Rm Project

Research Methodology in Commerce Factors Influencing Customer Behavior with Reference to Big Bazaar

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CHAPTER #1

INTRODUCTION

1.1. Introduction to Big Bazaar

Pantaloon Retail India Ltd (PRIL) has emerged as the leading retailer in India with its chain

of Pantaloon, Big Bazaar and Food Bazaar stores. With the right mix of management

capabilities, high growth product profile, well-developed strategy and extensive IT and

logistics capabilities, PRIL has ensured rapid growth. More importantly, while most

organized retailers are struggling to be in black, PRIL has demonstrated a consistent track

record of profitable growth.

Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and which

work on Wal-Mart type economies of scale. They have had considerable success in many

Indian cities and small towns. Big Bazaar provides quality items but at an affordable price.

It is a very innovative idea and this hypermarket has almost anything under one

roof….Apparel, Footwear, Toys, Household Appliances and more. The ambience and

customer care adds on to the shopping experience.


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1.2. Objectives of the study

Main objective of the study is to find out the buying behavior of the customers coming in to

Big Bazaar. There are some extensive objectives for the study which are listed below.

i. To determine the current status of Big Bazaar.

ii. To find out the customers response towards Big Bazaar.

iii. To study the satisfaction level of customers in different attributes of Big Bazaar.

1.3. Hypothesis

The ‘hypothesis’ is a formal affirmative statement predicting a single research outcome, a

tentative explanation of the relationship between two or more variables.

The buying behaviour of the consumers is positively influenced by the schemes and

incentives used by Big Bazaar.

1.4. Scope of Limitations

Preparation of a project report and concluding a research is a whole process which is

carried out in a number of steps. Therefore throughout the whole process of research there

are a number of difficulties encountered by researcher, at every step. In the present study

we may assume following limitation.

i. Data don’t represent entire population behavior;

ii. It is very difficult to measure perception by means of mathematical calculation;

iii. This research was done in Mumbai city only hence this; and


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iv. It was assumed that respondent have the knowledge of the choice that were given in

the questionnaire and respondent were compelled to choose only from given

alternatives.

The respondent view point on the study/questionnaire purely judgment and may be induced

by other reasons also.

1.5. Research Methodology

Technology and customers tastes and preferences play a vital role in today’s generation.

Research Methodology is a set of various methods to be followed to find out various

information regarding market strata of different products. Research Methodology is

required for every industrial service industries for getting acquire knowledge of their

products.

Sampling Size: The sampling size of the study is 30 users.

Data Collection:

Primary data – It is collected for the first time and original in name. During the course of

the data collection, the primary data was collected through direct communication with the

respondents by getting the questionnaire filled from them

Secondary data – the secondary data refers to the information or facts already collected and

published. It is the data collected and reported by some sources is accessed and used for the

study. The secondary data is already published data, which is available in:

1) Books, magazines, newspapers, periodicals;

2) Public records and statics, journals;

3) Various publications of the Central and State Government.


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CHAPTER #2

LITERATURE REVIEW

Big bazaar is the subsidiary of Future Group, Pantaloons Retail India ltd.

It is formed by the C.E.O of future group Mr. Kishore Biyani.

At present, the Future Group comprises various formats and brands like Pantaloons, F123,

Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart,

HomeTown and Central. The Big Bazaar has several stores located all over the India,

among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, and Mumbai is

those metro cities where the stores of Big Bazaars are located.

Big bazaar open its first store in Kolkota ,west Bengal, India in 2001 allowing people to

buy all the needed items under one roof and this idea became a big hit and as now can be

seen big bazaar captures the market opening more than 100 retail stores in all over India.


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CHAPTER #3

INTRODUCTION TO BIG BAZAAR

3.1. Company Research

PRIL has chalked out an aggressive expansion plan to increase its retail space to over

1,740,000 sq.ft. over the next two years. Space for additional 4 Pantaloon’s, 11Big Bazaars

and 2 Food Bazaar’s has already been finalized, and these would be Operational over the

next two years. PRIL aims to set up over 30 Food Bazaar’s and is scouting for appropriate

locations for the same.

After popularizing the concept of hypermarket in India, PRIL is now also setting up a new

format shopping mall in the country under the name ‘Central’. The format would be on the

lines of a Selfridges’ in London or a Central Mall in Bangkok. Two malls of 100,000 and

240,000 sq.ft. are being set up in Bangalore and Hyderabad respectively.


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Diversity of product range will ensure profitable volume growth

To achieve better return on retail space, PRIL uses certain product categories as margin

managers and certain product categories to generate traffic. The food and groceries

business will act as key volume growth driver while high share of apparel (which account

for over 80% sales in Pantaloon Stores and 40% in Big Bazaar) will enable PRIL to

maintain high margins. The management has demonstrated its ability to improve stock

turnovers in both the formats successfully, which has enabled significant margin

improvement.

3.2. Value chain and Competitive edge

PRIL has a completely integrated value chain in apparels from fabric manufacturing to

apparel manufacturing, branding, distribution to retailing. The company controls the total

value chain from yarn to apparel retailing and gives a competitive edge in terms of speed of

delivery; lower inventory carrying costs and better realizations. Also, large part of PRIL’s

apparel revenues comes from own private labels. PRIL has developed significant

competencies in apparel branding over a period of time and has developed own labels

(John Miller, Shrishti, Bare, Annabelle, AFL) in all the apparel product categories.

Worldwide, private labels give higher margin to retailers than the national brands.

Also growth of private labels is faster as retailer controls shelf space and visibility. Other

initiatives such as faster turnover of stocks by introducing 6 seasons in a year (against 2

earlier) has helped in bringing down inventory levels and at the same time providing wider

choice to customer and improving frequency of customer visits.


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3.3. Big Bazaar – Isse sasta aur accha kahin nahin!!

Big bazaar is the company’s foray into the world of hypermarket discount stores, the first

of its kind in India. Price and the wide array of products are the USP’s in Big Bazaar. Close

to two lakh products are available under one roof at prices lower by 2 to 60 per cent over

the corresponding market prices. The high quality of service, good ambience, implicit

guarantees and continuous discount programmes have helped in changing the face of the

Indian retailing industry. A leading foreign broking house compared the rush at Big Bazaar

to that of a local suburban train.

Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and which

work on Wal-Mart type economies of scale. They have had considerable success in many

Indian cities and small towns. Big Bazaar provides quality items but at an affordable price.

It is a very innovative idea and this hypermarket has almost anything under one

roof….Apparel, Footwear, Toys, Household Appliances and more. The ambience and

customer care adds on to the shopping experience.

3.4. Food Bazaar – Wholesale prices

Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and International

supermarket atmosphere with the objective of giving the customer all the advantages of

Quality, Range and Price associated with large format stores and also the comfort to See,

Touch and Feel the products. The company has recently launched an aggressive private

label programme with its own brands of tea, salt, spices, pulses, jams, ketchups etc. With


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unbeatable prices and vast variety (there are 42 varieties of rice on sale), Food Bazaar has

proved to be a hit with customers all over the country.

3.5. What is store for you in Big Bazaar?

1,70,000 products at 10-60% disount. At Big Bazaar, you will get: A wide range of

products at 6 – 60 % lower than the corresponding market price, coupled with an

international shopping experience.

Products available at Big Bazaar

Apparel and Accessories for Men, Women and Children.

Baby Accessories.

Cosmetics

Crockery

Dress Materials Suiting &

Shirting

Electrical Accessories

Electronics

Footwear

Toys

Home Textiles

Home Needs

Household Appliances

Household Plastics

Hardware

Home Decor

Luggage

Linens

Sarees

Stationery

Utensils &

Utilities


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3.6. Food Bazaar

Food Bazaar offers the Indian consumer the best of Western and Indian values. The

western values of convenience, cleanliness and hygiene are offered through pre packed

commodities and the Indian values of "See- Touch- Feel" are offered through the “Mandi”

atmosphere created by displaying staples out in the open, all at very economical and

affordable prices without any compromise on quality. This satisfies the Indian consumer

and comforts her before making her final buying decision. At other super markets, the

consumer is deprived of this factor.

Truly the Indian consumer now agrees with Food Bazaar: "Ab Ghar Chalaana kitna

Aasaan”. This positioning platform of Food Bazaar is evident from the higher discounts

and the wholesale price-points which is below MRP.

Food Bazaar represents the company’s entry into food retail and is targeted across all

classes of population. Food Bazaar replicates a local ‘mandi’, to provide the much

important ‘touch & feel’ factor which Indian housewives are used to in the local bazaar.

Food Bazaar has over 50,000 stock keeping units which cover grocery, FMCG products,

milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides fruits and

vegetables. All products are sold below MRP and discounts range between 2% to 20%.

Fruits and vegetables are sold at prices comparable to wholesale prices.


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CHAPTER # 4

BIG BAZAAR AT PHOENIX MILLS COMPOUND!

4.1 Pantaloon Retail opens Big Bazaars at Phoenix Mills stations in Mumbai

Pantaloon Retail (India) Limited, the country’s leading retailer, opens a BIG BAZAARS in

Mumbai. The BIG BAZAARS are located at the Phoenix Mill respectively. The national

tally of BIG BAZAAR is now at 70 taking the total tally of BIG BAZAAR in Mumbai and

suburban’s region. BIG BAZAAR, at phoenix has have FOOD BAZAARS within the

store.

BIG BAZAAR will provide shoppers with a completely new shopping experience and

make available -a range of products for every household need at never before prices

Shoppers for the first time will have the widest range of products in every segment –

Women’s Apparel, Men’s Apparel, Accessories like belts and bags, Cosmetics, Gold

Jewellery, Kids Wear, Stationary and Toys, Footwear, Plastics and Home Décor products,

Utensils & Home Appliances, Gift Articles, food and grocery items. Food Bazaar will offer

services like ‘Live Kitchen’ where customers can get vegetables cut and select gravies of

their choice, ‘Golden Harvest’ providing best quality grain, pulses & spices, ‘Ready to

cook’ and ‘Hungry Kya’ the ready to eat food sections. In addition, regular Food Bazaar

offerings of Grains and Provisions, Farm Fresh Fruits & Vegetables, Drinks & Beverages,

Dairy Products, Fabric Care products, Music Cassettes and CD’s, Chill Station, Home Care

Products, Accessories, Kitchen Linen.


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On the occasion of the launch, Mr. Kishore Biyani, Managing Director, Pantaloon Retail

(India) Ltd.

Living up to its motto of “Is se sasta aur accha kahin nahin", all products in BIG BAZAAR

will be available at prices lower than the MRP, often up to 60% discount. In addition to

this, various offers, discounts and promotions will be regularly held at the store. The

consumer will experience a new level of standard in price, convenience and comfort,

quality, quantity, and store service levels. BIG BAZAAR in its true hypermarket model

will offer all of the above for both leading brands as also for its private labels.

4.2 Layout chart of Big bazaar located at Phoenix

i. HELP DESK – As you can see from the layout, the Help Desk is located in a place

where everyone has their first sight that is in front of the entrance. This shows that

when a person enters in to big bazaar it can get all information about the stores of

big bazaar from the person sitting in the help desk. Help Desk uses paging service as

a tool for the convenience of its employees and customers.

ii. KIDS SECTION – The kids section is located just at the left corner of the entrance

of big bazaar. In the kid’s section kid’s accessories like diapers, trolleys, suckers,

water bottles are available in one part. Kid’s jackets and baba suits are available in

another part. Kids casual wear (jeans and shorts) are placed in one part of it and

infant shirts & t-shirts are also placed in another part. In this section the pillars are

used for displaying information like size chart and section description. The apparels

are available at a price of Rs59 onwards.


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iii. MENS SECTION – Next to it is the men’s section that is in the center. It is divided

in to five parts. At one part men formal shirts are available. In other parts men

trousers, suits and blazers, fabrics and ethnics are available respectively. Here the

price ranges from a minimum of Rs99 to Rs899.

iv. LADIES SECTION – Next to it is the ladies section that is in the extreme right

side. The ladies section is segregated in to seven parts. Ladies section starts from

ladies ethnics, ladies western wear, ladies formals (office wear), ladies accessories –

lingerie’s, ladies perfumeries, and ladies cosmetics respectively. Here the price of

the apparel ranges from Rs99 to Rs1000 approx.

v. Promotional scheme – With an add on to the above products there are various other

products which are available with a promotional scheme. The various products under

this scheme includes girl t-shirts, infant winter wear etc.

vi. Non-Promotional scheme – There are various other products available without any

promotional scheme which includes jeans, infant baba suits, infant t-shirts, kids night

wear, kids salwar suits etc.

vii. Sports Store – At the extreme corner there is a sports store where various kinds of

sport items are available.

viii. Food Bazaar – The food bazaar is in the 1st floor of the building. Various kinds of

food items, fruits and vegetables are available there. Sitting arrangements are well

made so that people can sit and take tea, coffee or snacks or any other food item and

can relax.

ix. Cash Counter – The cash counter is located just near the exit


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CHAPTER #5

SWOT ANALYSIS

A swot analysis is done to know the strengths, weaknesses, opportunities and threats of any

company. This analysis will explain about the strengths, weaknesses, opportunities and

threats of big bazaar.

5.1. Strengths of Big bazaar

i. Large variety option

Choice is good for us, but its relationship to satisfaction appears to be more

complicated than we had assumed. There is diminishing marginal utility in having

alternatives; each new option subtracts a little from the feeling of well-being, until

the marginal benefits of added choice level off. What’s more, psychologists and

business academics alike have largely ignored another outcome of choice: More of

it requires increased time and effort and can lead to anxiety, regret, excessively

high expectations, and self-blame if the choices don’t work out. When the number

of available options is small, these costs are negligible, but the costs grow with the

number of options. Eventually, each new option makes us feel worse off than we

did before.

Choice can no longer be used to justify a marketing strategy in and of itself. More

isn’t always better, either for the customer or for the retailer. Discovering how


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much assortment is warranted is a considerable empirical challenge. But

companies that get the balance right will be amply rewarded.

ii. Cheap price

Big Bazaar products are cheaper than anywhere else in the market by 5 to 60%. It

has its largest chain of retail marketing in India. It gives a family shopping

experience; it offers itself as a family shopping destination where the entire family

can visit together.

iii. Huge customer Base

The clients to whom a business sells products and services. The customer base is a

relatively broad number of customers, with a smaller section of the base

being comprised of repeat customers.

The customer base is the group of customers who repeatedly purchase the goods or

services of a business. These customers are a main source of revenue for a

company. The customer base may be considered the business's target market,

where customer behaviors are well understood through market research or past

experience. Relying on a customer base can make growth and innovation difficult.

5.2. Weaknesses of Big bazaar

i. Lacks in branded products

There is no reason for any pessimism on Indian retail market prospects, Sanjeev

Agarwal, the Joint CEO of Big Bazaar, the Future Group chain, said here on Friday.

http://www.businessdictionary.com/definition/client.html

http://www.businessdictionary.com/definition/business.html

http://www.businessdictionary.com/definition/sell.html

http://www.businessdictionary.com/definition/product.html

http://www.businessdictionary.com/definition/services.html

http://www.businessdictionary.com/definition/base.html

http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/section.html

http://www.businessdictionary.com/definition/comprise.html

https://en.wikipedia.org/wiki/Customers

https://en.wikipedia.org/wiki/Business

https://en.wikipedia.org/wiki/Target_market

https://en.wikipedia.org/wiki/Market_research

http://www.business-standard.com/search?type=news&q=Indian+Retail+Market

http://www.business-standard.com/search?type=news&q=Future+Group


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Speaking to Business Standard at the launch here of their 148th store in the country, he

said the market was far from saturation. “We plan to continue opening one to two

stores every month,” he said. “We are positive on consumer spending.”

Agarwal said the chain’s revenue was growing at 25 per cent yearly. However, he

declined to talk on investments made or being planned.

Ruling out a foray abroad, he said the opportunity in India was quite large and,

therefore, there was no reason to look elsewhere. “Our strength lies in knowing the

Indian customer well.”

ii. Low in product quality

Big Bazaar offers the maximum variety for every category of product. The product is

the same in every store in the city but the brand options are more in Big Bazaar and the

quantity for each product is not limited to large packs only. The commodities sold by

the retail chain includes its "own products" which get a ready distribution network.

The own products of Big Bazaar include My World fashion magazine which is not

available anywhere else. So costs are very low for such products.

iii. Unable to provide enough parking space to its customers

The major problem that these upcoming malls are going to face is of parking. As the

retail sector is estimated to grow at 20 per cent, the retail space available will be more

than 25 million sq ft by the 2006 end. NCR, Mumbai and Bangalore are expected to

attract a major pie at over 60 per cent with NCR alone going more than six million sq

ft with 30 malls coming up by 2006 in the region.

So most of the malls are trying to provide as much of parking as possible within the

constraints of the plot area and the relevant bye-laws. But the reality is that even this

much parking space is not enough. In fact, 40-60 per cent of the mall traffic in the


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country is car-borne. This figure is higher in NCR than in the other cities. The balance

consumers are less likely to be high ticket value or serious spenders and their spend is

more on categories such as fast-food,appearel and cinemas.

5.3. Threats for Big bazaar

i. Convenience of customers to nearby kirana stores

Unorganized retail stores are a threat to the business of big bazaar as now also

people prefer to go to the local stores which are convenient enough for them.

ii. Availability of products in other retail outlets

There are a lot of countries which are planning to enter the Indian market like

Wal-Mart, Carrefour and Tesco which is a big threat to Big Bazaar.

5.4. Opportunities for Big bazaar

i. To open up more and more number of big bazaars in different cities of the

country.

Future Group was founded on a simple idea, rewrite rules, retain values to create

a new kind of transformed marketplace and as a result country’s largest modern

retailer is set to break all records. It is now present across more than 100 cities in

India. He said that Punjab was among the top states in per capita spending while

Haryana ranked among the top in per capita income. The Big Bazar had devised

its expansion strategy on that count. Big Bazaar would also open a store at Jammu

in Jammu and Kashmir State shortly to tap the untapped state


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ii. To grab the rural market

Nowadays people prefer going to one big store and buy everything instead of

visiting different places for different items and waste time. So Big Bazaar can

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

There is a lot of potential in the rural market.


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CHAPTER #6

Questionnaire prepared for customers of Big Bazaar

1. How frequently do you visit Big Bazaar?

a) Weekly

b) Monthly

c) Quarterly

d) On a unplanned basis

2. Apart from Big Bazaar do you intend to visit any other retail outlet in a Mall?

a) Yes

b) No

3. If yes then what are the other retail outlets do you intend to visit in a mall?

a) Garment Outlet

b) Footwear Outlet

c) Food Court

4. What is the purpose behind visiting Big Bazaar?

a) Shopping

b) To check latest trnd


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5. What type of products do you mostly purchase in Big Bazaar?

a) Cloths

b) Grocery

c) Food Item

d) Electronic Item

6. On an average how much amount of money do you spend in a visit to Big Bazaar?

a) Below 500

b) 500 – 1000

c) 1000 – 1500

d) 1500 – 2000

e) More than 2000

7. On an average how much time do you spend in a visit to Big Bazaar?

a) Less than half an hour

b) Half an hour to 1 hour

c) 1 hour to 1 ½ hours

d) 1 ½ hours to 2 hours

e) More than 2 hours

8. Do you go with a planned list of products to be purchased from Big Bazaar?

a) Yes

b) No


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9. What is your mode of payment in Big Bazaar?

a) Cash payment

b) Credit Card

10. What encourages you to visit Big Bazaar?

a) Price

b) Service

c) Ambience

d) Product Variety

11. How would you rate the services of the sales personnel in Big Bazaar on a 1 – 5 scale?

a) Very good

b) Good

c) Ok

d) Poor

e) Very poor

12. What is your convenience to Big Bazaar?

i. Hired vehicle

ii. Two-wheeler

iii. Four-wheeler

iv. Any other


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13. How is the parking space availability in Big Bazaar?

a) Less than adequate

b) Adequate

c) More than adequate

14. Do you go to Local Kirana store?

a) Yes

b) No

15. What’s your monthly income?

a) Below 50,000

b) 50,000 – 1,00,000

c) 1,00,000 – 1,50,000

d) 1,50,000 – 2,00,000

e) More than 2,00,000

1. Name: -

2. Age: -

3. Sex: -

4. Location/Address: -

5. Qualification: -

6. Profession: -


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CHAPTER #7

SUGESSTIONS AND CONCLUTION

7.1. Suggestions

i. Big bazaar should provide large parking space for its customers so that they can

easily park their vehicles.

ii. Big bazaar should include more of branded products its product category so as to

attract the brand choosy people to come in to big bazaar

iii. It should make different cash counters for different customers. Cash counter and

credit card payment counter should be placed differently in order to reduce the

rush and save the customer’s time. This will be a kind of motivator for the

customers of big bazaar.

iv. The service of the sales person is needed to be improved. Personal care should be

taken by the sales person for the customers so that the customers feel good.

v. During the off peak hour’s big bazaar should provide some offers to its customers

so that people would be encouraged to come to big bazaar during off peak hours.

The customers who are present in the mall during the off peak hours of big bazaar

will definitely go in to big bazaar if surprise offers are made at that time.

vi. Customer care department is needed to take proper care of customer complaints

and queries. The person sitting at the help desk of big bazaar should be able to

provide all necessary information to the customers whenever it is required.


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vii. The infrastructure is needed to be changed a bit during weekends as heavy crowd

comes in to big bazaar during those days.

7.2. Conclusion

Big bazaar is a major shopping complex for today’s customers. It is a place where

customers find variety of products at a reasonable price. Big bazaar has a good

reputation of itself in the market. It has positioned itself in the market as a discounted

store. It holds a huge customer base. The majority of customers belong to middle class

family. The youth generation also likes shopping and moving around big bazaar.

Volume sales always take place in big bazaar. Impulse buying behavior of customers

comes in to play most of the times in big bazaar.

Big bazaar is a hypermarket as it provides various kinds of goods like apparels,

grocery, stationary, food items, electronic items, leather items, watches, jewellery,

crockery, decorative items, sport items, chocolates and many more. It competes with all

the specialty stores of different products which provide goods at a discounted rate all

through the year. It holds a large customer base and it seemed from the study that the

customers are quite satisfied with big bazaar. A report by NDTV Profit says that Big

Bazaar has nearly 10,000 virtual franchisees in different cities of India, it seems that

there is a vast growth of big bazaar lying as customers demand is increasing for big

bazaars.


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Big bazaar is a hypermarket store where varieties of products are being sold on

different product category. It has emerged as a hub of shopping specially for middle

class people.

Different types of products starting from a baby food to pizzas all are available under

one roof. In Mumbai it is the middle class people who mostly do marketing from big

bazaar. Even most of the people do their monthly shopping from big bazaar.

People not only visit big bazaar to do shopping but also visit for outing purpose as it

provides a very nice ambience to its customers. As people go to malls they just tend to

move around big bazaar whether it is for shopping purpose or for outing purpose.

Grocery, apparels and food items are the products which are demanded most by the

customers of Mumbai in big bazaar. The major drawback of big bazaar is that it lacks in

providing enough parking space for its customers. This may discourage the customers

to come to big bazaar and shop as they face difficulty in parking their vehicles. Even

though some customers say that they don’t feel problem in parking their vehicle, it is

because of the parking space available to them by the mall.


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BIBLIOGRAPHY

BOOKS-

KNOOTZO’ DONNEL - “Essentials of management concepts”

PHILIP KOTLER - “Marketing Management”

C .R. KOTHARI - “Research Methodology”

WEBSITES-

www.bigbazaar.com

www.google.com

REFERENCE-

Big bazaar outlet in Mumbai

MAGAZINE-

Business World

The Economic Times

http://www.big/

http://www.google.com/

Documents

Rm Project