CHAPTER-1 y INTRODUCTION y About The Future Group y Future Group, led by its founder and Group CEO, Mr.

Kishore Biyani, is one of India's leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. y Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year - 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. y Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group's core value of 'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.

y About Future Bazaar y Future Bazaar is the e-commerce arm of the Future Group. Future Bazaar provides an integrated shopping site where consumers are able to buy products from our flagship stores including eZone, Pantaloons and Big Bazaar online and get home delivery of products. y Future Bazaar delivers across more than 1500 cities and towns in India covering 16,000 pin codes. Future Bazaar carries genuine products and offers manufacturer's warranty (as opposed to Seller's warranty) which most other sites offer. Future Bazaar offers products where the complete supply chain is managed by Future Group entities unlike other sites that are marketplaces. y By the virtue of being a part of Future Group, Future Bazaar is able to offer a wide range of genuine products at very competitive prices, confidence of buying from a trusted source and the convenience of returning in our physical stores.

y About Big Bazaar y 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 the Indian customers.

y At Big Bazaar, you will definitely get the best products at the best prices that's what we guarantee. With the ever increasing array of private labels, it has opened the doors into 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. Big Bazaar plans to add much more to complete your shopping experience.

y About Pantaloons y Pantaloons is among India's largest chains of fashion stores. Pantaloons Fresh Fashion, with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that are in sync with the hopes and aspirations of discerning young and 'young-at-heart' consumers.

y Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is followed internationally. This 'fresh fashion' destination allows customers to shop for the latest in fashion apparel and accessories throughout the year in an attractive and visually stimulating ambience.

y Pantaloons Fresh Fashion stores have presence with stores not just in Metros but also in smaller towns. All stores have a wide variety of categories like casual wear, ethnic wear, formalwear, party wear and sportswear for Men, Women and Kids.

y About eZone y eZone, with the catch phrase 'experience electronics' is an experience led lifestyle format that brings together the best in national and international consumer electronic and durables brands in a family-centric environment. y Typically in excess of 12,000 square feet in size, an eZone store truly enables you to experience electronics, through three dedicated zones Liberation Zone, Experience Zone and Home Zone. The Liberation Zone offers personal products like computers, laptops, handy cams, MP3 players and mobile phones. While entertainment products such as Plasma / LCD, Flat TV's, Home Theatre systems, DVD players, and Stereo systems are displayed in the Experience Zone. And in the Home Zone segment, one gets to pick electronic goods of his or her choice including Refrigerators, Air Conditioners, washing machines and Microwave ovens among other kitchen related appliances. y eZone is not only about showcasing electronics products and gadgets, but providing you with a complete shopping experience through touch & feel, allowing you to pick and choose from an array of best of brands under one roof. eZones are primarily stand alone concepts, but are also present within the Central malls.

Overview Big bazaar is a chain of shopping malls in India. Currently, there are 148 big bazaar stores across 80 cities and towns in India. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.

Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread across around 50,000 square feet of retail space. While the larger metropolises have Big Bazaar Family centres measuring between 75,000 square feet and 1,60,000 square feet, Big Bazaar Express stores in smaller towns measure around 30,000 square feet.

Most of the Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and food products.

Big Bazaar is part of Future Group and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited that is listed on Indian stock exchanges.

Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day.

Future Group understands the soul of Indian consumers. As one of Indias retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow.

Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth.

We believe in the Indian dream and have aligned our business practices to our larger objective of being a premier catalyst in Indias consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes

in communities to help the Indian dream fly high and the Sone Ki Chidiya soar once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India.

Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique milestone in the History of World Retail by being the first hypermarket format in the globe to rollout fastest 101 stores in a short span of seven years.

Currently, Big Bazaar has 98 stores in the country, including the recently opened store in Mysore on September 26th 2008. Further to this, Big Bazaar will be opening three more stores in a single day i.e. 30th September 2008, which will take the eventual count to 101 stores in the country. These three stores opening shortly in Pune (Kalyani Nagar), Cuttack (Darga Bazaar) and Delhi (Rajouri Garden).

Big Bazaars journey began in October 2001, when the young, first generation entrepreneur Kishore Biyani opened the countrys first hypermarket retail outlet in Kolkata (then Calcutta). In the same month, two more stores were added one each in Hyderabad and Mumbai, thus starting on a successful sojourn which began the chapter of organized retailing in India.

Speaking on this momentous occasion and remembering the days of conceptualizing the hypermarket idea Mr. Kishore Biyani said, We initially decided to name the format as Bazaar because we had designed the store keeping the Indian mandi style in mind. Since the size of the hypermarket was big than an average mandis, the thought came to name it as Big Bazaar. However, we had freezed on the punch line Isse Se Sasta Aur Achha Kahi Nahi much before we met the creative agency to design the final logo of Big Bazaar.

Though, Big Bazaar was started purely as a fashion format including apparel, cosmetics, accessory and general merchandise, the first Food Bazaar format was added as Shop-In-Shop within Big Bazaar in the year 2002. Today, Big Bazaar, with its wide range of products and service offering, reflects the aspirations of millions of Indians. The journey of Big Bazaar can be divided into two phases one pre and the other post January 26th, 2005, when the company rewrote the retail chapter in India, with the introduction of a never-before sales campaign Sasbe Sasta Din. In just one day, almost the whole of India descended at various Big Bazaar stores in the country to shop at their favourite shopping destination.

Further, what followed was the time and again rewriting of the Indian Retail experience, wherein understanding of the Indian consumers reflected in the products and services offered, creating innovative deals, expanding in the tier II and tier III towns, tying up with branded merchandise to offer exclusive products and services to its customers.

Big Bazaar is present today in 59 cities and occupying over 5 million sq.ft. retail space and driving over 110 million footfalls into its stores. The format is expecting the number of footfall in the stores to increase by over 140 million by this financial year. Over the years, Mr. Biyani for his vision and leadership, and Big Bazaar for its unique proposition to its customers, have received every prestigious consumer awards both nationally and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, What is important in our journey is not the number of stores, but the customers faith in us. Its the India and the Indians, which have helped us, reach this feat in such a short time span and today our country is creating a history in the World organized Retail.

Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2001 adds, Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India and the Indianess. We believed in growing with the society, participating and celebrating all regional and local community festivals, giving customers preferences above everything else.

Every Big Bazaar is a small family by its own and the head of the family Karta is the store manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of the consumers insight, has inculcated the habit of observing, understanding customers behaviour, in every employee of the group.

Future Group is confident of the Indian Retail Story. The Group has not slowed down its expansion plans despite the fiscal woes in the economy present today. Future Group plans to have 300 stores and is expecting revenues of Rs 13,000 crore by year 2011.

History Big Bazaar was launched in September, 2001 with the opening of its first four stores in Kolkata, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 148 Big Bazaar stores in 80 cities and towns across India. Timeline 2001
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Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.

2002
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Big Bazaar - ICICI Bank Card is launched. Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai at High Street Phoenix.

2003
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Big Bazaar enters Tier II cities with the launch of the store in Nagpur. Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon.

2004
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Big Bazaar wins its first award and national recognition. Big Bazaar and Food Bazaar awarded the countrys most admired retailer award in value retailing and food retailing segment at the India Retail Forum

A day before Diwali, the store at Lower Parel becomes the first to touch Rs 10 million turnover on a single day

2005
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Initiates the implementation of SAP and pilots a RFID project at its central warehouse in Tarapur

Launches a unique shopping program: the Big Bazaar Exchange Offer, inviting customers to exchange household junk at Big Bazaar Electronic Bazaar and Furniture Bazaar are launched

2006
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Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367 shopping bill. The Sangli farmer becomes Big Bazaars largest ever customer.

Big Bazaar launches Shakti, Indias first credit card program tailored for housewives

Navaras the jewellery store launched within Big Bazaar stores

2007
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The 50th Big Bazaar store is launched in Kanpur Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping portal

Big Bazaar initiates the Power of One campaign to help raise funds for the Save The Children India Fund

Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.

2008
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Big Bazaar becomes the fastest growing hypermarket format in the world with the launch of its 101st store within 7 years of launch

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Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar Big Bazaar joins the league of Indias Business Superbrands. It is voted among the top ten service brands in the country in the latest Pitch-IMRB international survey.

2009
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Big Bazaar opens its second store in Assam at Tinsukia Big Bazaar initiates Maha Annasantarpane program at its stores in South India a unique initiative to offer meals to visitors and support local social organisations.

Big Bazaar captures almost one-third share in food and grocery products sold through modern retail in India

2010
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Future Value Retail Limited is formed as a specialized subsidiary to spearhead the groups value retail business through Big Bazaar, Food Bazaar and other formats.

Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the most preferred Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop.
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Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with around 200 million customers visiting its stores.

y About Subject:

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 promotional activities of Big Bazaar and its effect in catchment area helps us to understand the effect of promotional activities 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 90 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. y Definition of organized retail The retail sector is presently undergoing a transition in India. Previously, customers used to go to kirana stores to purchases their necessities. This later changed to bigger shops run by one man with a few employees. Here, all the work was done manually. Gradually, more sophistication seeped into this sector and department stores came into being. Beginning in the mid-1990s, however, there was an explosion of shopping malls and plazas where customers interacted with professionals and not with just one single person - the owner. An important point here is that customers' requirements are catered to by trained staff. Today, organized retailing has become an experience characterized by comfort, style and speed. It is something that offers a customer more control, convenience and choice along with an experience.

y Definition of unorganized retail

Unorganized retailing is defined as an outlet run locally by the owner or caretaker of a shop that lacks technical and accounting standardization. The supply chain and sourcing are also done locally to meet local needs. Its organized counterpart may not obtain its supplies from local sources.

y Definition of a retail strategy enables areas within the organizations The definition of a retail strategy enables other areas within the organizations to determine their strategies. Primary among these are: 1) Store Location 2) Merchandising 3) Pricing 4) Marketing

The primary areas that is influenced by the business strategy to be adopted by the retailer, is the decision on store location,. For years, experts have argued that the three most important aspects of any retail business were Location, Depending on the business model that is to be adopted by a retailer, the store location to be chosen. A strategy for tapping the up market consumer requires that the store be located in a place where such a consumer will shop. Similarly for building a model based in discounting may not really require prime locations in which case a lager place may be what is needed. The second factor that is influenced by the strategy is the type of merchandise to be stocked. If the retailer chooses to dominate the market place based on product selection he needs to ensure that he has the largest and widest selection of a product category imaginable or merchandise that is so unique, people will seek out the store. The merchandising strategy has to draw from the overall business strategy to understand and determine the types of products that will be needed in the store and the kind of prices that will have to be determined. The merchandising strategy has to match the selling strategy. Very often, the merchandising strategy is based more on long term vendor relationships or competitive distribution issues

than on well thought out business strategy that is written down and communicated throughout the organization. Merchandize strategies should be based on consumer research. Selling strategies should also be based on research, but not merchandise based research that indicates to the retailer what consumers want consumers to buy, but relationship based research which indicates to the retailer how they want to be treated when they buy. Related to the concept of merchandising is the concept of pricing which again is influenced by the business model that the retailer has chosen to adopt. Very often, being the price leader is till a valid strategy. However, it is not necessary to be low price leader. The other and of the pricing spectrum also presents an opportunity. Lastly, the complete marketing strategy adopted by the retailer is a reflection of the overall strategy of the overall business strategy. It is a combination of the advertising, promotions communication, sales staff, the level of customer service and the complete shopping experience offered to the end consumer. The process of strategy formulation in retail is the same as that for any other industry. It starts with retailer defining or stating the mission for the organization. The mission is at the core of the existence of the retailer. The other aspects of the strategy may change over a period of time or may vary for different markets. After defining the mission of the organization, an analysis of the internal strengths and weakness and external threats and opportunities is undertaken to help management decide on the best way to carry out the organizations mission. The options that can be pursued are then examined and the objectives set. Next, the management identifies the major strategic alternatives it could pursue. Markets in which the retail organization chooses to complete are then determined. Once this is determined the objectives to be achieved and resources are obtained

and allocated to help achieve the objectives. The strategy must then be implemented. Finally results must be measured and evaluated to ensure that the strategy is working and any changes necessary must be affected.

y Difference between organize & unorganized retail

The major differnce between orgnised and unorgnaised retailing lies in its number (chain) of store operations. An unorgnised outlet may be just stand alone or can have maximum of 2-3 outlets in a city. where as the orgnised outlets are "any retail chain (more than two outlets)which is professionally managed (even if its family run), has a accounting transparency (with proper usage of MIS and accounting standards) and organised SCM with centralised quality control and sourcing (certain parts can be locally made) can be termed as an "oranised retailing" in India.