identify the strategic factors that may determine the future of the firm. An organization derive several benefits from environmental scanning including the development of a common perception, identification of

strengths & weaknesses, an understanding of trends & conditions, & optimum utilization of internal & external information. SWOT analysis is the most commonly used technique for environmental scanning. SWOT is an acronym for the strengths, weaknesses, opportunities & threats faced by a firm. Strengths & weaknesses are within the control of the top management in the long run. Opportunities & threats are external factors that are outside the control of the organization. The key strengths of the firm become the core competencies that the organization can use to gain competitive advantage.

ENVIRONMENTAL SCANNING FOR BIG BAZAAR

INTERNAL SCANNING
The SWOT analysis of Big Bazaar is as follows: Strengths: The strengths of Big Bazaar are it is leading and growing at the faster pace. It has many outlets all over India. It has a good customer base. They launched Big-Bazaar a hypermarket with over 1, 70,000 products as the first offering in value retailing segment. Products are cheaper than the market price by as much as 5 to 60%. Apparels are cheaper by 25 to 60% while the price difference on the other products varies between 5 to 20%. The Big-Bazaar has been positioned to the customer as a place where the customer can shop for each & everything for which if goes to a market. Weakness: Big Bazaar has not yet trapped the whole market. Facing problems due to political environment Opportunities

Huge untapped market Threats Competition from organized retail players which are in market and emerging like Reliance, shoppers stop, Wal-Mart Competition from local retailers.

EXTERNAL ENVIRONMENTAL 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 situated. For gaining the opinions from the local people they will prepare the questionnaire and get it filled from the people. Then they will form a focus group for getting more and more of information. They can also adopt open forum strategy for environmental scanning. For that purpose we have prepared a questionnaire and collected the data.

Analysis of political and legal factors:

In India there is a political triangle this consist of the municipal corporation which belongs to Indira congress, the other is MLA which belongs to Shivsena and BJP and MP which belongs to the national congress. The congress political people are having contacts with common people and not much concerned with merchants but contradictory to this that the BJP and Shivsena they are having more concern about merchants of the city. As

Municipal Corporation is in the hands of congress party and they are ready to have big bazaar in India that is the reason they are ready to provide some kind of perks to big bazaar they are as follows: Subsidy from octroi, different taxes like land tax and water tax Help in taking over properties and real estate Some concessions from labor laws Now a days in India also proportion of working womens is increasing and the literacy rate has also increased this will lead into increase in standard of living of people. As people are aware about western culture through various Medias they are very much eager to follow the western culture. People from talukas are coming to India as it is a district place for shopping, taking education, for working etc. this also creates demand. There is a majority of middleclass people in India and it is a most populated district consisting 13 talukas. The major communities in India city are Hindus, Muslims, Christians, Jain, Sindhi and Punjabi.

Socio-cultural factors:

Economic environment:
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:
It refers to the development of long term plans for managing opportunities & threats in the external environment, & for utilizing the

strengths & overcoming the weaknesses within the firm. A strategist takes into consideration components of strategic management like company mission, company profile, external environment strategic analysis & choice, long term objectives, grand strategy while formulating the strategy. Strategy formulation helps an organization to; Capitalize on available opportunities. Address the challenges faced by the organization. Provide leadership that understands & masters change. Incorporate an in-depth planning model that involves the community.

STRATEGIC FORMULATION FOR BIG BAZAAR:

Big Bazaar will form some strategies for the long-term goals. First of all it will find out what are the opportunities present in the market so that they can grab it so as to expand their business, trap a particular segment of people, and establish a good client base and to generate good revenues. They will also keep in mind the threats that they have from their competitors and also form the small grocery shops. They will find out some strategies to overcome the threat and to sustain in the market for a longer period of time. They will also try to utilize their strengths and overcome the weaknesses.

Management of big bazaar

Mr. Kishore Biyani, Managing Director Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited

and the Group Chief Executive Officer of Future Group. To know more, click here. Mr. Gopikishan Biyani, Wholetime Director Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the textile business. Mr. Rakesh Biyani, Wholetime Director Rakesh Biyani, is a commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats. Mr. Ved Prakash Arya, Director Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute of Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus. Mr. Shailesh Haribhakti, Independent Director Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.

BIG BAZAAR

FOR THE GREAT INDIAN MIDDLE CLASS

It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It was started as a hypermarket format in Mumbai with approx. 50,000 sqft of space. Its values and missions are to be the best in Value Retailing by providing the cheapest prices and hence go the tag-line

IS SE SASTA AUR ACHCHA KAHIN NAHIN

It sells variety of merchandise at affordable rates, the prices of which it claims are lowest in the city but the level of services offered is also very low. The following graph shows the retail life cycle and we can say that Big Bazaar is currently at the Growth Stage. Cash flow Flows

Maturity

Growth

Decline

Introduction

Time

OBSERVATION:
There were various observations made from the time I entered the store. They can be summed up as follows:

 o o o floor.

Verticals inside the store relates to each category of product Food Bazaar M-bazaar Furniture Bazaar Depot- books Electronic Bazaar Footwear Bazaar

Trolleys are not easily available, especially on other than ground

Little attention to cleanliness. Dust on shelves as well as some

product items. In-house packaging not efficiently done. Crowded store interiors. Items are arranged in a cluttered way.

Tried to stock maximum number in limited area. Sign boards are not prominent. Lack of direction creates

confusion. Family crowd is evident. Youth comprises of only around 10% of

the crowd. Food Bazaar very efficiently managed. It is a bit over-staffed but

layout is very good. Shelf space is used very well to stock products with clear distinction.

POSITIONING

STRATEGY

COMPANY VISION, MISSION AND CORE VALUES

Future the word that signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

They, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socioeconomic development for our customers, employees, shareholders, associates and partners. 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. They shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

Core Values
Indian ness: confidence in ourselves. Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long-term relationships. Simplicity & Positivity: Simplicity and Positivity in our thought, business Action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.

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. Following are some additional strategies they require to adopt: Thorough market research Site selection and evaluation Employee search and training Less premium and low price branded goods in merchandise assortment. Gaming zone and restaurant Promotional activities like advertisement, seasonal discounts, festival offers, etc. While formulating strategies we should keep in mind that strategies should be flexible. This is helpful to change or revival of strategy.

CASE STUDY 2: GLOBUS

The Company: Strong, Competitive, Innovative, Adaptive History: Launched in January 1998, Globus is a part of the Rajan Raheja group. The company opened its first store in 1999 at Indore followed by the launch of its second store in Chennai (T-Nagar). Soon to follow was another in Chennai located in Adyar. The flagship store in Mumbai was opened on 1st November 2001 followed by a swanky new outlet in New Delhi in South Extension Part-2.

The sixth & seventh stores are in Bangalore in Koramangala & Richmond Road respectively. The Eighth store in Ghaziabad at Shipra Mall followed by the ninth, tenth and eleventh in Kalaghoda, Mumbai, Thane and Ghaziabad, twelfth store at Kanpur and thirteenth store in Ahmedabad & fourteenth store in Lucknow.As of September 2007, Globus has opened its 21th Store in Thane -Dahisar and the journey continues.. Mission:

Achieve customer delight by offering quality products and services through a process of continuous innovation and adaptation. Build a dynamic team of committed and passionate employees through sustained learning and grooming. Develop mutually beneficial relationships with our business partners. Employ cost-effective processes and thereby create a strong organization.

Globus Stores Pvt. Ltd. was formed to contribute in the revolution sweeping the retail industry. Globus promises to bring about a perceptible change in the way apparel and lifestyle retailing has been carried so far. Towards this end, modern international technology has been brought in and heavy investments have been made in investing and acquiring the best, tried and tested processes and procedures of operation.

Research & Design Production & Merchandising Marketing & Brand Development Service Human resources Administering policies & procedures

Infrastructure: Future: Globus combines state of art international information technology, the highest quality human resources and sustained financial commitment to realize the long term vision. We are rapidly expanding and the target is to have an additional 100 fashion stores by the end of 2012.

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