Retail is India

7/30/2019 Retail is India

1/33

Retail is Indias largest industry, accounting for over 10 percent of

the countrys GDP and around 8 percent 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 favourable 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 behaviour, 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 average age

of 24 years, nuclear families in urban areas, along with increasingworking-women population and emerging opportunities in the

services sector are going to be the key growth drivers of the

organized retail sector in India.

Some Key Facts:

Retail is Indias largest industry accounting for over 10 percent

of the countrys GDP and around 8 percent of the employment

The market size of Indian retail industry is about US $312

billion.

Indias Consumption Cosmos

During the past decade, Private Final Consumption Expenditure has

been the key driver of economic growth in India.


2/33

The $350 Billion Consumption spending provides the single biggestbusiness opportunity in India and is divided into some keycategories led by food, fashion and home products.

Company Profile

Mr Kishore BiyaniCEO, Future Group

Pantaloon Retail (India) Limited is Indias leading retailer thatoperates multiple retail formats in both the value and lifestylesegment of the Indian consumer market. Headquartered in Mumbai,the company operates over 12 million square feet of retail space,has over 1000 stores across 71 cities in India and employs over

35,000 people.

The companys leading formats include Pantaloons, a chain offashion outlets, Big Bazaar, a uniquely Indian hypermarket chain,Food Bazaar, a supermarket chain, blends the look, touch and feel ofIndian bazaars with aspects of modern retail like choice, convenienceand quality and Central, a chain of seamless destination malls. Someof its other formats include Depot, Shoe Factory, Brand Factory,Blue Sky, Fashion Station, Mobile Bazaar and Star Sitara (Beautyclinic). The company also operates an online portal,Futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited,operates Home Town, a large-format home solutions store, sellinghome furniture products and E-Zone focused on catering to theconsumer electronics segment.

Pantaloon Retail was awarded the International Retailer of theYear 2007, by the US-based National Retail Federation, the largestretail trade association and the Emerging Market Retailer of theYear 2007 at the World Retail Congress in Barcelona.

- 8-Pantaloon Retail is the flagship company of Future Group, a businessgroup catering to the entire Indian consumption space.

The groups subsidiary companies include, Home Solutions Retail


3/33

India Ltd, Pantaloon Industries Ltd, Galaxy Entertainment and IndusLeague Clothing.

CORPORATE GOVERNANCE REPORTCorporate Governance indicates transparency, accountability and

reliability on any organisation.

One of the core missions of the organisation is to achieve excellencein all spheres, be it profitability, growth in market share, superiorquality of products and services to the satisfaction of the stakeholdersthrough an efficient and effective code of governance.

We aim at providing fairness, clarity and transparency in all ourdealings and increasing the value of all stakeholders of the Company.

- 9-Future Group

Future Group, led by its founder and Group CEO, Mr. KishoreBiyani, is one of Indias leading business houses with multiplebusinesses spanning across the consumption space. While retailforms the core business activity of Future Group, group subsidiariesare present in consumer finance, capital, insurance, leisure andentertainment, brand development, retail real estate development,retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operatesover 12 million square feet of retail space in 71 cities and towns and65 rural locations across India. Headquartered in Mumbai (Bombay),Pantaloon Retail employs around 35,000 people and is listed on theIndian stock exchanges. The company follows a multi-format retail

strategy that captures almost the entire consumption basket of Indiancustomers. In the lifestyle segment, the group operates Pantaloons, afashion retail chain and Central, a chain of seamless malls. In thevalue segment, its marquee brand, Big Bazaar is a hypermarketformat that combines the look, touch and feel of Indian bazaars withthe choice and convenience of modern retail.

- 10 -In 2008, Big Bazaar opened its 100th store, marking the fastest ever


4/33

organic expansion of a hypermarket. The first set of Big Bazaarstores opened in 2001 in Kolkata, Hyderabad and Bangalore.

The groups speciality retail formats include, books and music chain,Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone,

home improvement chain, Home Town and rural retail chain,Aadhar, among others. It also operates popular shopping portal,futurebazaar.com.

Future Capital Holdings, the groups financial arm providesinvestment advisory to assets worth over $1 billion that are beinginvested in consumer brands and companies, real estate, hotels andlogistics. It also operates a consumer finance arm with branches in150 locations.

Other group companies include, Future Generali, the groupsinsurance venture in partnership with Italys Generali Group, FutureBrands, a brand development and IPR company, Future Logistics,providing logistics and distribution solutions to group companies andbusiness partners and Future Media, a retail media initiative.The groups presence in Leisure & Entertainment segment is ledthrough, Mumbai-based listed company Galaxy EntertainmentLimited. Galaxy leading leisure chains, Sports Bar and Bowling Co.

and family entertainment centres, F123. Through its partnercompany, Blue Foods the group operates around 100 restaurants andfood courts through brands like Bombay Blues, Spaghetti Kitchen,Noodle Bar, The Spoon, Copper Chimney and Gelato.

Future Groups joint venture partners include, US-based stationeryproducts retailer, Staples and Middle East-based AxiomCommunications.

Future Group believes in developing strong insights on Indianconsumers and building businesses based on Indian ideas, asespoused in the groups core value of Indianness. The groups

corporate credo is, Rewrite rules, Retain values.

CONSUMPTION COSMOS

The retail formats are geared to capture Consumption Spending in keycategories in both value and lifestyle segment. And specialised businesses


5/33

backed by capital and investments in developing the necessary consumptioninfrastructure is helping build a consumption ecosystem.

This empowers Pantaloon Retail to build a comprehensive business model thatcan capture a dominant share of the single biggest business opportunity inIndia - the consumption space.

Board of Directors

Mr. Kishore Biyani

Managing Director

Mr. Gopikishan Biyani

Wholetime Director

Mr. Rakesh Biyani

Wholetime Director

Mr. Shailesh Haribhakti

Director

Mr. S. Doreswamy

Director

Dr. Darlie Koshy

Director

Mr. Anil Harish

Director

Ms. Bala Deshpande

Director


6/33

Mr. Vijay Kumar Chopra

Director (Appointed w.e.f. 24-07-2008)

Organization Profile

Nobody Sells Cheaper and Better

Big Bazaar is a chain of department stores in India currently with 100outlets.It is owned by Pantaloon Retail India Ltd, Future Group. It works on the sameeconomy model as Wal-Mart and has been successful in many Indian citiesand small towns. The idea was pioneered by entrepreneur Mr. Kishore Biyani,the CEO of Future Group. Currently Big Bazaar stores are located only inIndia. It is the fastest growing chain of department stores and aims athaving350 stores by 2010.

Big Bazaar has democratized shopping in India and is so much more than ahypermarket. Here you will find over 170,000 products under one roof

thatcater to every need of a family, making Big Bazaar Indias favourite shoppingdestination.

At Big Bazaar, you will get the best products at the best pricesthis is ourguarantee. From apparel to general merchandise like plastics, homefurnishings, utensils, crockery, cutlery, sports goods, car accessories,booksand music, computer accessories and many more. Big Bazaar is thedestination 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 strengthof fashion, Big Bazaar has created a strong value-for-money proposition forits


7/33

customers. This highlights the uniqueness of Big Bazaar as compared totraditional supermarkets, which principally revolve around food, groceriesandgeneral merchandise.

Big Bazaar has clearly emerged as the favourite shopping destination formillions of its customers, across the country, its success is a truetestament tothe emotional bonding it has established with the Indian customer , onaccountof its value offerings, inspirational appeal and service levels. We believeBigBazaar is a true pan-Indian model that can enter into most towns in Indiaanddemocratize shopping everywhere.

25, 26 and 27 January, 2009... Indias Sabse Sasta Din

The acceptance and loyalty that Big Bazaar has garnered over the years waswell evident on 26 January 2009.

On the day India celebrates its Republic Day; the company honoured theconsumer by calling it the Maha Savings Day. Shoppers at all Big Bazaar andFood Bazaar outlets across the country were offered products at prices neverheard before in the history of shopping.

The offers were spread across categories from electronics to utensils, fromapparel to furniture and food. This event received tremendous response fromtheregular and an entirely new set of shoppers, which resulted in nearly 2

millionpeople visiting the stores on that day. And most stores were able to postrecordsales for a single day.

Company History


8/33

1987 Company incorporated as ManzWear Private Limited. Launch ofPantaloons trouser, Indias first formal trouser brand.

1991 Launch of BARE, the Indian jeans brand.

1992 Initial public offer (IPO) was made in the month of May.

1994 The Pantaloon Shoppe exclusive menswear store in franchiseeformat launched across the nation. The company starts thedistribution of branded garments through multi-brand retail

outletsacross the nation.

1995 John Miller Formal shirt brand launched.

1997 Company enters modern retail with the launch of the first 8000

square feet store, Pantaloons in Kolkata.

2001 Three Big Bazaar stores launched within a span of 22 days inKolkata, Bangalore and Hyderabad.

2002 Food Bazaar, the supermarket chain is launched.

2004 Central - Indias first seamless mall is launched in Bangalore.

2005 Group moves beyond retail, acquires stakes in Galaxy Entertainment,Indus League Clothing and Planet Retail.

Sets up Indias first real estate investment fund Kshitij to build achain of shopping malls.

2006 Future Capital Holdings, the companys financial is formed to

manage over $1.5 billion in real estate, private equity and retailinfrastructure funds. Plans forays into retailing of consumer financeproducts.

Home Town, a home building and improvement products retail chainis launched along with consumer durables format, Ezone andfurniture chain, Furniture Bazaar.


9/33

Future Group enters into joint venture agreements to launchinsurance products with Italian insurance major,

Generali.Forms joint ventures with US office stationery retailer, Staples.

2007 Future Group crosses $1 billion turnover

mark.Specialised companies in retail media, logistics, IPR and branddevelopment and retail-led technology services become operational.

Pantaloon Retail wins the International Retailer of the Year at US-

- 19 -based National Retail Federation convention in New York and

Emerging Retailer of the Year award at the World Retail Congressheld in Barcelona.

Futurebazaar.com becomes Indias most popular shopping portal.

2008 Future Capital Holdings becomes the second group company to makea successful Initial Public Offering in the Indian capital markets.

Big Bazaar crosses the 100-store mark, marking one of the fastestever expansion of a hypermarket format anywhere in the world.

Total operational retail space crosses 10 million square feet mark.Future Group acquires rural retail chain, Aadhar present in 65 rurallocations.

- 20 -Future Groups Vision

To Deliver Everything, Everywhere, Every time, to Every Indian

Customer in the most profitable manner.

One of the core values at Future Group is, India ness and itscorporate credo is Rewrite rules, Retain values.

Future Groups Mission:


10/33

We share the vision and belief that our customers and

stakeholders shall be served only by creating and executing futurescenarios in the consumption space leading to economicdevelopment.

We will be the trendsetters in evolving delivery formats, creating

retail realty, making consumption affordable for all customersegments for classes and masses.

We shall infuse Indian brands with confidence and renewedambition.

We shall be efficient and, cost-conscious and committed to qualityin whatever we do.

We shall ensure that out positive attitude, sincerity, humility andunited determination shall be the driving force to make ussuccessful.

- 21 -Core Values

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble inour conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge andinformation.

Valuing and Nurturing Relationships: to build long termrelationships.

Simplicity & Positivity: Simplicity and Positivity in our thought,business and work.

Adaptability: to be flexible and adaptable, to meet new challenges.

Flow: to respect and understand the universal laws of nature.

Future PlansThe Company would continue to pursue its aggressive growth tostrengthen its position as a leading player in the consumption spacein India, with an aim to capture increasing share of the consumers

wallet. The Company would continue with its expansion plans andwould continue to increase its presence on a pan-India basis byopening more retail outlets in tier 2 and tier 3 cities and by furtherstrengthening its position in key metro cities.

The Company has planned to increase its operating retail spacefrom around 8 million square feet currently to around 12 millionsquare feet by FY08-09. The various subsidiary companies of the


11/33

Company, which have been created to cater to various consumptioncategories, are currently in initial set-up phase. Most of them willcome into their own, pursuing aggressive growth plans to achievescale and garner increasing market share. The Company will also beable to unlock value out of these businesses by listing thesesubsidiary companies, and partnering with strategic partners in

them, at an appropriate time.

The Company, operating in the consumption space, has added ITservices and education to its portfolio of businesses, apart from theexisting consumer finance, insurance, media, logistics and brandbusinesses. All these businesses will help in capitalizing on thesynergies with the retail business to further enhance shareholderswealth.Different products dealt in Big Bazaara) Depot b) NBD (New Business

Development)

1) General books1) Watches

2) Office stationary2) Fashion Jewellery

3) Children stationary3) Sunglasses

4) Film VCDs & DVD4) Auto accessories

5) Car audio systems

c) Gold Bazaar: d) Mobile Bazaar:

Navras Gold Jewellery 1) All kinds of mobile handsetsranging from Rs 1000 to Rs

(This is a separate unit not related25000 of different companies.

to Big Bazaar they share profits onpercentage basis). 2) All mobile accessories

3) All major prepaid sim cards

4) All post paid connections

5) Cordless phones & landlinephones.


12/33

- 26 -

e) Star Sitara: f) Shringar:

1) Cosmetics 1) Bangles

2) Fragrances 2) Jewellery sets

3) Herbals 3) Bracelets

4) Pharmaceuticals 4) Hair Accessories

5) Bindies

6) ChinsPlastics, Utensils, Crockery(PUC)

h) Utensils:g) Plastics:

1) Plates, Bowls, Glasses1) Buckets

2) Non stick Cookwares2) Casseroles

3) Kitchen Tools3) Containers

4) Tiffin Boxes4) Boxes

5) Flasks

6) Bowls

7) Jugs & sippers

8) Bottles & Mugs

- 27 -i) Crockery: j) Luggage:

1) Crockery cutlery 1) Travel bags

2) Table Materials /Napkins 2) Trolleys


13/33

3) Dinner sets 3) School & College Bags

4) Wine, Juice Glasses 4) Ladies purse & bags

5) Suitcase

Apparels Departmenta) Ladies Wear: b) Mens Wear:

1) Sarees 1) Formal Shirts & Pants

2) Dress Materials 2) Casual Shirts & Pants

3) Under garments 3) Party Wears

4) Nightwear 4) Fabrics [cut pieces]

5) Western wears 5) Other Accessories

6) Suits & Blazers

7) Levis Signature Garments

8) Ties

9) Jeans Pants

10)Belts, Handkerchiefs

- 28 -Kids Department:

c) Infants Section: d) Boys Section:

1) Shirts 1) T-shirts, trousers, jeans

2) Baniyans 2) Cotton shirts, Codraw pants

3) Jhabas 3) Ethnic wears

4) Vests 4) Co-ordinates


14/33

5) Bibs feedings 5) Rain coats

6) Bed items

7) Baba suits, Frocks

8) Diapers, Pampers

9) Other baby accessories

- 29 -a) Girls Section: f) Toys Department:

1) Cotton Frocks 1) Soft Toys

2) Ethnic wears 2) Board games

3) Co-ordinates 3) Dolls

4) Western wears 4) Educational toys

5) Sweaters 5) Remote Cars , bikes

6) Sports items: Cricket bats,balls, badminton & tennisrackets, hockey bats etc

7) Cycles

8) Carrom Boarda) Footwear Department: b) Furniture Bazaar:

1) Sports shoes 1) Dining Table

2) Casual shoes 2) Bedroom Accessories

3) Formal shoes 3) Hall Accessories (Sofa sets,Chairs, Tables etc)

4) Mens sandals 4) Mattresses5) Ladies sandals

5) Computer Table6) Ladies casuals

6) Dressing Table7) Ladies Fancy slippers

7) Wardrobe, Almirah etc8) Children shoes


15/33


16/33

2) Ready to eat

3) Corn flakes, Chips

4) Soups, Bread items, Pickle

5) Instant mixes

6) Spreadse) Confectionaries:

1) All kinds of Chocolates andConfectionaries.

- 31 -2) Cakes and other sweetsHome Care:

1) Phenyl, Detergents etc1) Washing powder etc2) Dish wash, Tissue papers3) Scratch, Shoe cases, Fresh wrap

Electronic Bazaar

1) Televisions, DVD Players2) Home Theatre Systems, Audio

Systems3) Refrigerators4) Washing Machines5) Microwave Owen6) Mixers, Irons & Grinders7) Computers, Laptops, Printers &

- 32 -Computer accessories8) Juicers etc

Famous Brand Of Big Bazaar:Big Bazaar has gradually introduced private labels in fashion over the lastfew years. Every year, new, private labels are introduced to increase theirshare over other brands. These are known as In House brands which are exclusively promoted by Big Bazaar in its stores.


17/33

It is very important to promote and sell these brands aggressively, sincetheycontribute to higher margins thereby contributing heavily to the bottom line.

Knighthood

It is the mens formalwear brand with arrange that includes formal shirts,trousers, suits, blazers and basic mens accessories like ties andhandkerchiefs.

- 33 -Indias cool answer to international brands is positioned for the 20-35 yearage group. It targets both men and ladies and the range includes designerdenims, casuals, street-wear.

Sports

This is a unisex sportswear range for the age group of 20-40 years.

Shatranj

The mens ethnic wear range consists of kurtas, kurta pyjamas sets andsherwani sets.

Shyla

True to its tagline what women want, Shyla offers a complete range offormal/ semi-casual line of ladies tops, trousers, skirts, etc.

Srishti

The complete ethnic wear range offering a range of traditional designs forladies encompasses both salwar kameez sets and mix & match/ fusion wear.


18/33

Pink & Blue

The kids brand range created to celebrate the spirit of childhood, has the

bluerange for boys and pink for girls. There is an infant line also available aswell.Pink & Blue covers the entire apparel needs of kids across t-shirts,shirts,jeans, trousers, shorts, dresses and ethnic-wear/ occasion-wear.

STUDIO NYX

It is a range of mens party wear.

- 35 -CTEE

Mens T- shirts

Business Description:

Pantaloon Retail (India) Ltd. The companys principal activity is to operatechain retail stores in names of Big Bazaar, Food Bazaar, Central andPantaloons. The Big Bazaar is the discount store, which offers a wide rangeof products under one roof. The products include apparels and non-apparelssuch as utensils, sports goods and footwear. The company also has its

- 36 -presence into gold retailing by launching Gold Bazaar. The companys Food

Bazaar provides a range of food and grocery products ranging from freshfruits and vegetables, staples, FMCG products and ready to cook products.The Central offers a chain of stores including books and music stores,globalbrands in fashion, sports and lifestyle accessories, grocery store andrestaurants. The Pantaloon retail stores focus largely on apparels andaccessories.


19/33

Departmental Managers:There are 28 departments in this store like Electronic dept, Depot dept,Mobile Bazaar, Star Sitara dept, Plastic, Utensils & Crockery (PUC)Dept,Ladies Dept, Mens Dept, Furniture Dept, Footwear Dept, Home Decor Deptetc. Each department will be assigned with targets which have to be achieved

within the assigned period that may be of daily, weekly, monthly and yearly.

Each department has a Department Manager (DM) & Assist DM. Their job isconcerned mainly with sales. They look after customers orders delivery,

postsale service if any etc. All Dept managers, ADM, team members work undercoordination and cooperation.

Chapter-5

Functional Departments:

1.Human Resource Department

The HR department of Big Bazaar is very dynamic. Employees are the biggeststrength and asset of any organization and the HR dept realises this verywell.

This is very evident from the way the HR department handles all itsemployees. They take utmost care to select, train, motivate and retain alltheemployees. They have continuous developmental programmes for all theemployees.

Currently Big Bazaar Banashankri is employing 220 full time and 60 part timeemployees. There are two shifts for the employees. The first shift employeesarrive at 10AM in the morning and leave at 7.30 in the evening, while thesecond shift employees report at 12.30 in the afternoon and leave at the timeofStore closing (10pm).

Sources ofRecruitment

The following are the main sources through which Big Bazaar recruits its


20/33

employees.

a) Consultancy Services:

For top level management, employees are recruited through privateconsultants. They are usually appointed as Departmental Managers.

b) Walk-ins :

This is the main source through which Big Bazaar recruits its employees.People seeking job usually themselves approach the HR department for jobvacancy. Employees usually selected from this source are appointed at theentry level as team members.

c) Employee Referrals:

This is the other main source through which employees are selected.

Candidates who have given their previous employer as referrals are firstinterviewed and from their previous employer, opinion is taken about theirbehaviour and performance in the job. If they receive a positive opinionfromtheir previous employer they are selected.

d) Campus Recruitment:

Young people bring new ideas and fresh enthusiasm. Therefore Big Bazaarvisits some of the reputed educational institutions to hire some of the mosttalented and promising students as its employees.

Selection Procedure

The following is the selection procedure that the HR department practices tohire its employees.

i. Interview:

For entry level jobs, the candidates are interviewed by a HR person.

They are asked a few basis questions about their education, previous workexperience if any, languages known etc. This is done to evaluate the


21/33

candidates ability to communicate freely and also other skills.

ii. Psychometric Tests:

For higher and top level jobs, candidates are asked to answer a fewquestions

which basically test their sharpness, analytical ability, ability tohandle stress,

presence of mind etc. This is done as Managers are required to work understress all the time and still maintain a cool head to make some vital

decisions.

iii. Group Discussion:

In campus recruitment students are involved in a Group Discussion,where

they will be given a topic on which the group has to deliberate, discussand

arrive at a solution or a decision which is accepted by the whole group.

Along with the G D they are also given a written aptitude test.

Finally a formal interview will be conducted to assess the overall skillsof the

student.

Induction:

New employees selected will be given a 13 day induction and trainingprogram. They will be given information about the companys business,different departments etc. They will be informed of their roles, duties

andresponsibilities. They will also be informed about the HR policies and

rules of

the company.

The new employees will be on probation for a period of 6 months.After this period the HR period along with the department manager will

review


22/33

the performance of the employee. If the employees performance is good andencouraging, the employees services will be confirmed.

Compensation & Rewards:

The employees are rewarded suitably with attractive pay packages.

The salary of an employee includes basic pay. HRA, special allowance,PF,ESI, Mediclaim etc.

Annual bonus will be given at the time of Diwali.

The employees and their dependents are also entitled for medical treatment inrecognised hospitals with cashless hospitalisation with whom the company hastie-ups.

If a hospital is not recognised, the amount spent by the employee will be

reimbursed.

Along with these all the employees are given a card known as Employee

Discount card (EDC) through which they can buy any product at Big Bazaar

at a special discount of 20-30 %.

Leaves and other rules:

An employee during his probationary period is entitled for 7 days of leave.A confirmed employee is entitled for 30 days of leave in a year.There is only one type of leave the employees can take which is known as AllPurpose Leave (APL).

All the employees will be given identity cards which they have to wear andalso swipe while at the time of entering and leaving the Store.

- 41 -Performance Appraisal:

The HR department conducts performance appraisal of all the employeesannually in the month of April.Based on their performance increments will be given in their pay.In addition to this if an employee achieves or exceeds the target given toalongwith their team members will be provided with attractive cash and otherincentives.


23/33

Training & Development:Future group has its own training division for all its employees, known asFuture Learning & Development Limited (FLDL).All the employees are given training for 20 days in a year spread overdifferentperiods.

Gurukul which is a part of FLDL gives training to all the employees onvarious skills like team work, dedication discipline improving customerserviceetc to make them more knowledgeable and productive.

- 42 -Work Culture at Big Bazaar:

At Pantaloon Retail, Empowerment is what you acquire and Freedom at Workis what you get. We believe our most valuable assets are our People. Young inspirit, adventurous in action, with an average age of 27 years, our skilled&qualified professionals work in an environment where change is the onlyconstant.

Powered by the desire to create path-breaking practices and held together byvalues, work in this people intensive industry is driven by softer issues. Inourworld, making a difference to Customers lives is a Passion and performance

isthe key that makes it possible. Out of the Box thinking has become a way oflife at Pantaloon Retail and living with the change, ahabit.Leadership is a value that is followed by one and all at Pantaloon Retail.Leadership is the quality that motivates us to never stop learning,stretching to

reach the next challenge, knowing that we will be rewarded along the way. In

- 43 -the quest of creating an Indian model of retailing, Pantaloon Retail hastakeninitiatives to launch many retail formats that have come to serve as abenchmark in the industry. Believing in leadership has given us the optimismto change and be successful at it. We do not predict the future, but createit.


24/33

At Pantaloon Retail you will get an opportunity to handle multipleresponsibilities, and therein, the grooming to play a larger role in thefuture.

Work is a unique mix of preserving our core Indian values and yet providingcustomers with a service, on par with internationalstandards.

At Pantaloon you will work with some of the brightest people from differentspheres of industry. We believe its a place where you can live your dreamsand pursue a career that reflects your skills and passions.

- 44 -2 . Finance Department

Finance is the life blood of any business. The South Zone Head office locatedat Jayanagar, performs most of the financial functions and therefore theFinance department of Big Bazaar, Banashankri performs a few basicfunctions, such as preparing the Stores Incomeand Expenditure Statementgiving full particulars of all items.

It also prepares the budget for expenditure at various levels on differentitems.

This department is also responsible for deciding and giving the weekly,monthly and yearly sales targets and the margins for all the departmentsseparately.

The Finance department is also responsible for collecting and depositing thecash received in the companys bank account daily.

Review of Performance:

The company crossed $1 billion turnover mark during the year under review,having recorded a robust growth in both the topline as well as in bottomline.

- 45 -Income from operations went up from Rs.3236.74 Crores in FY06-07 toRs.5048.91 Crores in FY07-08, recording a growth of 55.98 percent.PBDITstood at Rs.464.29 Crores in FY07-08, an increase of 113 percent over thepreceding year. PAT for FY07-08 was Rs.125.97 Crores. This amounts to an


25/33

increase of 111 percent over the preceding year as the Net Profit ofRs.119.99Crores in FY06-07 included an extraordinary income, of profit from sale ofinvestments, of Rs.88.87 Crores.

The Company increased its retail presence from around 5 million square feet

in42 cities to approximately 8 million square feet in 63 cities during FY07-08.

Marketing Department

Marketing concept is a customer orientation backed by integrated marketingaimed at generating customer satisfaction as the key to satisfyingorganizational goals. For a firm in order to implement the marketing conceptithas to focus its attention on the consumer, ascertain his/her needs, discussandwants before

Every Brand appeals to individual customers in different ways. Good customerservice is the life blood of any business. Good customer service is all aboutattending to existing and potential customers. This maintaininggoodrelationship with the customers is the key to business success and hence theconcept relationship marketing.

Traditionally, marketers have located their target market segments, presentedtheir offer, and made the sales. It's always been a single step process.

Relationship marketing looks at customers and clients over a longer term. Ittakes into account the lifetime value of a customer.

Many experts think it costs anywhere from six to ten times as much, to find anew customer, than to sell to an existing one. With those financial realitiesinmind, the approach makes some sense, and some real dollars.

Relationship marketing is based on the idea that people prefer to do businesswith people who they know and like. After all, it's easier to buy from afriend,than from someone you've never heard of before. It's a matter of buildingtrust.


26/33

- 51 -

It's said that people need to hear an offer at least seven times before theybuy.That concept certainly works against the single step marketing method.

The Marketing department is responsible for marketing of Big Bazaarsproducts through different media like TV, radio, newspapers, banners,placardsetc.

The marketing department has to decide and identify the most effectivemedium to attract the customers to Big Bazaar thereby increasing the sales.

The department has to design creative and attractive advertisements throughwhich the companys products can be promoted to the customers.

The company has to visit different companies and has to enter in tie-ups forallits advertisement campaign.

The marketing department also consists of another separate department whichis known as Visual Merchandising.

Visual merchandising is an art by which a retailer makes the store talk toitscustomers. The colours, signage, lights, look and feel, everything is takenintoaccount. It is very important to figure out what is the story, the picture,the ideathat is being sold to the customers.

Another concept that was incorporated in Big Bazaar from the beginning wasthat of Category management as opposed to the brand merchandising practicethat is followed by many retailers. Category management is based on thebeliefthat a customer walks into a store looking for party shirt or a formal

trouser,rather than a particular brand. Therefore the store is designed according tothecategories like mens formal wear, womens western wear or a casual wear,

- 52 -etc. Within the organisation too, teams were divided according to thecategories that they managed, rather than the brands.


27/33

Big Bazaar wanted to have a complete bouquet of products in each category atdifferent price-points, design, fabric, size and colour. The objective was tocreate traffic drivers within the Store rather than make brands compete

witheach other. Focussing on categories also helped to achieve a level ofperfection

within the specific segments.

This department is responsible for the attractive product arrangement in theStore with respect to their nature. The basic function of this department isitdivides the Store into some departments based on the nature of the productandalso within the department it decides how the products should be arrangedkeeping in mind the customers taste. It also arranges the products to attractthecustomers and also ensure easy availability ofproducts.

- 53 -Customers enjoying their shopping experience

- 54 -4. LogisticsLogistics is a very important department of Big Bazaar. It is responsible forprocuring the stock of all the products of the different departments.

The logistics department receives the goods from the warehouse.

The Warehouse of Big Bazaar for the entire South zone is located at Hosakote,Karnataka.The logistics department receives the stock of different goods and verifiesthequantity and quality of the goods with the particulars given in the GoodsReceived Statement which it receives along with the stock.

Then it checks for any damage in the stock received. If there is no damage inthe stock, after recording it in the Stock Inward Register despatches thegoods to the respective department taking the signature of the DepartmentalManager.

On the other hand if there is a damage in the goods or if the goods do notmatch the details given in the Goods Received Statement, it enters in theStock


28/33

Outward Register and sends it back to the warehouse along with a GoodsReturned Note giving full information regarding the reason for returning backthe goods and the defect or damage in the goods.

The logistics department receives two truck loads of stock every day. It isthe

respective departmental Managers who place an order to the Zonal head officethrough e-mail for stock of goods when they feel that the stock has to bereplenished.

The logistics department works in complete coordination with all the otherdepartments to ensure that the stocks are received and maintained properly

- 55 -continuously for the smooth functioning of Big Bazaar and avoid anyinconvenience to the customers.

5. Sales Department

This department is responsible for the collection of sales amount i.e., cashsales. There are in all 25 cash counters in the Store. There is a HeadCashier towhom all the cahiers report and submit the total sales amount collectedthroughout the day by the cashiers. In addition to cash all leading creditanddebit cards are accepted at no extra charge. Also Big Bazaar vouchers andSodexho coupons are also accepted.

A cashier at the time of opening his billing counter will be given an openingbalance of Rs.1000. The cashier has to ensure that all the offers applicableonrespective products are given to the customer in his/ her bill. Also if anyfreeitems are given on some purchases, it should be informed to the customerclearly.

After the billing is done, the cashier has to pack the products neatly in aplastic

cover according to the customers needs.

At the time of closing the billing counter, the cashier has to give astatement ofcash, with all particulars of different denominations of cash, amountcollectedthrough credit cards, amount collected in debit cards, amount collected inSodexho coupons & Big Bazaar vouchers and also amount collected throughCredit Notes.


29/33

Wednesday Bazaar is a very important and popular event in Big Bazaar. EveryWednesday fabulous offers and great discounts are given on most of the

- 56 -products. Customers arrive in large numbers as they realise that it is onWednesday that products are offered at the lowest prices.

Recently Big Bazaar Banashankri celebrated its 8th anniversary. Big Bazaarcelebrated this occasion by having the 8th anniversary sale from 12-16thJuly.Good discounts and offers were provided on products to celebrate thisoccasionalong with the customers who were the prime reason for its success.

On Saturday and Sunday also the customer turnout is high, as it is on theweekends that most of the customers find time for shopping. They arrive alongwith their family to enjoy the shopping experience. Good discounts and offersare also provided to attract more number of customers.

Retailing is not just about selling productsit is about selling an idea.Whydo people in shop when they are bored or depressed? It is not just becausetheyhave the money to buy, but because they want to go through an experience. Itis very crucial in retailing to make customers relate to every product thatisbeing sold, as well as the Stores environment.

- 57 -6. Customer Service Desk (CSD)

As the name suggests this is the separate dept which mainly focuses oncustomer service like if a customer finds difficulty in finding any product,ifthere are any customer complaints, they are also looked into, any customerassistance etc. is also provided.

There is also an Exchange Counter where if a customer is dissatisfied orwantsto exchange the product he/ she has purchased for any reason , the customers


30/33

can exchange them within 7 days of their purchase.

When a customer brings a product for exchange, the product is first receivedand checked if it is used or deliberately damaged or tampered with. If it isin anacceptable condition, then the customer is issued a Credit Note for that

amount(products price). The customer can then purchase any product for that amountor just take back the money by encashing the credit note at a cash counter.Ifthe customer buys a product less than the amount in the credit note, thedifference amount will be returned to the customer and on the other hand if acustomer buys a product more than the amount in the credit note, the customerwill be asked to pay the difference amount.

This department is also responsible for announcing all the offers running inthestore on different products throughout the day. This dept also does giftwrapping for any product if the customer wants it at free of cost.

- 58 -The dept also collects customers opinion / feedback for continuousimprovement in their service.

The ultimate aim of this department is to help and satisfy the customer ineverypossible manner and makes the customers experience memorable.

7. Administration

The Store administration comes under the Store Manager. Its functions arestore maintenance, housekeeping, security etc.

The store maintenance is concerned with the proper running of the store inco-ordination with all the departments. It also has to ensure proper back up

power supply in times of powercuts.The Housekeeping is concerned with keeping all the departments of the Storeclean and neat all the time. Covers and other wastes should be properlycleaned and the floor is swept regularly to keep it clean.

The Security section is concerned with the security of the entire store.Securitydepartment keeps a vigilant check on all the people entering and departing at


31/33

the various entry and exit points in the store.

They also maintain all the registers like employees attendance register,

stockregister, visitors register etc. They check all customers bill before

letting

them out of the store.They ensure orderliness in the store and prevent shrinkage or pilferage ofgoods to minimise the loss arising out of it.

The housekeeping and security are outside agencies employed by the store on acontract basis to take care of the respective functions.

The Administration department also has a separate section known asInformation Technology. This department is responsible for the maintenanceof all the systems of the Store, all billing machines their functioningnetworking with the master machine etc. If there is any problem with themachine in any department in the store, then this department comes intofunction. This dept integrates all the systems in the store and properlymaintains all of them.

Chapter-6

SWOT Analysis:

Strengths:

Better understanding of customers helping the company to serve thembetter.

Vast range of products under one roof helping in attracting customer andtheir family to shop together and enjoy the experience.

Benefit of early entry into the retail industry.

Diversified business operating all over India in various retail formats.

Ability to get products from customers at discounted price due to thescale

of business.

Weaknesses:

High cost of operation due to large fixed costs.

Very thin margin.


32/33

- 60 -

High attrition rate of employees

Opportunities:

Lot of potential in the rural market.

Can enter into production of various products due to its in depthunderstanding of customers tastes and preferences.

Can expand the business in smaller cities as there is a lot of opportunity.

Threats:

High business risk involved.

Lot of competitors coming up to tap the market potential.

Margin of business reducing all the time.

Chapter-7:

Findings & Conclusions

1. Big Bazaar is undoubtedly the number one retailer in India. It hasbuilt a

very emotional and cordial relationship with its customers. It isalso very

intending to build long term relationship with all its stakeholderswhich

is very essential for a successful business venture.2. It is observed that the organisation hierarchy is professional as all

thedepartmental Managers directly report to the Store Manager who in

turnreports to the Zonal Head.

3. Big Bazaar, with 25 years of experience in the field of weavingfabrics,

is the leading Apparels and fashion design fabric company.

4. There exist a healthy and positive relationship between employees andmanagers.

5. The employees accept their responsibilities wholeheartedly, accept thatit is their responsibility to carry out a part of the activities of the


33/33

company and they will be held accountable for the quality of their work.6. It is found that more than 60% of employees are of the age group of

20-35. From this it reveals that company is having young and energeticworkforce who are very creative, enthusiastic and also very determinedto grow in their career and in turn helping the company to grow.

7. Working environment is good and also the various facilities provided

helps in motivating the employees.8. The company is reaching out to all the sections of the society as it is

creating a hypermarket where not only the rich people shop but also themiddle and the lower class customers come to enjoy the whole shoppingexperience.

Documents

Retail is India