PROJECT REPORT ON

RETAIL INDUSTRY COMPANY - BIG BAZAAR

SUBMITTED TO:

SUBMITTED BY:

EXECUTIVE SUMMARYAdvertising and Sales promotion is indispensable part of any Retail business. They help to entice the customers from local retailer of unorganized system to the big retail companies of organized system .In organized retail system sales promotion and advertising is even far more important because they need a big force to drag them into these giant retail stores. Big Bazaar has been using these promotional techniques since its establishment that helps it in maintaining as well as increasing its sales. It mainly counts on it sales promotion techniques and advertising that have always been unique. In the project Retail Industry with special reference to the company Big Bazaar We have tried to study all the big advertising and sales promotion campaigns of Big Bazaar. Apart from the study part I have tried to find whether Advertising and Sales promotion of Big Bazaar really influences the sales of Big Bazaar, taking it as hypothesis of my study I started up with my research. We began our research with the help of primary source of collecting the data that is

Questionnaire containing questions that could be used to measure the effect of advertising and Sales promotion on sales of Big Bazaar .We conducted the survey basically in primary and secondary area of research i.e Gurgaon and Dwarka. The sample size taken by me was 100. We visited Big Bazaar of Gurgaon to study their set up and the sales promotion techniques they are using, we contacted their authorities present in the hyper market to fill my questionnaire to impart me with knowledge about Big Bazaar. On the basis of analysis of questionnaires and various results based on pie chart and bar graphs , We came on the conclusion that only sales promotion has significant effect on the sales of Big Bazaar ,though it has been trying hard for advertising but it has to put more efforts to make its effect on the sales of Big bazaar and make people aware . We have tried our best efforts to keep our research fair and unbiased

ACKNOWLEDGEMENT

We would like to thank Prof. Sanjana Sapra and my guide for assigning me this highly learning project and further enlightening me with his immense knowledge and helping me out to carry out this project . She has helped us in finding a project of our interest and then to delve deeply in the topic. Our sincere regards to Prof. Subroto Ganguly, Professor of Marketing department, for guiding us in completion of this project work. We would like to give special thanks to authorities of Big Bazaar who gave their valuable time and suggestions to make improvement in our report time to time.

TABLE OF CONTENTS1.Executive Summary 2.Acknowledgement 3.Introduction 1Retail Industry in India 2Big Bazaar 4.Literature Review 1What is Retailing 2Types of Retailing 3Global Retail Industry An Overview 4Major Player in Retail Industry 5.Research Objective 6.Research Methodology 7.Data Analysis 8.Findings 9.Recommendations & Limitations 10.Learning & Conclusion 11.Bibliography 12.Annexure 41 42 43-64 65 66 67 68 69-71 11-40 2 3 5-10

INTRODUCTIONEvery business conducted for the purpose of selling or offering for sale any goods, wares, or merchandise, other than as a part of a "wholesale business" to the final consumer can be defined as retail business Retail is the second-largest industry in the United States both in number of establishments and number of employees. The U.S. retail industry generates $3.8 trillion in retail sales annually ($4.2 trillion if food service sales are included), approximately $11,993 per capita. The retail sector is also one of the largest worldwide. Wal-Mart is the world's largest retailer and the world's largest company with more than $312 billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States and more than 400,000 internationally. The second largest retailer in the world is France's Carrefour.

RETAIL INDUSTRY IN INDIARetail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. 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 centres, multi-storeyed 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. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. India represents an economic opportunity on a massive scale, both as a global base and as a domestic market. Indian Retail sector consists of small family-owned stores, located in residential areas, with a shop floor of less than 500 square feet. At present the organized sector accounts for only 2 to 4% of the total market although this is expected to rise by 20 to 25% on YOY basis. Retail growth in the coming five years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing consumer credit will also help in boosting consumer demand. The structure of retailing will also develop rapidly. Shopping malls are becoming increasingly common in large cities, and announced development plans project at least 150 new shopping malls by 2008. The number of department stores is growing much faster than overall retail, at an annual 24%. Supermarkets have been taking an increasing share of general food and grocery trade over the last two decades. However, Distribution continues to improve, but it still remains a major inefficiency. Poor quality of infrastructure, coupled with poor quality of the distribution sector, results in logistics costs that are very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high level. Distribution and marketing is a huge cost in Indian consumer markets. It's a lot easier to cut manufacturing costs than it is to cut distribution and marketing costs. Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in recent years, while retailing currently remains closed to FDI. However, the Indian government has

indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It has allowed 51% FDI in "single brand" retail. The next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that will not be for long. Indian companies know Indian markets better, but foreign players will come in and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming struggle. The key players currently operating in the Indian retail industry including pantaloons, Future Group, Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd and Videocon Appliances Ltd. This section analyses these players on the basis of current strategy they are pursuing and their possible future strategic direction.

BIG BAZAARBig Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the Pantaloon Group. It works on same the economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd. It all started in 2001, when the first Big Bazaar store was opened in Kolkata, followed by the second store in Hyderabad. At that time, these were the first stores based on this format, and only had apparel and general merchandise in their stores. Business picked up pace, and in July 2002, at the time of adding the fourth Big Bazaar outlet at Lower Parel in Mumbai, it introduced the first Food Bazaar, too, which managed to get tremendous response from day one itself. they been getting a very high footfall for every new store that they have opened. Today, it has reached a stage where it has 25 Big Bazaar and 38. Food Bazaar outlets all over the country. Having surpassed the number of Big Bazaar outlets, Food Bazaar also has standalone formats. There are four such formats in Mumbai, and one each in Ghaziabad (Uttar Pradesh), Kolkata and Bangalore Isse sasta aur accha kahin nahi

Shop till you drop! Big Bazaar has democratised shopping in India and is so much more than a hypermarket. Here, you will find over 170,000 products under one roof that cater to every need of a family, making Big Bazaar Indias favourite shopping destination. At Big Bazaar, you will get the best products at the best prices -- this is our guarantee. From apparel to general merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods, car accessories, books and music, computer accessories and many, many more. Big Bazaar is the destination where you get products available at prices lower than the MRP, setting a new level of standard in price, convenience and quality.If you are a fashion conscious buyer who wants great clothes at great prices, Big Bazaar is the place to be. Leveraging on the companys inherent strength of fashion, Big Bazaar has created a strong value-for-money proposition for its customers. This highlights the uniqueness of Big Bazaar as compared to traditional hypermarkets, which principally revolve around food, groceries and general merchandise. Boasting of an impressive array of private labels, Big Bazaar is continually striving to provide customers with a complete look. So be it mens wear, womens wear, kids wear, sportswear or party wear, Big Bazaar fashions has it all! Big Bazaar is both big and a bazaar. It is unlike, say, a Walmart or even a Food world. Big Bazaar is almost an air-conditioned version of any Indian bazaar. It is a slightly orderly and organised version of, say Chickpet for Bangalore guys or Dadar for Mumbaiites. There is a huge crowd which can move in almost any direction. You can buy anything (pretty much everything is available at Big Bazaar). It is not a place where you can browse through at leisure and pick up a few things here and there. This is a place if you are serious about your shopping. And the worst part is at the checkout

counter, where the line can stretch as much as a line for a famous ganpati pandal or a cricket match. Parking is a pain too. But, the place ticks. In both Hyderabad and Bangalore, the outlets dont have a place for customers to stand esp on weekends. Customers wait outside it some before it opens in the morning. Bombay is slightly better. Big Bazaar offers good prices. Really good prices. Prices that tempt. Apart from simple price chopping, there are deals (2 for the price of 1 or prices reduced on a combination etc). The perception of Big Bazaar is that it facilitates some serious savings on grocery shopping. And it works. And make no mistake, it attracts the well heeled as much as it attracts Raju from across the street. That has worked for Big Bazaar is that it has been able to connect with the customers in the right manner. They had filled a need gap which was there in the market. Apart from that, their competence in providing products at lowest prices and great quality in an ambience much better than what the customers were used to, has also contributed to their success. The focus is on continuing to provide very high value for money to customers by providing exciting offers throughout the year. It will be facilitated by constantly working on its buying and supply chain efficiencies. Having already achieved economies of scale and size, they intend to better their gains by opening new stores regularly. One of the key philosophies of Mr Biyani that is highly followed is Rewrite rules, retain values. In essence, it means they dont take anything as fixed. They are constantly on the lookout for finding new ways and means to improve the current state of affairs. Thus, innovation is a very important aspect of their working strategy. The other very important philosophy is that of Indian ness. All their concepts and formats as well as the way they go about things are very Indian. The way Big Bazaar is designed and the way the whole concept has developed reflects a sense of Indian ness

Glimpses of few Advertising and Sales Promotion Campaigns of Big BazaarCost Effective ad for Surprisingly Inexpensive Big Bazaar This is a well articulated print advertisement campaign for Big Bazaar to highlight their unique marketing strength, extreme low price. However, even before this idea has been exercised to

highlight a product by placing it in a stark different environment. Nevertheless, this advertisement campaign is very well crafted out. Further, the ad is not at all confusing and it straight way conveys the message without loosing focus. Like the marketing strength of the company, this campaign is too cost effective. Further, the ad has the capacity to attract immediate peoples attention. The tag line of the ad is Surprisingly Inexpensive. The ad has been created by Mudra DDB Communication. The company recorded around one million foot fall from 26 th to 28th January this year in 2007,which were termed as SABSE SASTE 3 DIN,MAHA SAVING OFFER,which was 43 crore last year . This was a special print advertisement of Big Bazaar prepared for womens day sales promotion ,where through the advertisement it is shown that forget about the common females even all hindu goddesses are busy in shopping at BIG bazaar and celebrating their day. This was the print advertisement that Big Bazaar came out with which was regarding its exchange offer sales promotion, where an old man is hiding himself behind sofa ,because now every old thing can be exchanged with new one at Big Bazaar. VISAKHAPATNAM: The boys and girls oozed with confidence as they hit the ramp showcasing the latest trends in apparel collections at the Big Bazaar. It was a fashion show with a difference as all the 20 participants were sales staff of the company with no prior experience in modelling. They were taught the nuances of walking on the ramp for a few hours before the show. While the boys displayed sherwanis, shirts, formal wear and khadi wear, the girls displayed designer saris, capris, denim shirts and tops. The show was organised as part of the price challenge promotion being held from May 13 to 19.

LITERATURE REVIEWWHAT IS RETAILING Retailing is all the activities involved in selling goods and services directly to final consumers for their personal, non-business use. The word retail is derived from the French word retailer, meaning to cut a piece off or to break bulk. A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store. Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy. TYPES OF RETAILING Retailing can be classified under two heads: 1Store Retailing 2Non-store Retailing Store Retailing Retail stores come in a variety of shapes and sizes, and new retail types keep emerging. They can be classified by one or more of several characteristics: 1Amount of service 2Product line 3Relative prices 4Control of outlets 5Type of store cluster 1) AMOUNT OF SERVICE

Different products require different amounts of service, and customer service preferences vary:

Self-service retailers Customers are willing to perform their own "locate-compare-select" process to save money. Today, self-service is the basis of all discount operations, and typically is used by sellers of convenience goods (such as supermarkets) and nationally branded, fast moving shopping goods (such as catalog showrooms). Limited service retailers Retailers such as Sears and J. C. Penney, provide more sales assistance because they carry more shopping goods about which consumers need information. Their increased operating costs result in higher prices. Full service retailers Like specialty stores and first-class department stores, have salespeople to assist customers in every phase of the shopping process. Full service stores usually carry more specialty goods for which customers like to be waited on. They provide more liberal return policies, various credit plans, free delivery, home servicing, and extras such as lounges and restaurants. 2) PRODUCT LINE: Retailers can also be classified by the depth and breadth of their product assortments. The depth of a product assortment refers to the number of different versions of each product that are offered for sale. The breadth of the assortment refers to the number of different products that the store carries. Specialty stores carry a narrow product line with a deep assortment within that line. Examples include stores selling sporting goods, books, furniture, electronics, flowers, or toys. Today, specialty stores are flourishing, due to the increasing use of market segmentation, market targeting, and product specialization. A department store carries a wide variety of product lines. Each line is operated as a separate department managed by specialist buyers and merchandisers.

Supermarkets are large, low-cost, low-margin, high-volume, self-service stores that carry a wide variety of food, laundry, and household products. Convenience stores are small stores that carry a limited line of high-turnover convenience goods. These stores located near residential areas and remain open long hours, seven days a week. Convenience stores must charge high prices to make up for higher operating costs and lower sales volume, but they satisfy an important consumer need. Superstores, combination stores, and hypermarkets are all larger than the conventional supermarket. Many leading chains are moving toward superstores because their wider assortment allows prices to be 5-6% higher than conventional supermarkets'. Combination stores are combined food and drug stores. Examples are A&P's Family Marts and Wal-Mart's Super centers. Hypermarkets combine discount, supermarket, and warehouse retailing, and operate like a warehouse -- products in wire baskets are stacked high on metal racks, and forklifts move through aisles during selling hours to restock shelves. They usually give discounts to customers who carry their own heavy appliances and furniture out of the store. 3) RELATIVE PRICES Retailers can also be classified by the prices they charge. Most retailers charge regular prices and offer normal quality goods and customer service. Some offer higher quality goods and service at higher prices. Retailers that feature low prices include: Discount stores sell standard merchandise at lower prices by accepting lower margins and selling higher volume. Occasional discounts or specials do not make a store a discount store. A true discount store regularly sells its merchandise at lower prices, offering mostly national brands, not inferior goods. In recent years, facing intense competition from other discounters and department stores, many discount retailers have "traded up" by improving their decor, adding new lines and services, and opening suburban branches. This, of course, has led to higher costs and prices. With the discounters trading up, off-price retailers have moved in to fill the low-price, high-volume gap. They obtain a changing and unstable collection of higher-quality merchandise, often leftover goods, overruns, and irregulars at reduced prices from manufacturers or other retailers. The

three main types of off-price retailers are factory outlets, independents, and warehouse clubs. 4) CONTROL OF OUTLETS: About 80% of all retail stores are independents, accounting for 2/3 of retail sales. Other forms of ownership include the corporate chain, the voluntary chain and retailer cooperative, the franchise organization, and the merchandising conglomerate. The chain store is one of the most important retail developments of this century. Corporate chains appear in all types of retailing, but they are strongest in department, variety, food, drug, shoe, and women's clothing stores. The size of corporate chains allows them to buy in large quantities at lower prices, and chains gain promotional economies because their advertising costs are spread out over many stores and over a large sales volume. The great success of corporate chains caused many independents to band together under contractual associations. The voluntary chain is a wholesaler-sponsored group of independent retailers that engages ingroup buying and common merchandising. The retailer cooperative is a group of independent retailers that set up a jointly- owned central wholesale operations and conduct joint merchandising and promotion efforts. A franchise is a contractual association between a manufacturer, wholesaler, or service organization (the franchiser) and independent businesspeople (the franchisees) who buy the right to own and operate one or more units in the franchise system. Franchising has been prominent in fast-food companies, motels, gas stations, video stores, auto rentals, hair cutting salons, real estate, and dozen of other goods and services. The compensation received by the franchiser may include an initial fee, a royalty on sales, lease fees for equipment, and a share of the profits. Merchandising conglomerates are corporations that combine several different retailing forms under central ownership and share some distribution and management functions. Examples include Dayton-Hudson and J. C. Penney.

5) TYPE OF STORE CLUSTER: Most stores today cluster together to increase their customer pulling power and to give consumers the convenience of one-stop shopping: Central business districts A central business district comprises of banks, department stores, specialty stores, and movie theatres. A shopping center is a group of retail businesses planned, developed, owned, and managed as a unit. Non-Store Retailing Although most goods and services are sold through stores, non-store retailing has been growing much faster than store retailing. Traditional store retailers are facing increasing sales competition from catalogs, direct mail, telephone, home TV shopping shows, on-line computer shopping services, home and office parties, and other direct retailing approaches. Non-store retailing includes direct marketing, direct selling, and automatic vending. Retail Formats 1) Department Store

About the format: Department stores are unique in terms of the shopping experience they offer, the services they provide and atmosphere that they offer. Department stores operators, such as Sears, Roebuck & Co and JC Penney, Karstadt Quelle continue to dominate traditional mixed retailing on a global scale. However, they are in danger of being neither broad enough nor specialised enough to compete in the modern retail environment. The department store format requires significant purchasing power and economies of scale, and, consequently, most department stores are chained multiples. Characteristics: Customers : Stock Management : Strategy of Price Setting : Size : Land Holding : Number of SKUs : Level of Service : Leading Players in the format : Upper Class 2 3 months Higher prices 30,000 1,00, 000 sq ft Rental 1,00,000 High Sears, JC Penny, Karstadt Quelle

2) Supermarkets Definition: Relatively large, low-cost, low-margin, high-volume, self service operation designed to serve total needs for foods and household products. A conventional supermarket is a self service food store offering groceries, meat, and produce with limited non food, mainly daily use items. A Superstore is a large Supermarket with expanded service like bakery, sea food section.

About the format: Superstores and supermarkets are the backbone of the grocery sector in developed markets. This area of the market has endured a difficult time caught between the wide assortments and low prices of super-centers and the narrow assortments and ultra-low prices of discounters- but the mainstream retailers are fighting back with quality, convenience, non-food concessions and foodservice solutions. Supermarkets are well-suited to consumer demand for convenient shopping. Indeed, while supermarkets have traditionally been heavily focused on the sale of grocery products, they seem to have expanded their product offer to include an ever-broader range of nonfood goods. As a result, supermarkets were capable of fulfilling a growing proportion of consumers' weekly shopping needs.

Characteristics: Customers : Stock Management : Strategy of Price Setting : Size : Land Holding : For all 10 15 days Mixed Price 10,000 30,000 sq ft Rental

Number of SKUs : Level of Service : Leading Players in the format :

20,000 30,000 Average Royal Ahold, Kroger

3) Discount stores

About the format: The traditional German-style hard discount store (low prices, limited assortment, high own brand participation) has exerted an impact in the world retail scenario, not least thanks to the quick expansion of the formats originator, Aldi and Lidl another German discounter. Alongside food discount stores there are a number of growing general merchandise discounters that are making sizeable inroads on the grocery market, such as Family Dollar, Dollar Tree and Dollar General. Aggressive discounting characterised food retailing which means retailers of all types were forced to cut costs to allow them to keep their prices competitive. The increasing prevalence of discounting resulted from the expansion of major retailers with a discounting focus, such as Wal-Mart, and economic difficulties in major markets which served to increase consumer price sensitivity. Characteristics: Customers : Stock Management : Strategy of Price Setting : Size : Deep Discounters: Soft Discounters: Land Holding : Number of SKUs : Soft Discounters: Medium or Low Class 30 days Incredibly low 3000 5000 sq ft 60,000-80,000 sq ft Rental Deep Discounters: 1000 2500 30,000 - 60,000

Level of Service : Leading Players in the format : 4) Hypermarts or Supercenter

Low Aldi, Lidl, Dollar General

About the format: Europe is the home of the Hypermart a pioneering food and non-food destination format developed by the French and exported to the USA in the 1980s. The format was an initial success in US, but retailers such as Meijer and Wal-Mart took the concept and gave it an American twist to much acclaim and commercial success the Supercenter was born. While Meijer is arguably the innovator and more quality-led practitioner of supercentres, it is Wal-Mart that has become the trailblazer, backed up by a phenomenal financial arsenal. Hypermarts or Supercenters are well-suited to the modern retail environment. Their considerable size allows them to cater for the growing demand for convenient shopping options, as they offer an extensive range of products under a single roof. Moreover, the major Hypermart retailers are capable of exploiting significant economies of scale to underpin discounting strategies, and thus

appeal to consumers' growing expectations of low prices. The strategy followed is to gain market share over a broad catchments zone and increase store traffic with regular promotions and competitive prices compared with the lowest in the market. Also develop lines of store brands with a reputation for quality.

Characteristics: Customers : Stock Management : Strategy of Price Setting : Size : Land Holding : Number of SKUs : Level of Service : Leading Players in the format : 5) Convenience stores Medium and Lower class 30-45 days Lowering prices as much as possible 1,00,000 2,50,000 sq ft Rental 50,000 to 70,000 Average Wal-Mart, Carrefour

About the format: Unlike in much of Europe, where the concept of convenience stores has been largely unrelated, the convenience store and the gas station have long been closely associated in the USA. While developments in the food retailing sector during the review period were heavily influenced by major players' discounting strategies, the strong performance of convenience stores

underlined retailers' ongoing capacity to generate added value by providing a concept that fits with consumers' modern lifestyles. As factors such as the rising number of women entering paid employment, an increase in single-occupancy households and extended working hours have increased the pressure on consumers' time, the demand for conveniently located stores with long opening hours has increased significantly. Characteristics: Customers : Stock Management : Strategy of Price Setting : Size : Land Holding : Number of SKUs : Level of Service : Leading Players in the format : 6) Specialty Stores Customers requiring convenience 15 20 days High (Price higher than supermarket) 2000 3000 sq ft Rental 2000 3000 [also eatables] High 7-Eleven

About the format: In recent years the specialty apparel stores has been one of the weakest, slowest growing areas in retailing. Characteristics: Customers : Stock Management : For all 1 month for locally stocked goods and up to 7 months for imported goods Strategy of Price Setting : Size : Land Holding : Number of SKUs : Level of Service : Leading Players in the format : Quite high prices 50,000 1,20,000 sq ft Rental 5000 High Ikea, Gap

RETAIL INDUSTRY: AN OVERVIEW The Global Retail Industry The global retail industry has traveled a long way from a small beginning to an industry where the world wide retail sales alone are today valued at $ 7 trillion (Source: 2006 Global Retail Report, Deloitte Touch Tohmatsu). The top 200 retailers alone account for 30% of worldwide demand. Retail sales being generally driven by peoples ability (disposable income) and willingness (consumer confidence) to buy, compliments the fact that the money spent on household consumption worldwide increased 68% between 1980 and 2005.

GLOBAL 200 HIGHLIGHTS

The leader has in-disputably been the USA where some two-thirds or $ 6.6 trillions out of the $ 10 trillions American economy is consumer spending. About 40% of that ($ 3 trillions) is spending on discretionary products and services. Retail turnover in the EU is approximately Euros 2000 billion and the sector average growth looks to be following an upward pattern. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 2007-08. Positive forces at work in retail consumer markets today include high rates of personal expenditures, low interest rates, low unemployment and very low inflation. Negative factors that hold retail sales back involve weakening consumer confidence. Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services .The impact can be best seen in countries like U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector. Retail Has Evolved On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Marts dominance, theres little about todays environment that looks like the mid-1990s. The global economy has changed, consumer demand has shifted, and retailers operating systems today are infused with far more technology than was the case six years ago. Beyond Borders: High Potential In Emerging Markets Saturated home markets, fierce competition and restrictive legislation have relentlessly pushed major retailers into the globalization mode. Since the mid-90s, countless Governments have opened up their economies to free markets & foreign investment that has been a plus for many a retailer. Also, emerging markets have been witnessing growing urbanization leading to significant shifts in consumer demand and behavior significant concentrations of consumers capable of supporting large-scale formats, such as supermarkets and hyper marts. The potential in them is thus being unleashed with major western retailers expanding their operations there. However, a more near-term concern, has been the global economic slowdown that has resulted from dramatic cutback in corporate IT and other types of capital spending. Consumers themselves have become much more price sensitive and conservative in their buying, particularly in the more advanced economies.

INDIAN RETAIL INDUSTRYRetailing in India is one of the significant contributors to the Indian economy and accounts for 35% of the GDP. However, this sector is in a fragmented state with over 12 million outlets operating in the country and only 4% of them being larger than 500 sq ft in size. This is in comparison to 0.9 million outlets in USA, catering to more than 13 times of the total retail market size. Thus, India has the highest number of outlets per capita in the world with a widely spread retail network but with the lowest per capita retail space (@ 2 sq ft per person as compared to 16 sq ft per person for USA).

300 250 200 150 100 50 0 2004 2005

Organiz ed Retailing - Market Siz e

30 25 20 15 10 5 0

2006

2007

2008

2009

2010 Figures in USD Mn

Total Retailing Mark et Organiz ed Retailing

The Indian retailing industry is currently estimated at $205 b (Rs.930, 000 Crores) and is expected to grow at 5% p.a. The current size of the organized retailing market is $6 b (Rs.28,000 Crores), thereby, a mere 3% of the total retailing market with a projected growth rate of 25 30% p.a. and is estimated to become $8 b (Rs.35,000 Crores) by 2005 and $24 b (Rs.100,000 Crores) by 2010, with its contribution to total retailing sales likely to rise to 9% by decade end.

Share of Organized Retailing 2010

9%

Share of Organized Retailing 2004

3%

The Organized Retailing PieJewellery & watches 7% Catering services 7% Furniture & furnishings 8% Books, music & gifts 3% Mobile handsets 3% Others 4%

Footwear 9%

Clothing & textile 39% Consumer durables 9% Food & grocery 11%

Government policy for Retail sector in India There has been vigorous opposition to FDI in retailing from small traders who fear that foreign retailing companies would take away their business, leading to the closure of many small trading businesses and result in considerable unemployment. Given the political clout of the small trading community, owing to their enormous numbers, the government has barred FDI in retailing since 1997. Therefore till January 2006, foreign retailers can only enter the retailing sector through franchising agreements. As a big move to liberalize FDI regime, on January 24 the cabinet approved new FDI norms for retailing. It has allowed up to 51% FDI in single brand retailing, as there is a strong view that FDI in this segment would not displace jobs or impact the local industry but help create employment. This liberalization is good news for many of the world's marketers of top labels, who currently sell their goods through the country's handful of homegrown, domestically owned and operated retailers. Potentially, any single branded consumer product would be permitted to put up money for a majority stake in retail shops selling one brand. EVOLUTION OF INDIAN RETAIL

The Indian retail sector has evolved from traditionally being a largely informal sector to a formal one, structured by international standards. While earlier it was largely characterized by small retailers and high prevalence of tax evasions and non existent labor laws, things have changed otherwise today. While earlier the Indian retail was dominated by mom n pop stores (kiranas, as called in India), street markets and kiosks, a large number of international players have entered the Indian retail industry, changing the whole face of how product distribution was done in India.

Traditional Retail Formats Traditionally retail has always been a no-frill-direct- selling layout. The retailers were merely shop owners (usually), who would ideally sit at a selling place full of products and follow customers instructions as and when they come, and bill them. Nothing less, nothing more. Though, they are not completely non-existent today, neither are they totally out-of-sync with todays consumer needs, but a lot of them are being driven out of business (especially in the Developed World) owing to the better alternatives of modern, more efficient formats which are

more convenient, cost efficient and have an associated feel-good factor owing to the battery of services offered. Traditional retail formats have ideally been of 4 forms, viz. mom n pop stores, street markets, kiosks and exclusive/multi brand outlets. Mom n pop stores, (usually called kirana stores in India) are the oldest retail formats. The diversity of products offered depends on the scale of operations and the money invested. Thus, the product lines were usually limited. The pricing was also usually cost-plus pricing for self manufacturing and MRP for branded items. Promotions were usually nil and distributions were also limited, as products were sold to only those customers who willingly visited the shop. Thus, the physical evidence factor, or the location, was a vital factor in deciding the success and footfalls of the shops. People factor was also important, as the more the retailer used to know and befriend the nearby residents, more was his regular clientele and higher was his shops loyalty. Street market is an outdoor market such as traditionally held in a market square in a market town, and are often held only on particular days of the week. Very similar markets or bazaars can also be found in large enclosed spaces, instead of on a street. In Hong Kong there are street markets of various kinds such as fresh foods, clothing, cooked foods, flowers, and even electronics. Some of them are gradually being replaced by shopping centres, markets in municipal service buildings, and supermarkets while some become trourist attractions like Tung Choi Street and Apliu Street. Some examples of street markets are: Berwick Street Market, Camden Market, East Street Market and Portobello Road Market in London, Janpath in Delhi etc.

A street market in Hong Kong The only way this format differs from the above is in its way of pricing which is done on the basis of perceived benefit and is subject to differ with different customers. Also, in this format,

unlike all others, there is a lot of room for bargaining. Life Cycle of Retail Formats Formats Adopted by Key Players Retailer RPG Retail Original Format Super Market(Food World) Later Formats Hyper Market(Spencer) Specialty Store (Music World) Hypermarket(Big Bazaar) Discount Store( Tru mart) Supermarket(TBA) Hypermarket(Hypercity)

Pantaloon Piramals K Raheja Group

Branded Outlets (Pantaloon Shoppe) Departmental Store Departmental Store (Shoppers Stop) Specialty Store(Crossword)

Tata/Trent

Departmental Store (Westside)

Hypermarket ( Star India Bazaar)

In the above graph, we can see the stage of the life cycle of different retail formats in the western countries. In India it is difficult to predict if the same trend will be evident as organized retailing and modern retailing have a long way to go in terms of market coverage. However if we focus on the shift in retail formats by various big retail houses, it would not be wrong to say that retail in India will see similar evolution as seen by its western counterparts. We can see from the above table that retail powerhouses like Pantaloon, K Raheja Group and Tata Group have shifted focus from department stores and stand alone single brand stores to new formats like hypermarkets and super centers. It is very important to understand the consumer habits and see if the market is ready to accept a new format. If a format enters a pre mature market, it might not succeed as consumers are not willing to change their old buying habits. On the other hand if a format enters in a late stage, it has to face heavy competition and loses the first mover advantage. Therefore it is important to strike with a format at the right time and reap maximum benefits. EMERGING TRENDS IN INDIAN RETAIL INDUSTRY Tier-II Phenomenon Small towns with a population of 0.5 1 million {like Surat, Lucknow, Dehra Dun, Vijaywada, Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar, Varanasi, and Ludhiana etc}, are witnessing a defined increase in disposable income coupled with high aspirational levels leading to enhanced spending on consumer goods along with lesser aversion to credit. With consumption in metros already being exploited {85% of retail sales as of now}, these Tier-II areas are fresh targets and are expected to contribute 20-25% of organized retailing sales. Retailers are introducing contemporary retail formats such as hypermarkets and supermarkets in these new pockets of growth. Mall development activity in these small towns is also picking up, creating quality space for retailers to fulfill their aggressive expansion plans. Keeping in view the relatively smaller size of the market, the average size of a retail mall in Tier-II cities ranges

between 100,000 120,000 square feet in comparison with the larger metros where a number of malls measure over 500,000 square feet. Entry of International Players The fight today is not between Big organized retail stores (3%) and Unorganized Kirana Shops (97%), but its between global giants like Wal-Mart, Tesco and Shoppers Stop, Pantaloons. Entry of these global players will impact the way India Retailers operate, as much as it will change the way Indian consumers live and do their shopping. They will no longer be just dependent on their local Kirana shop for their everyday needs. They could just shop once a week or once a month at comparatively cheaper rates and remain hassle free. Indian retailer will also need to quickly come to terms with the market realities. On one hand they will fight size factor and on the other hand great efficiencies

Emergence of New Retail Formats Currently the retail sector in India is populated with the traditional mom-and-pop stores and some 1000 odd supermarkets under organized retail chains. A daring few ventured into the Hypermarket segment with successful results and this format is being fast replicated by other players. This experience indicates that the Indian consumer has matured to the next level of shopping experience. Given the Indian conditions and the vast diversity a single format may not be possible for the national presence, but region specific formats may evolve. An interesting observation is that of lack of presence of organized retail chains in the rural/semi-urban centers as over 60% of Indian population is still in these parts. An ideal no frills model to start with would be ideal for the rural markets; this would help to take them to the next level of supermarket experience. Specialty Malls Keeping in mind the astonishing pace with which new supply is expected to enter the market, many mall developers, in a bid to offer a distinctive value proposition, are planning to develop specialty malls. These niche developments shall emerge as one-stop destinations in their chosen product categories. The Delhi-based Aerens Group has developed Gold Souk, an exclusive jewellery mall that is already operational in Gurgaon and has ambitious plans to replicate the concept across the country. Further, a number of analogous developments like a Wedding Mall by Omaxe Group, Automobile Mall etc are also in the offing. In line with international trends, Home Malls offering the entire range of building and interior dcor solutions are also coming up in various parts of the country including Pune (Ishanya promoted by Deepak Fertilizers and Petrochemicals Corporation Ltd), Gurgaon & Kolkata.

Price Correction Fallout of the surge in mall development activity shall be that developers will be forced to offer retailers prime real estate spaces at costs lower than those prevailing today, as the space required by retailers to fulfill their expansion plans is likely to be lesser than offered. This correction could result in a more structured retail real estate market that would allow retailers a higher margin on their real estate investments, thereby enabling them to expand faster. Further, the relatively over-served cities could witness higher activity, as real estate space becomes more affordable, thereby, reducing the break-even period for retailers. Moreover, under-served markets could provide enough margins to retailers to compensate for loss of margins in some of

the over-served markets. Traditional Retailers in Malls The abundant supply of retail space has provided retailers with the leeway to experiment with newer formats and product categories. Even traditional retailers like Benzer, Study by Janak, Mehrasons Jewellers etc are being pushed to modern retailing formats like shopping malls. Mall developers shall have sufficient incentive to operate on a revenue-sharing pricing model as many of these traditional retailers can generate higher sales per square foot as compared to the largerformat department stores, which shall translate into higher revenue realizations for developers. Transformation & Innovations of Supply Chain and Transportation logistics To counter the unbeatable advantages of convenience of a hop, skip and a jump access and home delivery, organized retailers seem to have just one option - offer attractive prices to the consumer. A successful retailer's winning edge will therefore come from sourcing - how best it can leverage its scale to drive merchandise costs down, increase stock turns and get better credit terms from vendors. Efficient supply chains can achieve this objective and fuel demand. The supply chain in India is full of inefficiencies- a result of inadequate infrastructure, too many middlemen, complicated laws and an indifferent attitude. However, they are gradually getting more matured with logistics service providers encouraged to innovate newer formats and models. The logistics service providers have begun to come out with innovative customized solutions for the retail chains like GATIs model for distribution of Alphonso mangoes throughout India with IT support. Supplier Retailer Relationships Organized retail increasing its presence, the traditional national distributor-regional wholesalerend retailer relationships are gradually getting streamlined. However this new model has been affecting the relationships that the manufacturer enjoys with the traditional system which is still the most dominant in the entire retail sector. The issue of differential pricing is being taken up at several forums and the growing dissatisfaction among the traditional retailers is being addressed by the manufacturers. However we see that in the long term, the role of a national distributor would slowly fade away or get restricted to the rural/ upcountry regions. The supplier-retailer

relationship would come under severe pressure as each would try to squeeze maximum margins out of other. More use of Technology Retailing, as discussed before, is at a nascent stage in India. The complicated information systems and underlying technologies are in the process of being established. Most grocery retailers like Food World have started tracking consumer purchases through CRM. The lifestyle retailers through their `affinity clubs' and `reward clubs' are establishing their processes. The traditional retailers will always continue to exist but organized retailers are working towards revamping their business to obtain strategic advantages at various levels - market, cost, knowledge and customer. With differentiating strategies - value for money, shopping experience, variety, quality, discounts, advanced technologies, change in the equilibrium with manufacturers and a thorough understanding of the consumer behavior, the ground is all set for the organized retailers. Community Involvement Footfalls in most malls are observed to be significantly higher on weekends. To ensure regular walk-ins on weekdays, mall developers have started to focus on involving the local community. They have recognized that their centers need to be entertaining, and that shoppers want their malls and town centers to blend with and reflect their own communities. Their philosophy today is thus to create a center where people would want to stay well beyond their shopping time to enact the rituals of urban life. Activities like karate classes and painting competitions for children pull their salary-earning parents to visit the mall. For example, South-dale Mall, USA contains a school, an auditorium, an ice-skating rink and even a zoo for the same reason. Dandia and Navratre parties at Ansal Plaza and Festival parties at other malls also have the same objective. Though such activities do not directly generate revenues for the mall developer, they go a long way in making local consumers recognize the mall as a place where they can do a lot more than merely shop. Further, components such as beauty parlors, card rooms etc also guarantee that housewives visit the mall on weekdays. Latest Developments in Retail

Retail at Gas Stations The concept of retailing at Gas Stations has been a recent development and certain Chain of stores like In and Out, 24/7, and food retailing outlets like Caf Coffee Day and Dominos have set shop at gas stations. However the concept will take time to pick up as consumer habits and life style are yet to synchronize with this concept. The concept of retailers at petrol pump has not caught the fancy of the population in India as much as it has in the west due the difference in the way petrol is filled in tanks. While in India, a pump attendant would fill petrol and then take the money; in western countries, the driver has to do the needful on their own and then go inside the store to pay the cashier. The cashier strategically sits at the end of the room so that as soon as the customer enters the aisle, he / she has products placed in shelfs on either side. Since there are some other customers who shop besides paying for petrol ensures that few customers have to wait in the line while the first transaction is taking place. This acts as another catalyst for waiting customers to have a look around and get induced to purchase something. The mindset of the western populace has become such that shopping at petrol pumps has become a leisure activity unlike India where one is in a hurry to get the tank filled and push off. Moreover the Gas stations are small in size and placed on crowded main roads which do not provide the ideal retailing environment for consumers.

MAJOR PLAYERS ENTER THE INDIAN RETAIL SECTOR Some of India s biggest players have realized the potential that retail holds and are making huge investments in this sector. Reliance Retail Reliance is set to revolutionize the retailing industry in India. The group is aggressively working on introducing a pan-India network of retail outlets in multiple formats. A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about. The retail initiative of Reliance will be without a parallel in size and the planned investment in this sector is expected at Rs. 40, 000 crores. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. The group's retail venture could one day wind up being India's equivalent of Wal-Mart. The Ambani enterprise is looking at a huge retailing push, which will cover the entire retailing ambit, including setting up shopping malls and hyper malls all over the country; though no final decision has been taken on this. The group plans to employee 5, 00, 000 employees in its retail venture. The malls will hawk everything, catering not just to mid to high-end customers but also to the mass market. In short, Reliance Industries will try to give consumers a complete shopping experience. The Reliance Group is likely to be the sole India franchisee for reputed international retail brands. Two names being mentioned in this context are those of US retail majors Target ($52 billion in revenue in 2005) and The Home Depot, an $81.5-billion company (2005 sales) with earnings of $5.8 billion in 2005. Bhartis entry in the Retail Sector Bharti Enterprises owned by Sunil Mittal is finalizing a massive retail foray. The group will be

entering into multi format retailing as they believe that a diverse country like India cannot have a single retailing format. The company has joined hands with WalMart, worlds largest retailer to enter into a joint venture. The joint venture vehicle will be a separate retail company. The agreement is being structured in a different manner to ensure that Wal-Mart does not own any stake in the front-end, retail arm and that it does not violate any existing rules. Sources close to the discussions said that there would be a profit-sharing agreement between WAL-Mart and Bharti and clauses to enable Wal-Mart to pick up a stake in the retail venture as and when FDI rules are changed.1.The long-term effects of price promotions on category incidence, brand choice and purchase quantity Koen Pauwels, Dominique M. Hassens and S. Siddarth, Market Research Abstract from: Journal of Marketing Research, Vol XXX1X, November 202, pp 421-439, To what extent do price promotions have a long-term effect on the components of brand sales category incidence, brand choice, and purchase quantity? Persistence modelling on weekly sales data of a perishable and a storable product derived from a scanner panel was undertaken and suggested, amongst other things, that permanent promotion effects are virtually absent for each sales component. The authors discuss the implications of their various findings and suggest areas for further research. 2.Do sales promotions really work? Edward Garner, Admap, July 2002, Issue 430, pp.30-32 Edward Garner discusses the value of sales promotion in brand building. His work is focused on deep price cut promotions and he asks 'do they work?' He examines some marketing objectives which sales promotions should meet:- (1) to gain new buyers for the brand, he concludes that it depends on the length of the reference period, over a short period promotions can generate many new buyers but over a long period it is difficult to obtain new buyers, (2) the objective of building loyalty to the brand is examined and the author demonstrates that little loyalty or brand building takes place, in fact deep cut price promotions could have the opposite effect by educating shoppers to value the offer more than the brand. A study of consumer attitudes to price promotions is described with the

conclusion that many shoppers show promiscuous attitudes to shopping. The author , however, agrees that many shoppers are loyal and describes a consumer panel which segments those with a propensity to purchase/not to purchase products on offer which confirms the suspicion that there is a tendency to continually promote to the same group of people. The conclusion is drawn that deep cut price promotions do not provide a tool for long term brand building. 3.Developing synergies between promotions and brands in different price-quality tiers Katherine N. Lemon and Stephen M. Nowlis, Market Research Abstract from: Journal of Marketing Research, Vol XXX1X, May 2002, pp 171-185. The authors examine synergies between different types of promotions, including interactions among feature advertising, display, price promotions, and the price-quality tier of the brand. The authors find, amongst other things, that high-tier brands benefit more than low-tier brands from price promotions, displays, or feature advertising when these promotional tools are used by themselves. The authors discuss theoretical implications as they relate to promotions and consumer decision making and outline strategic implications for retailers and manufacturers 4.Why is Global Advertising still the Exception, not the Rule? Jon Wilkins, Admap, February 2002, Issue 425 The author explains why truly global advertising is relatively limited and will be for some time. It shares some research findings to offer insight into which success factors are genuinely 'international'. This shows that few ads travel well. What are the factors that force a look beyond globally harmonised advertising? The article suggests economic factors; media environment; advertising regulations and category development. Some market differences intertwine with consumer differences, these include:- cultural differences; communications syntax; experience with the brand. Ipsos-ASI have pre-tested more than 25,000 ads across several countries and four main issues are addressed:- (1) heavy presence of the brand; (2) quality of the message; (3) executional style; (4) likeability. The results confirm that ads are refreshed and presented in an original way are more likely to be influential and persuasive than the average. However, it also confirms that there are many differences between specific countries within each of these themes.

5. An Investigation of Consumer Response to Sales Promotions in Developing Markets: A Three-Country Analysis. Lenard C Huff and Dana L. Alden, Journal of Advertising Research, Vol. 38, No. 3, May/June 1998, pp.47-56 Considering the importance of consumer sales promotions in the marketing mix of many consumer products throughout the world, there is a notable lack of research devoted to examining consumer response to sales promotions outside North America and Western Europe. In addition, relatively little research focuses on non-price promotions such as sweepstakes. This study develops and tests models explaining consumers' attitudes toward and use of coupons (a price-oriented promotion) and sweepstakes (a non-price promotion). The models are designed specificaliy for developing or newly industrialized countries with collectivist cultures and are tested with consumer samples from Taiwan, Thailand, and Malaysia. Aggregated data supports the modeis, yet cross-national differences also suggest that managers should consider cultural and economic differences when planning sales promotion strategy in developing or newly industrialized countries. 6. Who will win India's retail war? Gouri Shukla May 03, 2005 Retailing is like riding a bicycle, you can't stop pedaling. The organised retail industry in India is worth Rs 900 crore (Rs 9 billion) and counting. Who will win the race to be No 1? Will Pantaloons' size breast the tape or can Trent's cautious optimism survive the distance? 1Pantaloons' marketing and promotion costs were 3.34 per cent of sales. As the number of outlets went up from around 20 in 2002 to 44 in 2003, the chain's spends on advertising and promotions were down to 2.84 per cent of total income in 2004. 2In comparison, Trent advertising and promotion spends were 11.4 per cent of total income in 2004, compared to 12.3 per cent in 2003, for a relatively smaller scale of operations. 3In FY 2004, Trent spent 6 per cent of its turnover on employee costs (the figure hasn't changed for two years, even though the number of stores has increased from eight to 17). On the other hand, Pantaloons' employee costs as a percentage of total income have gone up from roughly 3 per cent in 2001 to 4.17 per cent in 2004 4That's not too much, especially if you consider that the number of employees has doubled in FY 2004 to 3,500, from 1,700 in 2003. (By April 2005, Pantaloons had close to 6,000 employees,

mostly at the front end.) 5Since 2002, Pantaloons' share price has moved from Rs 30 to Rs 882 (April 25, 2005) currently. 6Over the same period, Trent has climbed from Rs 71 to Rs 580.95. "Pantaloons' high reliance on debt to finance its growth remains a cause of concern," says the 2004 Fitch report on the retail industry 7Pantaloons' high reliance on debt to finance its growth remains a cause of concern," says the 2004 Fitch report on the retail industry. Pantaloons' debt-equity ratio was 1.86 as of 2003-04, compared to 2.17 in 2002-03. Trent's debt-equity ratio has remained fairly stable at 0.001 per cent in the same period. 8Consultants refuse to give their verdict on which player will be strongest in the long run. As Biyani himself admits, "There is no ideal retailing strategy to follow." 7. An Overview of Pay Per Click (PPC) Advertising By John V. W. Howe

Pay per click (PPC) advertising has revolutionized advertising on the Internet. This allows for very targeted advertising to Internet users who are searching for the particular item that is being advertised. Google Adwords and Yahoo Search Marketing are the two major PPC programs on the Internet today. Microsoft AdCenter is a recent newcomer to PPC programs 8. Behavioural response to sales promotion tools: a Hong Kong study Gerard Prendergast, International Journal of Advertising, Vol. 24, No. 4, 2005, pp.467-486Supermarkets are heavy users of sales promotion devices and need to be able to assess the effectiveness of these tools. Consumer response (brand switching, purchase acceleration, stockpiling, product trial, spending more) to five different sales promotion tools (price discounts, in-store demonstrations, coupons, sweepstakes and games, and 'buy one get one free') was investigated through a survey of 206 supermarket shoppers in Hong Kong. Price discounts and buy-one-get- onefree offers weddcfe felt by the consumers to be the most effective promotional tools for inducing purchase acceleration, stockpiling and spending more. In-store demonstrations were felt to be mainly effective in encouraging product trial. Coupons were considered effective mainly in inducing stockpiling and purchase acceleration. Sweepstakes and games, in contrast, were felt to be relatively ineffective in terms of generating all types of consumer response. Recommendations for marketers

are presented, along with suggested directions for future research. 9. The effect of product sampling on product trial, purchase and conversion Dalton McGuinness, Prof Philip Gendall and Stephen Mathew, International Journal of Advertising, Vol. 11, No. 1, 1992 Although several claims have been made about the effectiveness of product sampling as a sales promotion technique, there is relatively little published research in support of these claims. A study of 433 New Zealand household grocery shoppers examined the sampling of three newly-launched brands of toothpaste, shampoo, and dish washing liquid. The rates of sample trial measured were considerably higher than those commonly reported in the literature, but purchase and conversion rates were somewhat lower. There was little evidence that product sampling had any influence on conversion to the sampled brands, except when recipients actually used the samples or subsequently purchased the sampled brands as a result of trial. Overall, the samples were not accurately distributed to the brands' most likely prospects, although selective distribution was found to be a worthwhile objective because members of each target market tended to respond well to sampling. 10.Brand attitudes as measures of advertising effects Greene, Jerome D & Stock, J Stevens, Market Research Abstract from: Journal of Advertising Research, Volume 6, Number 2, June 2006, The majority of advertising research deals in one form or another with conscious consumer responses to advertising itself: aided recall, recognition, playback, believability, attitudes towards advertising and the like. The authors feel that the best way of evaluating advertising is to discover the change it makes in consumer attitude or behaviour by measuring the number of consumers who react favourably to the brand when the advertising is run and the corresponding number when the advertising is not run. Experiments using two matched sample panels are described. The authors show how to measure advertising effects by comparing brand attitudes of the "exposed" and the "unexposed" panels both of magazine and television advertising. In fact, comparable procedures have been devised so that it is possible to compare the effectiveness of television and magazine advertising.

RESEARCH OBJECTIVESMAIN OBJECTIVE-

To find out the influence of Advertising and Sales promotion on the sales of the Big Bazaar

SECONDARY OBJECTIVES1To find the most effective tool of Sales promotion technique to entice customers used by Retail businesses. 2To study various advertising and sales promotion techniques used by Big Bazaar. 3To find out the influence of Advertising and Sales promotion on the sales of Big Bazaar. 4To find the effectiveness of the Brand recall and Recognition of Big Bazaar. 5To find out the ranking of Big Bazaar with its relative competitors as per the customers. 6To find certain new techniques that Big Bazaar can adopt to improve its services

RESEARCH METHODOLOGYMEANING OF RESEARCHResearch is an active, diligent, and systematic process of inquiry aimed at discovering, interpreting, and revising facts. This intellectual investigation produces a greater knowledge of events, behaviors, theories, and laws and makes practical applications possible. The term research is also used to describe an entire collection of information about a particular subject, and is usually associated with the output of science and the scientific method

HYPOTHESIS-

Sales promotion of the Big Bazaar influences the sales of the Big Bazaaras

compared to other attributes.

RESEARCH DESIGNDESCRIPTIVE RESEARCHDescriptive research includes surveys and facts findings enquiries of different kinds .The major pupose of Descriptive research is the description of the state of affairs ,as it exists at present. It provides the data about the population or universe being studied . Descriptive research is used when the objective is to provide a systematic description that is as factual as accurate possible . In this project I have to find whether Advertising and sales promotion influences the sales of the Big Bazaar ,therefore my research is descriptive.

SAMPLE SIZE- The sample size that I have taken is 100 units ,out of which the number ofmale and female were as followsMale- 43 in number Female- 57 in number

SAMPLE AREA- Since the research is on Big Bazaar at SAHARA MALL situated Gurgaon ,sothe sample area that is covered is as folowsPRIMARY AREA Areas near the mall or situated in gurgaon SECONDARY AREA- Areas of Dwarka .

SAMPLE DESIGN- Simple random method SOURCES OF DATA COLLECTIONPRIMARY DATA - Interview, Questinnaire SECONDARY DATA - Internet, Magzines, Books, News Paper etc Data collected in this project is both collected both ffom both primary and secondry sources of data collection which are as follows-

DATA ANALYSIS1. Frequency to visit market for shopping Frequency Daily Twice a week Fortnightly Monthly Total 10 40 23 27 100 Percent 10.0 40.0 23.0 27.0 100.0 Valid Percent 10.0 40.0 23.0 27.0 100.0 73.0 100.0 Cumulative Percent 10.0 50.0

Frequency to visit market for shopping45 40 35 30 25 20 15 10 5 0 Daily Twice a week Fortnightly Monthly

FINDING- Maximum people that is 40% like to visit market twice a week, 27 % of the people prefer to visit monthly, 23% of people visit fortnightly and very little percentage that is 10% like to visit daily to the market.

Frequency

2. Like shopping during sales promotion offers Cumulative Percent 24.0 81.0 96.0 100.0

Frequency Highly agree Agree Not sure Disagree Total 24 57 15 4 100

Percent 24.0 57.0 15.0 4.0 100.0

Valid Percent 24.0 57.0 15.0 4.0 100.0

Like shopping during sales promotion offers60 50 Frequency 40 30 20 10 0 Highly agree Agree Not sure Disagree

FINDING- Sales promotion is very effective tool to entice people for shopping as great number of people that is more than 50% agree that they like to shop during various sales promotions.

3. Most attractive sales promotion offers Frequency Discount sales Buy 1 get 1 free Free gifts Exchange offers Loyalty programe Games and contests Total 53 19 17 6 2 3 100 Percent 53.0 19.0 17.0 6.0 2.0 3.0 100.0 Valid Percent 53.0 19.0 17.0 6.0 2.0 3.0 100.0 89.0 95.0 97.0 100.0 Cumulative Percent 53.0 72.0

Most attractive sales promotion offersExchange offers Free gifts Loyalty programe Games and contests

Buy 1 get 1 free

Discount sales

FINDING- Among the various sales promotions offered by the Big Bazaar discount sales is the most preferred sales promotion by the customers. Around more than 50%of the people like to shop during discount sales.

4. Visit to Big Bazaar Frequency Yes No 3.00 Total 80 19 1 100 Percent 80.0 19.0 1.0 100.0 Valid Percent 80.0 19.0 1.0 100.0 100.0 Cumulative Percent 80.0 99.0

Visit to Big Bazaar90 80 70 60 50 40 30 20 10 0 Yes No 3

FINDING- Around 80% of people visit to Big Bazaar out of the 100 people surveyed.

Frequency

5. Frequency to visit Big Bazaar Cumulative Percent 16.9 30.1 63.9 100.0

Frequency Weekly Fortnightly Monthly Sometimes Total Missing System Total 14 11 28 30 83 17 100

Percent 14.0 11.0 28.0 30.0 83.0 17.0 100.0

Valid Percent 16.9 13.3 33.7 36.1 100.0

Freequency to Visit to Big Bazaar35 30 Frequency 25 20 15 10 5 0 Weekly Fortnightly Monthly Sometimes

FINDING-Maximum people visit sometimes to big bazaar ,that less than monthly though the difference between the people who visit monthly and who visit sometimes is very insignificant.

6. One-Sample Statistics N Low price Attribute inducing shopping in Big Bazaar Sales promotion attribute of big bazaar Quality in ambience in big bazaar Innovative Advertising of Big Bazaar Essence of Indians in Big Bazaar Convenience in shopping at Big Bazaar 82 83 83 83 83 83 Mean 4.29 3.99 3.42 2.90 2.81 3.66 Std. Deviation .962 .930 1.298 1.122 1.273 1.451 .143 .123 .140 .159 Std. Error Mean .106 .102

One-Sample Test Test Value = 4 95% Confidence Interval of the Difference Lower Low price Attribute inducing shopping in Big Bazaar Sales promotion attribute of big bazaar Quality in ambience in big bazaar 2.755 81 .007 .29 .08 Upper .50

-.118

82

.906

-.01

-.22

.19

-4.058

82

.000

-.58

-.86

-.29

Innovative Advertising of Big Bazaar Essence of Indians in Big Bazaar Convenience in shopping at Big Bazaar

-8.902

82

.000

-1.10

-1.34

-.85

-8.535

82

.000

-1.19

-1.47

-.91

-2.119

82

.037

-.34

-.65

-.02

FINDING-Among all the attributes of big bazaar only sales promotion has proved to be significant that is greater than .05 therefore the hypothesis taken that sales promotion influences the sales of the Big Bazaar is correct.

7. Recall of biggest advertising campaign of Big Bazaar Frequency Yes No 4.00 Total 28 71 1 100 Percent 28.0 71.0 1.0 100.0 Valid Percent 28.0 71.0 1.0 100.0 100.0 Cumulative Percent 28.0 99.0

Recall of biggest advertising campaign of Big Bazaar80 70 60 50 40 30 20 10 0 Yes No 4

FINDINGS-

Frequency

Among the 100 respondents 71% were not able to recall its latest largest

advertising campaign ,which means that Big Bazaar is very weak at its advertising ,it has to increase its reach through all kinds of media not only during its sales promotion campaigns but also through out the year.

8. Statistics Recall of biggest advertising campaign of big bazaar Valid Missing Mean Std. Deviation Skewness Std. Error of Skewness Recall of biggest advertising campaign of big bazaar 19 0 1.95 .229 -4.359 .524

Frequency Yes No Total 1 18 19

Percent 5.3 94.7 100.0

Valid Percent 5.3 94.7 100.0

Cumulative Percent 5.3 100.0

Recall of biggest adve rtising campaign of Big Bazaar 20 15 10 5 0 Yes No

FINDING-Out of people who dont visit to Big Bazaar that is 19 out of 100 only one person was able to recall its promotional campaign ,which means it is not at all able to influence non visitors

Frequency

of Big Bazaar through its advertising. 9. Statistics Recall of biggest advertising campaign of big bazaar Valid Missing Mean Std. Deviation Skewness Std. Error of Skewness Recall of biggest advertising campaign of big bazaar Frequency Yes No 4 Total 26 53 1 80 Percent 32.5 66.3 1.3 100.0 Valid Percent 32.5 66.3 1.3 100.0 100.0 Cumulative Percent 32.5 98.8 80 0 1.70 .537 .392 .269

Recall of biggest adve rtising campaign of Big Bazaar 60 50 Frequency 40 30 20 10 0 Yes No 4

FINDING- Even out of people who visit Big Bazaar they were also not able to recall its latest advertising campaign so it implies that people visiting Big Bazaar are due to other reasons but not advertising 10. Preference for shopping rank wise at big bazaar Cumulative Percent 12.1 22.2 38.4 58.6 100.0

Frequency Very poor Poor Average Good Very good Total Missing System Total 12 10 16 20 41 99 1 100

Percent 12.0 10.0 16.0 20.0 41.0 99.0 1.0 100.0

Valid Percent 12.1 10.1 16.2 20.2 41.4 100.0

Preference for shopping rank wise at big bazaar45 40 35 30 25 20 15 10 5 0 Very poor Poor Average Good Very good

FINDING-Consumers prefer Big Bazaar most for shopping, around 41% people rate it as very

Frequency

good for shopping.

11. Preference for shopping at subhiksha Cumulative Percent 13.1 29.3 64.6 89.9 100.0

Frequency Very poor Poor Average Good Very good Total Missing System Total 13 16 35 25 10 99 1 100

Percent 13.0 16.0 35.0 25.0 10.0 99.0 1.0 100.0

Valid Percent 13.1 16.2 35.4 25.3 10.1 100.0

Preference for shopping at subhiksha40 35 30 25 20 15 10 5 0 Very poor Poor Average Good Very good

FINDING-Subhiksha one of the competitor of Big Bazaar has been rated average by most of the customers.

Frequency

12. Preference for shopping at Spencer Cumulative Percent 21.2 36.4 54.5 82.8 100.0

Frequency Very poor Poor Average Good Very good Total Missing System Total 21 15 18 28 17 99 1 100

Percent 21.0 15.0 18.0 28.0 17.0 99.0 1.0 100.0

Valid Percent 21.2 15.2 18.2 28.3 17.2 100.0

Preference for shopping at Spencer30 25 Frequency 20 15 10 5 0 Very poor Poor Average Good Very good

FINDING -Spencers has been rated good for shopping by customers, so it has come out as the closest competitor of Big Bazaar.

13. Preference for shopping at Vishal Mega Mart Cumulative Percent 27.3 48.5 61.6 76.8 100.0

Frequency Very poor Poor Average Good Very good Total Missing System Total 27 21 13 15 23 99 1 100

Percent 27.0 21.0 13.0 15.0 23.0 99.0 1.0 100.0

Valid Percent 27.3 21.2 13.1 15.2 23.2 100.0

Preference for shopping at Vishal Mega Mart30 25 Frequency 20 15 10 5 0 Very poor Poor Average Good Very good

FINDING-Though the distribution is quite even in the case of Vishal Mega Mart but inclination towards poor is more so most of the people dont like to shop at Vishal Mega Mart.

14. Preference for shopping at Salasar Cumulative Percent 27.3 63.6 80.8 93.9 100.0

Frequency Very poor Poor Average Good Very good Total Missing System Total 27 36 17 13 6 99 1 100

Percent 27.0 36.0 17.0 13.0 6.0 99.0 1.0 100.0

Valid Percent 27.3 36.4 17.2 13.1 6.1 100.0

Preference for shopping at Salasar40 35 30 Frequency 25 20 15 10 5 0 Very poor Poor Average Good Very good

FINDING-Most of the people term as shopping at Salasar as most poor experience therefore does not like to shop there.

15. StatisticsPreference for shopping rank wise at big bazaar Preference for shopping at Subhiksha Preference for shopping at Spencer Preference for shopping at Vishal mega mart Preference for shopping at Salasar

N Mean

Valid Missing

99 1 3.69 .142 1.412 -.713 .243

99 1 3.03 .117 1.165 -.179 .243

99 1 3.05 .142 1.410 -.180 .243

99 1 2.86 .155 1.545 .174 .243

99 1 2.34 .119 1.188 .680 .243

Std. Error of Mean Std. Deviation Skewness Std. Error of Skewness

Preference for shopping at Big Bazaar as compared to its competitors

4 3.5 3 2.5 Frequency 2 1.5 1 0.5 0 -0.5 -1Mean Std. Error of Mean Std. Deviation

Big Bazaar

Subhiksha

Spencer

Vishal Mega M art

Salasar

Skewness

Std. Error of Skewness

FINDING- Big Bazaar is the most preferred destination as compared to its competitor

16. Recognition of logo of Big bazaar Cumulative Percent 12.0 25.0 99.0 100.0

Frequency Red and white Blue and green Orange and blue Black and white Total 12 13 74 1 100

Percent 12.0 13.0 74.0 1.0 100.0

Valid Percent 12.0 13.0 74.0 1.0 100.0

Recognition of logo of Big bazaarBlack and white Red and white Blue and green

Orange and blue

FINDING-About three-fourth people know the colour of its logo, so its brand recognition is high.

17. Convenience during maha sale offers at big bazaar Cumulative Percent 26.0 70.0 100.0

Frequency Yes No Not sure Total 26 44 30 100

Percent 26.0 44.0 30.0 100.0

Valid Percent 26.0 44.0 30.0 100.0

Convenience during maha sale offers at big bazaarYes Not sure

No

FINDING-44% of people do not feel any discomfort while shopping during Maha saving offers, while 26 %feel discomfort and 30%are not sure about it.

18. Recognition of tag line of Big Bazaar Valid Percent 60.0 40.0 100.0

Frequency Correct Not correct Total 60 40 100

Percent 60.0 40.0 100.0

Cumulative Percent 60.0 100.0

Recognition of tag line of Big Bazaar60 50 Frequency 40 30 20 10 0 Correct Not correct

FINDING-The picture is as clear as crystal, maximum people are able to recognize the tag line of Big Bazaar ,so its brand recognition is high.

DEMOGRAPHICS 19. Gender of respondents Frequency Male Female Total 43 57 100 Percent 43.0 57.0 100.0 Valid Percent 43.0 57.0 100.0 Cumulative Percent 43.0 100.0

Gender of respondents60 50 Frequency 40 30 20 10 0 Male Female

FINDING-Out of total respondents 57% were females and 43%were males.

20. Age group of respondents Cumulative Percent 77.0 95.0 100.0

Frequency 16- 25 years 25- 35 years 35 above Total 77 18 5 100

Percent 77.0 18.0 5.0 100.0

Valid Percent 77.0 18.0 5.0 100.0

Age group of respondents25- 35 years 35 above

16- 25 years

FINDING-More than 75% of people belonged to the age group of 16-25 years during survey.

21. Occupation of respondents Cumulative Percent 61.0 65.0 97.0 100.0

Frequency Student Businessman Serviceman Others Total 61 4 32 3 100

Percent 61.0 4.0 32.0 3.0 100.0

Valid Percent 61.0 4.0 32.0 3.0 100.0

Occupation of respondents70 60 Frequency 50 40 30 20 10 0 Student Businessman Serviceman Others

FINDING-Out of 100 respondents 61% were students, 32%belonged to service class, 4% and 3% belonged to business and other classes respectively.

FINDINGS1Maximum people that is 40% like to visit market twice a week, 27 % of the people prefer to visit monthly, 23% of people visit fortnightly and very little percentage that is 10% like to visit daily to the market. 2Sales promotion is very effective tool to entice people for shopping as great number of people that is more than 50% agree that they like to shop during various sales promotions 3Among the various sales promotions offered by the Big Bazaar discount sales is the most preferred sales promotion by the customers. Around more than 50%of the people like to shop during discount sales. 4Around 80% of people visit to Big Bazaar out of the 100 people surveyed. 5Maximum people visit sometimes to big bazaar, that less than monthly though the difference between the people who visit monthly and who visit sometimes is very insignificant. 6Among all the attributes of big bazaar only sales promotion has proved to be significant that is greater than .05 therefore the hypothesis taken that sales promotion influences the sales of the Big Bazaar is correct. 7Among the 100 respondents 71% were not able to recall its latest largest advertising campaign, which means that Big Bazaar is very weak at its advertising, it has to increase its reach through all kinds of media not only during its sales promotion campaigns but also through out the year. 8Out of people who dont visit to Big Bazaar that is 19 out of 100 only one person was able to recall its promotional campaign ,which means it is not at all able to influence non visitors of Big Bazaar through its advertising. 9Even out of people who visit Big Bazaar they were also not able to recall its latest advertising campaign so it implies that people visiting Big Bazaar are due to other reasons but not advertising 10About three-fourth people know the colour of its logo, so its brand recognition is high 1144% of people do not feel any discomfort while shopping during maha saving offers, while 26 %feel discomfort and 30%are not sure about it. 12The picture is as clear as crystal ,maximum people are able to recognize the tag line of Big Bazaar ,so its brand recognition is high. 13Big Bazaar is the most preferred destination as compared to its competitor

RECOMMENDATIONS & LIMITATIONSRecommendations1Big Bazaar should increase its aisle area for more convenient shopping to its customers 2It should improve its ambience as its closest competitors are having edge over it on this parameter. 3Big Bazaar should have more of cash counters so that people does not have to stand in long queue in order to get billing. 4Big Bazaar should work on its advertising ,though it is known for its creative advertising but the message should reach to each of the target customer so should use more rigorous use of all types of media. 5It should change its Tagline which gives the same message but is still easily distinguishable ,as most of its competitors are having almost similar tag lines that creates jargon for customer. 6It can convert shopping in to a great experience by playing some good music. 7Big Bazaar has to improve its quality of products specially in apparels.

Limitations1Time was the major constraint ,which prevented me to put in more effort. 2Some people left few questions unanswered. 3Some of the respondents were not ready to fill the questionnaire. 4Not all the respondents were cooperative thus it was difficult to convince them for filling up the questionnaire. 5Some of the respondents might have got biased while filling up the questionnaire.

6I made my best efforts in conducting the research but might have lacked somewhere because of lack of expertise in conducting such survey based researches.

LEARNINGS & CONCLUSOINSLearningsPROFESSIONAL LEARNINGS1Learnt to operate statistical tool SPSS. 2Learnt the process of research with the help of questionnaire practically. 3Learnt how to interact at the corporate level PERSONAL LEARNINGS1Improved at my communication skills after interacting with different sets of people. 2Helped me to develop and maintain cordial relationships. 3Infused me with more confidence. 4Learnt how to remain patient during work.

ConclusionsBig Bazaar is the most preferred place for shopping by all the customers, its recall and recognition level is high .Sales promotion is the only factor that is influencing its sales ,it has to really work hard at its advertising campaigns ,there should be consistency in advertising and should not be only during its sales promotion campaigns. It stands far ahead from its competitors but to remain in competition it has to really improve in its services .As we know that now the international retail giants like Wal-mart and Carrefour are coming to India and will be a great threat to it, so it has to really work hard.

BIBLIOGRAPHYWEB LINKS1http://www.media4exchange.com/ 2http://www.wark.com/ 3http://www.ibef.org/ 4http://www.economicstimes.com/ 5http://www.bigbazaar.com/ 6http://www.etretailbiz.com/ 7http://www.magportal.com/ 8http://www.retailindustry.about.com/ 9http://www.adpunch.com/ 10http://www.hindubusinessline.com/ BOOKS REFERED1 Belch. E. George and Belch. A. Michael, Advertising and Promotion Sixth Edition, Tata Mcgraw Hill. 2 Kotler Philip, Marketing management Eleventh Edition, Pearson Education. 3Beri G.C., Marketing Research Third Edition, Tata Mcgraw Hill.

ANNEXUREQuestionnaire on Advertising and Sales promotion of Big bazaar Date------------Q. No.-------------Centre------------Non -Users Dear Sir /Madam We are doing a brief survey to find the effect of Advertising and Sales promotion on sales of Big Bazaar .We would be grateful if you spare few minutes and participate in it. Thank you for your cooperation.

1.How often do you visit market for shopping? Daily Twice a week Fortnightly Monthly

2.You like to shop during various sales promotion offers Highly agree Agree Not sure Disagree Highly Disagree

3.Which type of Sales promotion offers you find most attractive? Discount sales Buy 1 get 1 free

Free gifts Exchange offers Loyalty Programe Games and Contests Others, Specify__________________________________ Users 4.Do you visit Big Bazaar for shopping? Yes No

If yes then how often? Weekly Fortnightly Monthly Sometimes

5.What are the things that induce you for shopping in Big Bazaar? Rank according to preference on scale of 1 to 5 (1= Very Poor, 5= Very Good) ATTRIBUTES LOW PRICE SALES PROMOTION OFFERS QUALITY IN AMBIENCE INNOVATIVE ADVERTISING ESSENCE OF INDIAN NESS CONVINIENCE IN SHOPPING 1 2 3 4 5

6.Can you recall the biggest advertising campaign of Big Bazaar?

Yes

No

If yes then specify _______________________________________ 7.Given a choice for shopping ,where would you like to go? Rank according to preference on scale of 1 to 5 (1= Very Poor, 5= Very Good) BIG BAZAAR SPENCER SUBHIKSHA SALASAR VISHAL MEGA MART

8.What is combination of colors in logo of Big Bazaar? Red and White Blue and Green Orange and Blue Black and White

9.Do you feel the same comfort while shopping in Big Bazaar even during the MAHA SALE OFFERS also? Yes No Not sure

10.What is the Tag line of Big Bazaar? ______________________________________ 11.Can you suggest something that Big Bazaar can do to improve its services? ____________________________________________________________

___________________________________________________________ DEMOGRAPHICS Name ______________________ GenderMale Age Group16-25 Years Occupation Student Business Service Others 25-35 Years 35-above Female

Income (per annum) Less than 2.5 lakhs 2.5- 4.5 Lakhs More than 4.5