A Study on Category Management

With reference to Big Bazaar, KACHIGUDA

A project report submitted in partial fulfillment of the requirements

For the award of the degree of

MASTERS OF BUSINESS ADMINISTRATION

Submitted by

Darapureddi.Pradeep Kumar (PG141501038)

Under the esteemed guidance of

Mr.K.V.V.Devi Prasad

Asst. Professor

Department of Management StudiesGayatri Vidya Parishad College for Degree & PG Courses (Autonomous)

Affiliated to Andhra UniversityGayatri valley, Rushikonda campus

Visakhapatnam-530045(2014-2016)

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DECLARATION

I hereby declare that the project report entitled “A Study on Category Management with

reference to Big Bazaar, Kachiguda” submitted by me to Department of Management Studies,

Gayatri Vidya Parishad College for Degree & PG Courses (Autonomous), Affiliated to Andhra

University is a bonafide work done by me for the partial fulfillment of MASTER OF

BUSINESS ADMINISTRATION and has not been submitted to any other university or

published at any time before.

Place: VISAKHAPATNAM D.PRADEEP KUMAR

Date:

2

CERTIFICATE

This is to certify that the Project report entitled “A Study on Category Management with

reference to Big Bazaar, Kachiguda” being submitted by Mr.D.PRADEEP KUMAR is a bonafide

work done for partial fulfillment of the award of Degree of MASTER OF BUSINESS

ADMINISTRATION during 2014-16 in Department of Management Studies, Gayatri Vidya

Parishad College for Degree & PG Courses (Autonomous) under my guidance and supervision.

Place: VISAKHAPATNAM K.V.V.DeviPrasad

Date:

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ACKNOWLEDGEMENTS

I would like to take this opportunity to express my heartiest concern of work to all those who

have helped me in various ways to complete this project.

I express my sincere thanks to Prof. S.K.V.Suryanarayana Raju, Principal, Gayatri Vidya Parishad College for Degree and PG Courses (A), Visakhapatnam, for his encouragement throughout academic.

I take the privilege of extending my gratitude to Prof.S.Rajani, Director, Department of Management Studies, Gayatri Vidya Parishad College for Degree & P.G courses (A), Visakhapatnam, for giving me opportunity to work on this project.

I immensely thank, Dr.K.V.V.Murali Someswara Rao, Associate Professor and Head of the Department, Department of Management studies, Gayatri Vidya Parishad College for Degree & P.G courses (A), Visakhapatnam, for his valuable guidance, suggestions in completion of this project successfully.

I profoundly thank Mr.K.V.V.Devi Prasad, Asst. Professor, Dept. of Management studies, Gayatri Vidya Parishad College for Degree & P.G courses (A), Visakhapatnam, for his encouragement and helped me at various stages that have been instrumental in materialization of this project.

I would like to express my sincere gratitude to Mrs.Tanuja Reddy, H.R Manager at Big Bazaar, KACHIGUDA for giving me guidance and cooperation during the course of the project. He provided me with his assistance and support whenever needed.

I extend my sincere thanks to all my faculty members and my parents for their valuable support and encouragement throughout the course.

PRADEEPKUMAR.D (PG141501038)

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CONTENTS

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TITLE PAGE NO.

CHAPTER-I 1-7

INTRODUCTION 1

NEED FOR THE STUDY 3-4

OBJECTIVES OF THE STUDY 5

METHODOLOGY 6-7

LIMITATIONS 7

CHAPTER-II 8-15

PROFILE OF RETAIL INDUSTRY 9-15

CHAPTER-III 16-35

PROFILE OF BIGBAZAAR 17-35

CHAPTER-IV 36-49

THEORETICAL FRAME WORK ON

CATEGORY MANAGEMENT

37-49

CHAPTER-V 50-76

DATA ANALYSIS AND INTERPRETATION 51-76

CHAPTER-VI 77-79

SUMMERY 78-79

FINDINGS 80-81

SUGGESTIONS 82

ANNEXURES 83-86

BIBLIOGRAPHY 87

CHAPTER – I

INTRODUCTION

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY

METHODOLOGY

LIMITATIONS

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INTRODUCTION

Category management is a retailing and purchasing concept in which the range of products

purchased by a business organization or sold by a retailer is broken down into discrete groups of

similar or related products; these groups are known as product categories (examples of grocery

categories might be: tinned fish, washing detergent, toothpastes). It is a systematic, disciplined

approach to managing a product category as a strategic business unit.

Each category is run as a "mini business" (business unit) in its own right, with its own set of

turnover and/or profitability targets and strategies. Introduction of Category Management in a

business tends to alter the relationship between retailer and supplier: instead of the traditional

adversarial relationship, the relationship moves to one of collaboration, with exchange of

information, sharing of data and joint business building.

The focus of all supplier negotiations is the effect on turnover of the category as whole, not just the

sales of individual products. Suppliers are expected, indeed in many cases mandated, to only suggest

new product introductions, a new planogram or promotional activity if it is expected to have a

beneficial effect on the turnover or profit of the total category and be beneficial to the shoppers of

that category.

One key reason for the introduction of category management was the retailers' desire for suppliers to

add value to their (i.e. the retailer's) business rather than just the supplier's own. For example, in a

category containing brands A and B, the situation could arise such that every time brand A promoted

its products, the sales of brand B would go down by the amount that brand A would increase,

resulting in no net gain for the retailer. The introduction of category management imposed the

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condition that all actions undertaken, such as new promotions, new products, re-vamped planogram,

introduction of point of sale advertising etc. were beneficial to the retailer and the shopper in the

store.

A second reason was the realization that only a finite amount of profit could be milked from price

negotiations and that there was more profit to be made in increasing the total level of sales.

A third reason was that the collaboration with the supplier meant that supplier's expertise about the

market could be drawn upon, and also that a considerable amount of workload in developing the

category could be delegated to the supplier.

NEED FOR THE STUDY:

Big Bazaar, Kachiguda is an infant retail shopping mall. Since the incorporation it Involved

verity of category management because in future it would be a market leader in all Over India.

So the researcher wants to do project work in this organization to practical Knowledge point of

view.

Keeping in mind the rapid growth of Indian retail industry and its bright future, this has always

been a thrust area for me. Big Bazaar is at the top position in Indian retail industry. That is why it

attracted me to have a study in Big Bazaar, Kachiguda. Big Bazaar is the retail chain of Future

Retail (India) Ltd. And it provides a wide range of products availability for the customers.

As a matter of fact, retail is the buzz word of the Indian economy today. As retail industry is

growing at a high pace I wanted to have an overview of the subject. I have chosen Big Bazaar

retail chain for the project work, because Big Bazaar retail is very upcoming retail company

which is continuously changing its activities with the change of time. I wanted to understand

their marketing activities and liked to relate how similar or dissimilar it is from what I have

studied in marketing management.

The introduction of category management imposed the condition that all actions undertaken,

such as new promotions, new products, re-vamped planogram, introduction of point of

sale advertising etc. were beneficial to the retailer and the shopper in the store.

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It helps collaboration with the supplier meant that supplier's expertise about the market could be

drawn upon, and also that a considerable amount of workload in developing the category could

be delegated to the supplier.

Here the need of this study is to know what the customers of big bazaar are perseving about the

category management in the store. And impact of category management on customers purchase.

When a customer is making a buying decision on a specific product of a category whether he is

looking correct product, price, large assortments.

The company following category management to influence the customers to make a buying

decision, where my study is to know how much impact making a buying decision and what

elements looking for in a category management to attract customers towards a product of a

particular category.

To study how customers reacts towards the category management in big bazaar, kachiguda. To

study category management influence on customers to make a decision. To find out which

element is need to get most customer attention.

To know that is category management really impact on customer buying decisions. To know to

what extent category management helps in increasing sales.

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OBJECTIVES OF THE STUDY:

The main objective of the study is to find out customers’ satisfaction levels on category

management in Big bazaar, Kachiguda, Hyderabad.

To know the socio-economic profile of the customers of big bazaar.

To know the shopping behavior of the customers of Big bazaar.

To look at the current trends in the Indian organized retail industry.

To offer suggestions for effective Category management in Big bazaar.

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RESEARCH METHODOLOGY: Research methodology is a way to systematically solve the research problem. In it, step-by-step

Research Methodology is a way to systematically solve the research problem. In it, step-by-step methods

are followed to solve a particular problem. It refers to a search for knowledge. It can also be defined as a

scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of

scientific investigation.

The methodology adopted for the present study was focus discussion, interview and close observation

through in-house study. Since the project is based on action research it was necessary to build rapport to

collect maximum information from the Customers. Hence the research spent considerable time with the

people who reside in city. The main focus was to do with the assessing the satisfaction level of customer

and explore the possibility of more sound arrangement of disseminating outlook information system.

Data Source:

Primary data:

Primary data is the new or fresh data collected from the respondents through direct

interview using a pre-structured questionnaire.

Personal Interview

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Close observation

Survey conduction

Secondary data:

Secondary data may be obtained from many sources, including literature, industry

surveys, compilations from computerized databases and information systems, and computerized

or mathematical models of environmental processes.

I collected them by following method –

Internet

Books

Records

Company website

Study design:

Data collection structure:

Data Collection Instrument: Structured questionnaire

Sample size : 300

Sampling technique : Convenience sampling

Study area : Bigbajaar ,kachiguda,Hyderabad

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Study period :27th April 2015 to 27th June 2015

Limitations of the study: The survey is limited to a particular area i.e.Kachiguda big bazaar.

Collection of data is dependent on the information given by the respondents.

The respondents are sometimes not giving exact information.

Data is insufficient.

Chapter-2 Profile of Retail Sector

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Retailing:

The word ‘retail’ is derived from the French word ‘retailer’, meaning ‘to cut a piece off’ or

‘to break bulk’. In simple terms, it implies a first-hand transaction with the customer.

Retailing involvers a direct interface with the customer and the coordination of business

activities right from the concept or design stage of a product or offering to its delivery and post-delivery

service to the customer. The industry has contributed to the economic growth of many countries and is

undoubtedly one of the fastest changing and dynamic industries in the world today.

Indian retail industry:

The Indian retail industry is the fifth largest in the world. Comprising of organized and

unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over

the last few years. Though initially, the retail industry in India was mostly unorganized, however with

the change of tastes and preferences of the consumers, the industry is getting more popular these days

and getting organized as well. With growing market demand, the industry is expected to grow at a pace

of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to

Rs. 109,000 crore by the year 2010.

The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12 million

retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500 square

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feet in size, the per capital retail space India being 2 squre feet compared to the US figure of 16 square

feet India’s per capital retailing space is thus the lowest in the world.

With more than 9 outlets per 1000 people, India has the largest number in the world. Most of them

are independent and contribute as much as 96% to total retail sales. Because of the increasing number of

the nuclear families, working women, greater work pressure and increased commuting time,

convenience has become a priority for Indian consumers. They want everything under one roof for easy

access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the

country which account for just 2% and modern stores 0.5% of the estimated US Dollar 180 billion worth

of goods that are retailed in India every chain, Wal-Mart.

Growth of Indian retail industry:

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India

retail industry is the most promising emerging market for investment. In 2007, the retail trade in

India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to

12%. It is also expected to reach 22% by 2010.

According to a report by North bride Capita, the India retail industry is expected to grow to US$

700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It

can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

India is rapidly evolving into a competitive marketplace with potential target consumers in the niche

and middle class segments. The market trends indicate tremendous growth opportunities. Global majors

too are showing a keen interest in the Indian retail market. Over the years, international brands like

marks and spencer, Samsonite, Lacoste, McDonald’s, Swarovski, Domino’s among a host of others have

come into India through the franchise route following the relaxation of FDI (Foreign Direct Investment)

restrictions. Large Indian companies- among them the Tata, Goenka and the Piramal groups are

investing heavily in this industry.

Major Retailers in India:

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Pantaloon:Pantaloon is one of the biggest retailers in India with more than 450 stores across the country.

Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's

growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001,

Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments:

Food & Grocery: Big Bazaar, Food Bazaar

Home Solutions: Hometown, Furniture Bazaar, Collection-I

Consumer Electronics: e-zone

Shoes: Shoe Factory

Books, Music & Gifts: Depot

Health & Beauty Care: Star, Sitara

E-tailing: Futurebazaar.com

Entertainment: Bowling Co.

Tata Group:

Tata group is another major player in Indian retail industry with its subsidiary Trent, which

operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and

music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lake sq. ft retail space across the country.

RPG Group:

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food &

grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty

care outlets ‘Health & Glow’.

Reliance: Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores

and Reliance Mart are quite popular in the Indian retail market. It’s expecting its sales to reach Rs.

90,000 crores by 2010.

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AV Birla Group:

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Philippe,

Allen Solly, Van Heusen, and Peter England are quite popular. It's also investing in other segments of

retail. It will invest Rs. 8000-9000 crores by 2010.

Another big player in the segment will be the Bharti group. Overhauling this part of the supply

chain will be the key to the success of any retail venture in food and groceries segment.Wal-Mart, the

world’s largest retailer, and Bharti Enterprises have signed a Memorandum of Understanding (MoU) to

explore business opportunities in the Indian retail industry. This joint venture will mark the entry of

Wal-Mart into the Indian retailing industry a retail chain like Future Group’s Big Bazaar may be

clocking heady sales (growing at 100% year- on- year), but the dozen odd shops operating in its

proximity wear a deserted look, giving a somewhat hollow ring to the much- talked- about retail boom

in the country. The key players currently operating in the Indian retail industry includes Future Group,

Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd,

Videocon Appliances Ltd, ITC Ltd, Godrej Agrovert Ltd, and DCM-Hariyah Kissan Bazaar.

Retailers ranging from Pantaloon to RPG to Piramal’s or the Tata’s are working towards exploiting

this model, perceived by consumers as more value enhancing. But in the long run, what is most likely to

succeed is a more balanced multi-format strategy. Finally, while in the first flush of the retail boom, the

elimination of traditional intermediaries may bring windfall gains (as well as bring welcome and much-

needed relief to the producers), this source will increasingly dry out as competition intensifies and

margins come under pressure a few years down the line. What would set the survivors apart from those

who are forced to sell out or go belly-up will be differentiators like location, value-added services

(convenience), private labels and customer loyalty programs other than price. The last, a result of

retailer-manufacturer tie-ups, state-of-the-art supply chain infrastructure, global sourcing and scale will

be a key factor. And, if experience in other markets is anything to go by, an uncanny ability to read

shifting trends.

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Retail formats in India:

Hyper marts /supermarkets:

large self-servicing outlets offering products from a variety of categories.

Mom-and-pop stores: they are family owned business catering to small sections; they are

individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products and services.

Convenience stores: are located in residential areas with slightly higher prices goods due to the

convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of

products and services including entertainment and food under a single roof.

E-trailers: are retailers providing online buying and selling of products and services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small

items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories. They are known as

category killers as they focus on specific categories, such as electronics and sporting goods. This

is also known as Multi Brand Outlets or MBO's.

Specialty stores: are retail chains dealing in specific categories and provide deep assortment.

Mumbai's Crossword Book Store and RPG's Music World is a couple of examples.

Challenges facing Indian retail industry:

The tax structure in India favors small business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

Shortage of trained manpower

Low retail management skill

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The retail industry in India is currently growing at a great pace and is expected to go up to

US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at

a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone

up and is also expected to go up further in the future. In the last four year, the consumer spending in

India climbed up to 75%. As a result, the India retail industry is expected to grow further in the

future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

Categories of Indian Retailers:

Corporate Houses:

Tata’s: Tata Trent

RPG group: Food World, Health and Glow etc.

ITC: Wills Life Style

Raheja group: (Shoppers’ Stop), DLF (DT cinemas).

Nike, Rbk. Zodiac

Multi-brand outlets

Vijay Sales, Viveks etc.

Manufacturers/ Exporters

Pantaloons, Bata, Weekender

Classifying Indian Retailers:

1. Modern Format Retailers:

Supermarkets (food World)

Hypermarkets (Big Bazaar)

Department Stores (shopper’s Stop)

Specialty Chains (Ikea)

Company Owned Company Operated

2. Traditional Format Retailers:

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Kiranas: traditional Mom and Pop Stores

Kiosks

Street Market

Exclusive /Multiple Brand Outlets

3).Hypermarket:

Big Bazaar

Giants

Shoprite

Star

4).Department:

Lifestyle

Pantaloons

Pyramids

Shoppers Stop

Trent

5).Entertainment

Fame Ad labs

Fun Republic

Inox

PVR

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CHAPTER-3 COMPANY PROFILE

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COMPANY PROFILE:

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading

business houses with multiple businesses spanning across the consumption space. While retail forms the

core business activity of Future Group, group subsidiaries are present in consumer finance, capital,

insurance, leisure and entertainment, brand development, retail real estate development, retail media and

logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet

of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai

(Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges.

The company follows a multi-format retail strategy that captures almost the entire consumption basket

of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and

Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket

format that combines the look, touch and feel of Indian bazaars with the choice and convenience of the

customers.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a

hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore.

The group’s speciality retail formats include supermarket chain – Food Bazaar, sportswear retailer -

Planet Sports, electronics retailer - eZone, home improvement chain - Home Town and rural retail chain,

Aadhaar, amongothers.

Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth

over $1 Billion that are being invested in consumer brands and companies, real estate, hotels and

logistics. It also operates a consumer finance arm with branches in 150 locations

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Other group companies include, Future Generali, the group’s insurance venture in partnership with

Italy’s Generali Group, Future Brands, a brand development and IPR company, Future Logistics,

providing logistics and distribution solutions to group companies and business partners and Future

Media, a retail media initiative.

The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed

company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and

family entertainment centres, F123. Through its partner company, Blue Foods the group operates

around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle

Bar, The Spoon, Copper Chimney and Gelato.

Future Group’s joint venture partners include, US-based stationery products retailer, Staples and

Middle East-based Axiom Communications. Future Group believes in developing strong insights

on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core

value of ‘Indianness.The group’s corporate credo is, ‘Rewrite rules, Retain values.’

Future Retail: Retail forms the core business activity at Future Group and most of its businesses in the

consumption space are built around retail. Future Group’s retail network touches the lives of more than

200 million Indians in 73 cities and 65 rural locations across the country. The group currently operates

around 1,000 stores spread over 16 million square feet of retail space. Present in the value and lifestyle

segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross-

section of Indian consumers.

Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s most

popular retail chains like Pantaloons - a chain of fashion destinations, Big Bazaar - a uniquely Indian

hypermarket chain, Food Bazaar - a supermarket chain that blends the look, touch and feel of Indian

bazaars with aspects of modern retail like choice, convenience and quality and Central - a chain of

seamless destination malls. Some of its other formats include Ethnicity - India's first concept store,

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which recreates the experience of a traditional ethnic market in a modern retail format, Brand Factory,

Planet sports, Star and Sitar.

Retailing of products and services related to home building and home improvement is led through

the group’s formats, Home Town, a large-format home solutions store, along with specialized formats

for home furniture and home furnishing through, Collection i and Furniture Bazaar and consumer

electronics through eZone and Electronics Bazaar.

The group also operates India’s leading rural retailing chain, Aadhaar that is present in over 65

locations in rural India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution

provider for the Indian farmer.

In 2007, Pantaloon Retail was awarded the International Retailer of the Year by the US-based

National Retail Federation (NRF) and the Emerging Market Retailer of the Year at the World Retail

Congress held in Barcelona.

Corporate Statements:

Future Group manifesto:

‘Future’- the word which signifies optimism, growth, achievement, strength, beauty, rewards and

perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten, create new

opportunities and new successes. To strive for a glorious future, it brings to us our strength, our ability

to learn, unlearn and re-learn our ability to evolve.

We, in Future Group, will not wait for the future to unfold itself but create future scenarios in the

consumer in the consumer space and facilitate consumption because consumption is development.

Thereby, we will effect socio-economic development for our customers, employees, shareholders,

associates and partners. Our customers will not just get what they need, but also get them where, how

and when they need.

We will not just post satisfactory results, we will create success stories.

We will not just operate efficiently in the Indian economy, we will evolve it.

We will not just spot trends; we will set trends by marrying our understanding of the Indian consumer to

their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us succeed in the future.

We shall keep relearning.

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Rewrite Rules, retain Values

Vision:

“Future Group shall deliver Everything, Everywhere, Every time for Every Indian consumer in the most

profitable manner.”

Mission:

We share the vision and belief that our customers and stakeholders shall be served only by

creating and executing future scenarios in the consumption space leading to economic

development.

We will be the trendsetters in evolving delivery formats, creating retail realty, making

consumption affordable for all customer segment- for classes and for masses.

We shall infuse Indian brand with confidence and renewed ambition.

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

We shall ensure that our positive attitude, sincerity, humility and united determination shall be

the driving force to make us successful.

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 in our conduct.

Introspection: Leading to purposeful thinking.

Openness: to be open and respective to new ideas, knowledge and information.

Valuing and nurturing relationship: to build long term relationships.

Simplicity & positivity: Simplicity and positivity in our thought, business and action.

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Adaptability: to be Flexible and adaptable, to meet challenges.

Board of Directors:

Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief

Executive Officer of Future Group.

Mr. Gopikishan Biyani, Whole time Director

Gopikishan Biyani is a commerce graduate and has more than twenty years of experience in the

textile business.

Mr. Rakesh Biyani, Whole time Director

Rakesh Biyani is a commerce graduate and has been actively involved in category management;

retail stores operations, IT and exports. He has been instrumental in the implementation of the various

new retail formats.

Mr. Vijay Biyani, Whole time Director

Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail industry

and has been actively involved in the financial, audit and corporate governance related issues within

the company.

Mr. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by

profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career

spans over 31 years and he has served senior management positions in Central Bank of India,

Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.

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Mr. Shailesh Haribhakti, Independent Director

Shri Shailesh Haribhakti is a Chartered Accountant, Cost Accountant, and a Certified Internal

Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past

president of Indian merchant Chambers. He is on the Board of several Public Limited Companies,

including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the

Board of Company since June 1, 1999.

Mr. S Doreswamy, Independent Director

S.Doreswamy is a former Chairman and Managing Director of Central Bank of India and serves on

the board of DSP Merrill Lynch Trustee Co and Ceat Limited among others.

Dr. D O Koshy, Independent Director

Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of

Commerce, GOI) as Director for 2 terms of office prior to which he was the founding Chairperson of

Fashion Management at the National Institute of Fashion Technology (Ministry of Textiles, GOI).  

He is currently the Director General & CEO of ATDC Network of 58 Institutes / Centers and two

premier campuses of Institute of Apparel Management under the aegis of AEPC (Sponsored by

Ministry of Textiles, GOI).  Dr. Koshy received the Delhi IIT Alumni Award for contribution of

National Development in 2008. Dr. Darlie Koshy was also conferred with the “Star of Italian

Solidarity” one of the highest civilian awards of the Government of Italy. Dr. Koshy is the author of

three pioneering books including the much acclaimed “Indian Design Edge”.

Ms. Bala Deshpande, Independent Director

Bala Deshpande is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards

of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among

others.

Mr. Anil Harish, Independent Director

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Anil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of

Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT,

among others.

Company Timeline:

1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons

trouser, India’s 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 franchisee format launched

across the nation. The company starts the distribution of branded garments

through multi-brand retail outlets across 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 in Kolkata, Bangalore

and Hyderabad.

2002 Food Bazaar, the supermarket chain is launched.

2004 Central - India’s 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 India’s first real estate investment fund

Kshitij to build a chain of shopping malls.

2006 Future Capital Holdings, the company’s financial is formed to manage over $1.5

billion in real estate, private equity and retail infrastructure funds. Plans forays

into retailing of consumer finance products.

Home Town, a home building and improvement products retail chain is launched

along with consumer durables format, Ezone and furniture chain,Furniture

28

Bazaar.

Future Group enters into joint venture agreements to launch insurance 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 brand development and

retail-led technology services become operational.

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

Retail Federation convention in New York and Emerging Retailer of the Year

award at the World Retail Congress held in Barcelona.

Futurebazaar.com becomes India’s most popular shopping portal.

2008 Future Capital Holdings becomes the second group company to make a

successful Initial Public Offering in the Indian capital markets.

Big Bazaar crosses the 100-store mark, marking one of the fastest ever 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 rural locations.

Companies of future group:

Future Retail (India) Limited

Home Solutions Retail India Limited Future Brands Limited Future Media (India) Limited Future Supply Chain Solutions Limited

Convergem Communication (India) Limited

Pantaloon Food Product (India) Limited Future Knowledge Services Limited Future Capital Holdings Limited

Future Generali India Insurance Company Limited

Future Generali India Life Insurance Company Limited

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Future bazaar India Limited Winner Sports Private Limited Staples Future Office Products Private Limited Talwalkars Pantaloon Fitness Private Limited ConvergeM Indus League Clothing Galaxy Entertainment Corporation Ltd Future Consumer Products Limited Future Ventures India Limited

Future Brands:

The Future Group has built a strong portfolio of some of the fastest growing consumer brands in India.

This activity is led through Future Brands India Limited, a specialized subsidiary company that was set

up to create and build powerful brands that address the aspirations of the new Indian consumer.

Some of the key brands in this portfolio include, John Miller, Lombard, Bare, DJ&C, Buffalo and RIG

in the fashion and apparel space. Dream line, present in the home segment, offers a wide range of

products in kitchenware, bed & bath linen, and Home Décor categories.

In the food and home care segment brands include Tasty Treat, Premium Harvest, Fresh & Pure, Care

Mate and Clean Mate.

In consumer durables and electronics space, the group’s brands include Koryo and Sensei.

Line of Business:

The company is present across several lines of business which have various formats (stores) lywood,

The Doller store(JV).

Fashion – Pantaloons, Central, All, Brand Factory, Blue Sky, Top 10, Fashion Station, Big

Bazaar, Lee Cooper (JV).

General Merchandise – Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture Bazaar,

KB’s Fair Price.

Electronics- e-Zone, Staples (JV).

Home improvement- Home Town

Furniture – Collection I, Furniture Bazaar, Home Bazaar.

E-tailing (Online Shopping).

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Books & Entertainment – Bowling Co., F123.

Wellness – Star & Sitara, Tulsi.

Telecom & IT – Gen M, M-bazaar, M-Port, and Converge M.

Consumer Durables – Koryo, Sensei.

Service – E-Care.

Malls – TGIP, Central Gurgaon.

Big Bazaar India’s Real Retail Story:

Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique

milestone in the History of World retail- by being the first hypermarket format in the globe to rollout

fastest 101 stores in a short span of seven years.

Big bazaar’s journey began in October 2001, when the young first generation entrepreneur Kishore

Biyani opened The country’s first hypermarket retail outlet in Kolkata [Then Calcutta] .In the same

month, Two more stores were added – one each in Hyderabad and Mumbai, thus starting on a successful

sojourn which began the chapter of organized retailing in India.

Speaking on this momentous occasion and remembering the days of conceptualizing the

hypermarket idea Mr. Kishore Biyani said, ‘’We initially decided to name the format as ‘’ Bazaar’’

because we had designed the store keeping the Indian mandi style in mind . since the size of the

hypermarket was big than an average mandi, the thought came to name it as ‘’ Big Bazaar ‘’ . However

we had freezed on the punch line ‘’ Is Se Sasta Aur Accha kahin Nahi’’ much before we met the creative

agency to design the final logo of Big Bazaar’.’

Though, Big Bazaar was started purely as a fashion format including apparel cosmetics, accessory

and merchandise, the First food bazaar format was added as shop-In shop within big bazaar in the year

2002. Today, Big Bazaar, with its wide range of products and service offering, reflects the aspirations of

millions of Indians.

The journey of Big Bazaar can be divided into two phases –one pre and the other post January 26 th,

2005 when the company rewrote the retail chapter in India, with the introduction of a never –before

sales campaign ‘’ Sasbe Sasta Din’’ In just one day , almost the whole of India descended at various

Big Bazaar stores In the country to shop at their favorite shopping destination. Further, what followed

was the time and again rewriting of the Indian Retail experience wherein understanding of the Indian

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consumers reflected in the products and services offered, creating innovative deals, expanding in the tier

II and tier III towns, tying up with branded merchandise to offer exclusive products and services to its

customers.

Big Bazaar is present today in 59 cities and occupying over 5 million sq. ft. retail space and

driving over 110 million footfalls into its stores. The format is expecting the number of footfall in the

stores to increase by over 140 million by this financial year . Over the years , Mr. Biyani for his vision

and leadership, and Big Bazaar for its unique proposition to its customers’, have received every

prestigious consumer awards both nationally and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, “what is important in our

journey is not the number of stores, but the customers’ faith in us. It’s the India and the Indians, which

have helped us, reach this feat in such a short time span and today our country is creating a history in the

word organized retail.

Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2001

adds, “Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India and the

Indianness. We believed in growing with the society, participating and celebrating all regional and local

community festivals, giving customers preferences above everything else.”

Every Big Bazaar is a small family by its own and the head of the family – Karta- is the store

manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of the consumer’s

insight, has inculcated the habit of observing, understanding customers, in every employee of the group.

Future Group is confident of the Indian Retail Story. The group has not slowed down its expansion

plans depite the fiscal woes in the economy present today. Future Group plans to have 300 stores and is

expecting revenues of Rs 13,000 crore by year 2011.

About Big Bazaar:

Type : Hypermarket type

Founded : 2001

Industry : Retail

Product : Department store

MD & CEO: Mr. Kishore Biyani

Parent : Future Group

Website : www.bigbazaar.com

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Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operations. It is a

subsidiary of Pantaloon Retail India Ltd, Future Group, offers a wide range of products including

clothing, footwear, electronic appliances, groceries and kitchen utensils. You can also buy branded

stuff from Reebok, Nike and Puma here. It caters to every need of your family. Where Big Bazaar

scores over other stores is its value for money proposition for the Indian customers.

The word hypermarket is derived from the French word hypermarket, which is a combination of a

supermarket and department store.

The stores occupy an area which ranges from anywhere between 80000 to 220000 sq. ft. and offer a

variety of food products like clothes, jewelry, hardware, sports equipment, books, CDs, DVDs, TVs,

electrical equipment and computers etc.

Hypermarkets are today synonymous with one stop shopping. The cheapest prices will normally

be found in these stores. Across three world, hypermarkets are usually part of a retail park, along with

other shops, cafeterias and restaurants. A key element of differentiation between the hypermarket and

the other retail formats is that they typically have destination locations. The hypermarkets are

designed to attract customers from a significantly large area with their low price offers, unique range

and offers. It is the largest form of organized retailing today. It is an ideal shopping experience with

an amalgamation of product, service and entertainment all under of a common roof.

The company has been able to leverage on its multi-formats-multi-brand stores, secure prime

locations at the best possible prices and command a strong bargaining power with suppliers, which

provide it an edge over its competitors.Customers come in Big Bazaar for purchasing, entertainment

and pacing here and there.It gives many facility to the customers like; Helpline, Baggage Counter,

Parking, Exchange etc. big Bazaar trying to provide customer with 3V’s

Value

Variety

Volume

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Big Bazaar has different categories; such as

Food Bazaar

Apparels

General Merchandise:- At Big Bazaar, you will definitely get the best products at the best prices-

that’s what it guarantees. With the ever increasing array of private labels, it has opened the doors

into the world of fashion and general merchandise including home gurnishings, utensils,

crockery, cutlery, sports goods and much more at prices that surprise us. Here we talk about the

department stores, because Big Bazaar based on the departments.

Department Stores:

Carry broad variety and deep assortment organized into separate deparment for displaying

merchandise.

Major departments includes:

Utensils

Plastics

Home décor

Luggage

Toys

Footwear etc.

Chains are very diverse and appeal to different markets. They are unique in terms of the shopping

experience they offer, the services they provide and the atmosphere of the store. They are promotion-

oriented. They increase competition with discount and specialty stores creating problems.

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Store Organization:

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Store Manager

Assistant Store Manager

Operational Manager

Department Manager

AdditionalDepartment Manager

Team Leader

Team Member

MARKETING MIX OF BIG BAZAR:

Retail Marketing Mix:

The basic function of retail is to provide the right goods to the consumer, at the right place and time.

Through the retail marketing mix we can compete with our competitors and achieve the sales target. The

marketing tools that a retail organization uses to pursue its marketing objectives are termed as the retail

marketing mix.

The channels are illustrated in figure given below:

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Retail

Marketing

Mix

PeopleProduct

Place Presentation

Promotion

Customer Service

Price

Product:

One of the main elements of the retail marketing mix is the products and /or services that store offers

to the customer.

Products are also termed as merchandise. The different products that the store offers are together termed

as the merchandise mix.

For example, if we consider the Fashion at department store, the merchandise line comprises:

Mans wear

Mans accessory

Party wear

Ladies wear

Kids wear

Home fashion

Price:

Pricing is an integral part of the retail marketing mix. The price policy that the organization decides to

follow depends on the customer profile of the target audience for its range of products. Big Bazaar gives

the good price to the customer .price makes the good relationship to the customers. Big Bazaar has a

punch line “Isse Sasta Aur Accha Kahin Nahi”

It gives the high discount on the price like; foods products (20%, 25%, 35%), non food products

(10%, 20%, 35%), buy one get one free Top Price, buy 3 get one free Park Avenue soap, etc.

Big Bazaar gives many offers to the customer like; the great Indian festival Big Days, Sabse Saste 3 Din,

etc. In these types of days it gives the huge discount on the products.

Place:

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The location of the retail store was considered to be the most important element of the retail marketing

mix.Big Bazaar is situated at premier location in kachiguda, Hyderabad, where Levis, E-Zone, Cafe

Coffee Day, and Reebok like stores are situated. It is the best place for Big Bazaar.

Promotion:The advertising budget, sales promotion, publicity and the public relations play a very important role in

the competitive world of retailing .these help the store to achieve the short term goals. Promotion may

be price led or occasional led, in which case special merchandise offered by the stores only for the

occasion. Most retail organization run promotions during festival seasons Big Bazaar also provides the

promotional offers on festival like Diwali, New Year, ID, Valentine day, etc. Discounts depend on the

products.

Presentation:The manner in which the merchandise is presented at the store level is very important. This aspect not

only deals with the store layout and the ambience created, but also with visual merchandising. Visual

merchandising is the orderly, systematic way of putting stock on display in the retail store.

Big Bazaar presents the store as per the season and occasions like; on Diwali store is decorated

with candles and flowers, on Christmas store is decorated with stars, ribbons, balloons, Christmas tree

and on Independence Day and Republic Day store is decorated with green, orange, and white balloons,

etc. that attract the customers.

Customer Service:The support services that a retailer offers have become very important today. The credit policies and the

product returns policies need to be clear marketing, buzzwords in the industry today and all these are

aimed at enhancing customer service.

In the Big Bazaar, the product range is good and availability of the products is very easy. Bag

Bazaar provides the low price comparison to the other retailers. Big Bazaar provides the good services

to their customer like; baggage counter, parking, product, help line, etc.

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PeopleRetailers operate in a unique environment. The retail industry is characterized by a large number of

inexperienced workers, who need to put in long hours of work. Most of the time, these employees are in

direct contact with the customer and may face irate or unreasonable customer.

The people who work at the front-end of a retail organization are very important, as they are the

manners and products knowledge plays a very important role in building long –term relations with the

customer

SWOT Analysis of Big bazaar:

Strengths:

• Better understanding of customers helping the company to serve them better.

• Vast range of products under one roof helping in attracting customer and their 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 the scale of business.

Weaknesses:

• High cost of operation due to large fixed costs.

• Very thin margin.

• High attrition rate of employee

Opportunities:

• Lot of potential in the rural market.

• Can enter into production of various products due to its in depth understanding 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.

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• Margin of business reducing all the time.

CHAPTER-IV

THEORETICAL FRAME WORK ON

CATEGORY MANAGEMENT

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THEORETICAL FRAME WORK ON CATEGORY MANAGEMENT:

Categories:

• A group of products with similar attributes

• Distinct from other products but not necessarily among themselves

• Can be substituted by each other

• Stores, stacked and sold in a similar manner

We can therefore Sum up :

A category is a group of products which meet a similar consumer need so that the products are

inter-related or substitutable.

Examples – Juices, Shaving products, Inner wear, Toys and Games

A Category is a group of similar or related items which the customer would ideally like to find

together in a store. Categories are mainly used as organizational aids to better manage and monitor

predefined groups of products.

Category Management:

Category management is the process by which a retail business is managed with the objective of

maximizing the sales and profits of a category.

It is a distributor/supplier process of managing categories as strategic business units, producing

enhanced business results by focusing on delivering consumer value.

• Categories are managed as strategic business units

• Categories are managed strategically through category plans and strategic roles

• Category Managers control their share of company assets

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• Asset Returns measure performance and establish priorities

• In a competitive business just organized and proficient chains will stay on the market.

• A huge complexity behind the workflows imposes to approach the business considering each

category as a single business, in order to decrease the whole complexity.

• So it's important ensure a managing system for each category through strategies of pricing,

promotion, assortment and exposure aiming achieve results of sales and margins.

• Category Management is a process of maximizing sales and profits while enhancing product

value and customer experience.

• It is achieved through active involvement of all stake holders Manufacturer, retailer and

customer

• While it is a business requirement for the retailer and manufacturer to partner with each other,

the customer is engaged by the retailer in order to understand buying behavior and preferences

to achieve more from less.

• The value thus captured is retained partially by the retailer and is passed on in good measure to

the customer to gain competitive advantage

• Category management is not an event but a continuous process of course correction through

performance measurement and action.

Category Management includes:

1) Space Planning:

Considerations for Layout Decisions:

• High margin items should be placed in high traffic areas.

• High demand items should be placed in low traffic areas.

• Complementary items should be placed near each other.

• Seasonal needs should be considered.

• Items needing frequent restocking should be placed near storerooms or cash registers.

• Larger departments should be placed in lower traffic areas.

• Impulse items should be placed in closer to billing.

• Shopping behavior and operational considerations should be recognized.

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Benefits of Space Planning:

• Inviting store layout improves walkins into the store.

• Improved circulation space within the store allowing for accessibility to all products. Improved

conversion rates by better product visibility and display.

• Reduction in shrinkage.

• The store layout can impact the customer’s perception of the store’s positioning.

2) Assortment Planning:

Assortment Plan or the Merchandise Mix is rated around the globe as the second most important

factor for a store, after its location. The assortment plan defines the revenue stream, impacting not

only the top lines and bottom lines but also the working capital locked in inventory.

Key Deliverables of an Assortment Plan:

• Required Average Revenue/sft.

• Required Gross Margin

• Required Average Ticket size

• Required Stock cover based on demand forecast

• Suitable product as per catchment analysis and target customer profile. Based on competition

study, merchandise mix should define the store’s USP.

3) Visual Merchandising:

“Visual merchandising”, the art of attracting patrons with visual cues, is central to a retailer’s

ability to generate sales. Visual Merchandising got its start at the turn of the century, when

department stores began using theatrical set design and lighting to create exotic displays. Today,

the way the departments are arranged, the location of the escalators, the lighting--all are carefully

planned to earn the store more sales per square foot.

Store Display Decisions:

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Shelving

Hanging

Pegging

Folding

Stacking

Dumping

Value/fashion image

Angles and sightlines

Vertical color blocking

Fixture Types

Merchandise Presentation Planning

Selecting Fixtures for Merchandise

Visual Merchandising

4) Visual communication:

• Category signage:

Category signage helps consumers negotiate thought the store to find the product

categories they are looking for. The size of the category signage varies widely from a lettering

that is a few feet in height to merely inches.

• Plannogramming:

A planogram is a diagram that shows how and where specific retail products should be

placed on retail shelves or displays in order to increase customer purchases. Planogramming is

a skill used in merchandising and retail space planning.

Planogramming Benefits:

• Improved sales presentations & closure results.

• Increased consumer appeal of product displays

• Better brand awareness through consistency

• Improved efficiency of shelf space allocations

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• Improved financial performance of assortments

• Faster, more accurate replenishments

• Quicker inventory resets

• Much better marketing through targeted displays

5) Inventory management:

There are two types of systems in inventory management.

Inventory in a PUSH system is managed at the corporate level where all buying decisions

are made and then pushed to the distribution centers for allocation to stores.

Inventory in a PULL system involves store requirements to be consolidated at the

corporate level via the distribution center an then procured.

Six Components of Category Management:

Core Components(essential):

• Strategy

• Business Process

Enabling Components (assisting)

• Scorecard

• Organization Capability

• Information Technology

• Collaborative Relationships

•

1. Strategy:

Categories are strategic business units,

Overall company strategies provide a infrastructure for category level strategies,

Strategies must be clearly understood throughout the Retailer’s organization.

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The Strategic Promotional Process:

2. Organizational Capability:

• Development of the organization’s core competency

• Through organizational structure

• Roles/Responsibilities

• Skill/Knowledge development

• Reward Systems

3. Information Technology:

• Critical elements of the Category Business Planning Process

• Need data-driven, fact-based analysis and performance measurement

4. Collaborative Relationships:

• Relationships with suppliers who acquire unique perspectives, resources and skills

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• Common objective -- delivering superior consumer value more profitability.

The Category Management Process:

Category Management is underpinned by a structured process which provides a framework for

retailer & supplier to work together strategically. A formal 8-step category management process was

developed just over a decade ago by the Partnering Group.

1).Category Definition:

• Category Definition is the 1st step in the procedure. The definition of the category has a

significant impact on the subsequent steps. A category definition ought to be based on how the

customer buys, and not on how the retailer buys.

• The trading partners need to define the new category with a name

What is it?

What are the sub-categories?

• By Brand:

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Branded

National Brand

Local Brand

• Private Label

Economy/Value

Premium

• By Usage

Fresh

Canned

Juice concentrates

2. Category Role:

• The distributor (with supplier input) would define the overall role the selected category is

going to play in the distributor’s total business

How important is the category?

How to leverage the importance?

• The category role determines the priority and the importance of the numerous categories in the

overall enterprise. These aids in resource allocation. Traditionally, four categories have been

identified. They are:

Destination category:

To be the primary category provider and help define the retailer as the store of choice by

delivering consistent, superior target consumer value.

Routine category:

To be one of the preferred category providers and help develop the retailer as the store of

choice by delivering consistent, competitive target consumer value

Occasional/Seasonal category:

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To be a major category provider, help reinforce the retailer as the store of choice by

delivering frequent, competitive target consumer value.

Convenience category:

To be a category provider and help reinforce the retailer as the store of choice by delivering

good target consumer value

3. Category Assessment:

In this step, the existing performance of the category is evaluated with respect to the turnover,

profits and return on asses in the category. It involves an assessment of the buyers, the

marketplace, the retailer and the suppliers.

Comparing internal and external data it is possible to find points of strength and points of

weakness:

- Market Share for each category (Fair Share);

- Market Share for leader brands;

- Market Share for private labels;

- Frequency and Sales in cut prices;

- Number of SKUs in each Category;

- Price Average;

- Margins;

- SKUs opportunities in the market.

Identifying Gap between current and potential sales:

We can understand clearly with the following example

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The following points are considered in a category assessment

• Who is the Target customer?

• What Inventory is required to sell profitably

• How Much Shelf Space is allotted

• If we use the same space for something else what margins can be generated

• Is there an impact on sale of other categories

• How much stock is sold on promotion

• Shrinkage and pilferage constitute what percentage of margin

• Is there any Non Sales Revenue being Generated

• Is there a Potential for growth.

4. Scorecard or Category Performance Measures:

• Establishment of the performance measures by which the category manager will

measure the quality of the execution of the plan

• What are the goals & objectives?

• How is the progress?

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Category Fruits and vegetables

Market Bangalore

Store Food world

Total sales:Bengalore market(millions) INR3,ooo

Total sales: Food world store(millions) INR54

Food world market share: Total groceries 6%

Food world market share: Fruits and Vegetables 1.8%

Gap (%) 4%

• The development of category performance measures involves the setting of

measurable targets in terms of sales, margins and Gross Margin Returns on

Investment (GMROI).

5. Category Strategies:

The purpose of this step is to help the retailer and supplier to develop methods that capitalize on

category opportunities by means of creative and efficient use of the resources that are accessible to

the category. Category strategies can be aimed at developing traffic or transactions, generating

cash, generating profit, enhancing the image or developing excitement. Every strategy aims to

decrease market share of unprofitable brands, improving share of profitable ones. How? Defining

promotions, prices, and exposures in order to influence the consumer choice.

The seven most typical category marketing strategies are:

Traffic Building

Transaction Building

Turf Defending

Profit Generating

Cash Generating

Excitement Creating

Image Enhancing (Price, Quality, Service & Variety)

Every strategy should be declined in 4 kinds of actions:

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Typical Category performance measures include:

• Sales

• Profits

• Market Share

• Inventory Turnover

• Changes in the Assortment

• Consumer Transactions

Good performance measures are characterized by:

• A balanced Architecture of

Measurement

• Total system

• Allow for comparison of

Performance Over time

• Timely, Accurate,

Assortment, Price, Promotion, Exposure. Depending of the role we can identify:

Price: Medium competitiveness Price: High competitivenesscompared with compared with all the competitorsmain competitors

Promotion focus on cut prices Promotion deep cut prices

Exposure spaces in line with sales. Exposure overdimension the spaces.focus on margins. focus on the niches.

best areas.

Assortment number of products in line with the Assortment Number of products highermarket. specific role for cheaper than the market.products and private labels. Many premium brands and

exclusive ones.

Price: Less competitive than Price: Medium competitivenessmain competitors

Promotion No promotions Promotion few promotionsgood margin

Exposure Worst store areas Exposure correctly dimension the spaces.good areas.

Assortment narrow assortment Assortment narrow assortmentno private label private label in core segmentsno premium prices deep of premium prices

Rou

tine

Des

tinat

ion

Con

veni

ence

Occ

asio

nal

Category Targets :

We have to set targets in terms of gross margin (sales x margin%). Managing the sales mix is

the best way to achieve our targets. So we need to influence the sales of every brand .

6. Category Tactics:

Specific activities supporting the category strategies which would include item variety,

every day and feature price targets, shelf presentation, etc.

Category tactics are developed in the areas of assortment pricing, promotions and the

presentation of the merchandise in the store

Category Tactics Components:

Assortment

Pricing

Promotion

Shelf Presentation

Product Supply

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• Product based Tactics

Pack of 3 briefs @ Rs 99 with 10 % margin

Rs. 20000 wedding collection Sherwani

Exclusive range of Leather footwear

Fast Moving Consumer goods – Toothpaste, Diapers

Operational Tactics

High stacks in the action alley to give feel of plenty

Exclusive Boutique look with pictures of Models

Wide range of Leather Shoes in all possible color, size and brand options

7. Category Plan implementation:

A specific implementation schedule is developed and responsibilities are assigned. Accurate

implementation is the key to the success of the Category Management.

Key Components of Plan Implementation Approval Process

Strategic Fit

Scorecard Impact

Resource Allocation

Impact on Other Areas

Assigning Responsibilities

Scheduling

8. Category Review:

Ongoing review and measurement of the progress of the plan toward the category role and

scorecard, and modification of the plan when appropriate.

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Can be a 3 stage process:

Research and opportunity identification

Creation and implementation

Metrics, correction and learning

The Category Captain:

Category captains is a supplier who forms an alliance with the retailer to enable the latter to

develop consumer insight , satisfy consumers and improve performances and profit across

the entire category.

Category captains receive downstream data for all SKUs, including competitor products, in

the category they manage. The category captain advises the retailer on the best way to

price, display, and promote all products in a category, including those of competitors.

While this arrangement ensures retail efficiency, it does raise concerns about possible

misuse of power by the category captain.

After the category review step again they go to first step and it is a cyclical process.

Objectives of the category management:

• Remove unnecessary costs by re-engineering promotional practices.

• Aligning supplier and distributor operations to retailer’s marketing strategy to support changes

in demand.

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• Joint business planning.

• Shared data on consumers, sales and products.

• Retailer knowledge of customers, and purchasing behaviour.

• Supplier knowledge of who purchases, their wants, and behaviours.

• Mind-set change; suppliers focus on growth of whole category, including competitor brands,

• Combine knowledge and skills to provide ideal category offer at point of purchase

• Communication between managers at all supply chain levels

• Balance customer needs with commercial, financial and strategic objectives.

CHAPTER-V

DATA ANALYSIS AND INTERPRETATION

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56

Data Analysis:

The tools and methods of data collection identified earlier were employed to gather data on the

consumer perception on Big Bazaar. The data accrued, especially from the interviews and questionnaires

circulated, are tabulated and depicted on graphs in the following pages. The data thus gathered and

tabulated is analyzed. The data is then scrutinized and relevant interpretations are drawn.

The major objectives of analysis of data are:

1. To evaluate and enhance data quality

2. Examine effects of other relevant factors

3. Customer satisfaction ratio,

4. Level of satisfaction,

5. Causes of dis-satisfaction,

6. Customer responses regarding services.

The data collection plan, including procedures, instruments, and forms, was designed and pre-tested to

maximize accuracy. All data collection activities were monitored to ensure adherence to the data

collection protocol and to prompt actions to minimize and resolve missing and questionable data.

Monitoring procedures were instituted at the outset and maintained throughout the study, since the faster

irregularities can be detected. The greater the likelihood that they can be resolved in a satisfactory

manner and the sooner preventive measures can be instituted.

57

Q. 1) Gender:

Table No -1:

S.NO OPTIONS No. of Respondents % of Respondents

1 Male 114 38%

2 Female 186 62%

3 Total 300 100%

Graph No-1:

Interpretation: It can be seen from the table no.1, out of the total respondents 38% of the respondents are males,

62% of the respondents are females.Most of the respondents are females.

58

Q. 2) Age of the respondents:

Table No-2:

Graph No-2:

Interpretation:

It can be interpreted from the table no.2,out of the of the total respondents 20% of the respondents

age is 13-19 years ,60% of the respondents are 20-30 years,13% of the respondents are 30-40

years ,6% of the respondents are 40-50 years and only 1% of the respondents are above 50 years age.

Most of the respondents age group is 20-30 years.

59

S.NO OPTIONS No. of Respondents % of Respondents1 13-19 years 61 20%2 20-30years 180 60%3 30-40years 38 13%4 40-50years 17 6%5 Above 50years 4 1%6 Total 300 100%

Q.3) Occupation:

Table No-3:

sssS.no OptionsoOccupation No.of Respondents % % of Respondentsdents

1 Unemployed/Students 98 33%

2 Employed 132 44%

3 Business People 70 23%

4 Total 300 100%

Graph No-3:

Interpretation:

It can be observed from the table no.3,out of the of the total respondents 33% respondents are Unemployed/students ,44% respondents are Employed and 23% respondents are Business people .Most of the respondents are Employed.

60

Q. 4) Education of Respondents:

Table No-4:

S.no Options No.of respondents %of Respondents

1 Primary Education 6 2%

2 Secondary Education 29 10%

3 Higher Secondary/Diploma/ITI 51 17%

4 Graduation( UG) 110 37%

5 Post graduation( PG) 92 31%

6 Higher than PG 12 4%

7 Total 300 100%

Graph No-4:

Interpretation:

It can be seen from the table no.4,out of the of the total respondents 2% of the respondents education

is primary education ,10% of the respondents education is secondary education,,17% of the

respondents are higher secondary education ,37% of the respondents are graduates,31% of the

respondents are post graduates and 4% of the respondents education is higher than Pg.Most of the

respondents age Graduates.

61

Q 5) Income of the Respondents:

Table No-5:

Graph No-5:

Interpretation: It can be observed from the table no.5, out of the total respondents 1% of the respondents annual

income level less than Rs.15,000/- , 8% of the respondents annual income level Rs.15,000/- -

Rs.30,000/-, 30% of the respondents annual income levels between Rs.30,000/- and Rs.50,000/-,

61% of the respondents annual income levels are above Rs.50,000/-.Most of the respondents are

more than Rs.50,000/- annual level income customers.

62

S.no Options Respondents %of Respondents

1 Less than Rs.15000/- 3 1%

2 Between Rs.15000/-and Rs.30000/- 23 8%

3 Between Rs.30000/-and Rs.50000/- 90 30%

4 More than Rs.50000/- 184 61%

5 Total 300 100%

Q.6) Size of the family:

Table No-6:

S.no Options No of Respondents % of Respondents

1 Two 28 9%

2 Three 45 15%

3 Four 119 40%

4 Five 69 23%

5 Six 39 13%

6 Total 300 100%

Graph No-6:

Interpretation:

It can be interpreted from the table no.6,out of the of the total respondents 9% of the respondents family

size is two ,15% of the respondents family size is three,40% of the respondents family size is

four,23% of the respondents family size is five,13% of the respondents family life cycle is six. Most

of the respondents family size is four.

63

Q.7) Frequency of Shopping:

Table No-7:

S.no Options No.of Respondents %of Respondents

1 Daily 5 2%

2 Weekly 52 17%

3 Biweekly 64 21%

4 Monthly 39 13%

5 Bimonthly 88 29%

6 as per requirement 52 17%

7 Total 300 100%

Graph No-7:

Interpretation:

It can be seen from the table no.7, out of the of the total respondents 2% of the respondents shopping

frequency is Daily,17% of the respondents shopping frequency is Weekly,21% of the respondents

shopping frequency is Biweekly,13% of the respondents shopping frequency is Monthly,29% of the

respondents shopping frequency is Bimonthly, 17% of the respondents shopping frequency is as per

their requirement. Most of the respondents do shopping bimonthly.

64

Q.8) most preferred time of shopping:

Table No-8:

S.no Options No.of respondents % Of Respondents

1 First week of month 128 43%

2 2nd week of month 89 30%

3 Lastweek of month 32 11%

4 As per requirement 51 17%

5 Total 300 100%

Graph No-8:

Interpretation:

It can be observed from the table no.8,out of the of the total respondents are 43% of the respondents

preferred time of shopping is First week of month,30% of the respondents prefers to shop in 2nd week

of the month ,11% of the respondents prefer to shop on Last week of the month ,17% of the

respondents prefer to shop as per their requirement. Most of the respondents prefer to shop on first

week of the month.

65

9) Amount spent for month:

Table No-9:

S.no Options No.of Respondents %of Respondents

1 Less than Rs.1000/- 39 13%

2 Between Rs.1000/-toRs.5000/- 152 51%

3 Between Rs.5000/-toRs.10000/- 61 20%

4 More than Rs.10000/- 48 16%

5 Total 300 100%

Graph No-9:

Interpretation:

It can be interpreted from the table no.9,out of the of the total respondents are 13% of the respondents

spent Less than Rs.1000/- for shopping, 51% of the respondents spent between Rs.1000/- - Rs.5,ooo

for shopping, 20% of the respondents spent between Rs.5,000/- - Rs.10,ooo for shopping,16% of the

respondents spent more than Rs.,10000/-for shopping. Most of the respondents spent between

Rs.1000/- - Rs.5,ooo for shopping.

66

10) Distance from outlet:

Table No-10:

S.no Options No.of Respondents %Of Respondents

1 Less than 1 k.m 62 21%

2 Between 1k.m-3 k.m 82 27%

3 Between 3k.m-5 k.m 102 34%

4 5 k.m-10 k.m 43 14%

5 More than 10 k.m 11 4%

6 Total 300 100%

Graph No-10:

Interpretation:

It can be seen from the table no.10,out of the of the total respondents are 21% of the respondents are

Less than 1km distance from outlet, 27% of the respondents are between 1km-3km distance from

outlet, 34% of the respondents are between 3km-5km distance from outlet, 14% of the respondents

are between 5km-10km distance from outlet and 4% of the respondents are more than 10km distance

from outlet. Most of the respondents are between 3km-5km distance from outlet.

67

11) Family Lifecycle Stage:

Table No-11:

S.no Options No.of respondents %of Respondents1 Younge couple with no children 28 9%2 Couple with Children 79 26%3 Couple with working Children 69 23%4 Old couple working children with kids 34 11%5 Old couple staying away from children 29 10%6 Any other 61 20%7 Total 300 100%

Graph No-11:

Interpretation:

It can be observed from the table no.11,out of the of the total respondents are 9% of the respondents family life cycle stage is Young couple with no children, 26% of the respondents family life cycle stage is couple with children, 23% of the respondents family life cycle stage is couple with working children, 11% of the respondents family life cycle stage is old couple working children with kids, 10% of the respondents family life cycle stage is old couple staying away from children , and 20% of the respondents family life cycle stage is any other. Most of the respondents family life cycle stage is couple with children.

68

12) Number of product categories available in the store are good?

Table No-12:

S.no Options No.of Respondents % of Respondents1 Strongly agree 66 22%2 Agree 152 51%3 Slightly agre 44 15%4 Disagree 38 13%5 Strongly disagree 0 0%6 Total 300 100%

Graph No-12:

Interpretation:

It can be interpreted from the table no.12, out of the of the total respondents are 22% of the

respondents are strongly Agreed, 51% of the respondents are Agreed, 15% of the respondents

are slightly agreed, 13% of the respondents are Disagreed, no one of the respondents are

Strongly Disagreed with that the Number of product categories available in the store are

good .Most of the respondents are Agreed with this statement

.

69

13) I know where the category is starting on the shop floor .

Table No-13:

S.no Options No.of Respondents % of Respondents1 Strongly agree 31 10%

2 Agree 141 47%

3 Slightly agree 77 26%

4 Disagree 46 15%

5 Strongly disagree 5 2%

6 Total 300 100%

Graph No-13:

Interpretation:

It can be seen from the table no.13, out of the of the total respondents are 10% of the

respondents are strongly agreed, 47% of the respondents are Agreed, 26% of the respondents

are slightly agreed, 15% of the respondents are Disagreed, 2% of the respondents are Strongly

Disagreed with the question “I know where the category is starting on the shop floor”.Most of

the respondents are Agreed to this question.

70

14) I know where the category is ending on the shop floor.

Table No-14:

Graph No-14:

Interpretation:

It can be observed from the table no.14, out of the of the total respondents are 10% of the

respondents are strongly agreed, 44% of the respondents are Agreed, 29% of the respondents

are slightly agreed, 15% of the respondents are Disagreed, 2% of the respondents are Strongly

Disagreed with the question “I know where the category is ending on the shop floor”. Most of

the respondents are agreed to this question.

15) There is a good identification /Signage boards about categories which are available.

71

S.no Options No.of Respondents %of Respondents1 Strongly agree 31 10%2 Agree 131 44%3 Slightly agree 87 29%4 Disagree 46 15%

5 Strongly agree 5 2%6 Total 300 100%

Table No-15:

Graph No-15:

Interpretation:

It can be interpreted from the table no.15, out of the of the total respondents are 9% of the

respondents are strongly agreed, 26% of the respondents are Agreed, 46% of the respondents

are slightly agreed, 16% of the respondents are Disagreed, 3% of the respondents are Strongly

Disagreed with the Identification/Signage boards about categories which are available are good.

Most of the respondents are agreed to this.

16) There are clear price tags on each product on a category.

Table No-16:

72

S.no Options No.of Respondents %of Respondents1 Strongly agree 26 9%

2 Agree 78 26%

3 Slightly agree 138 46%

4 Disagree 49 16%

5 Strongly disagree 9 3%

6 Total 300 100%

Graph No-16:

Interpretation:

It can be seen from the table no.16, out of the of the total respondents are 1% of the

respondents are strongly agreed, 19% of the respondents are Agreed, 49% of the respondents

are slightly agreed, 29% of the respondents are Disagreed, 5% of the respondents are Strongly

Disagreed with that the price tags on each product of each category are good. Most of the

respondents are slightly agreed with this.

17) There are good numbers of brands available in each category.

Table No-17:

73

S.no Options No.of Respondents %of Respondents1 Strongly agree 3 1%2 Agree 56 19%3 Slightly agree 148 49%4 Disagree 88 29%5 Strongly disagree 15 5%7 Total 300 100%

Graph No-17:

Interpretation:

It can be observed from the table no.17, out of the of the total respondents are 30% of the

respondents are strongly agreed, 51% of the respondents are Agreed, 15% of the respondents

are slightly agreed, 4% of the respondents are Disagreed, no one of the respondents are

Strongly Disagreed with that there are good number of brands available in each category. Most

of the respondents are agreed with this.

18) The products in each category are arranged in a systematic manner like price wise,brand wise,quantity wise etc.

Table No-18:

74

S.no Options No.of Respondents %of Respondents1 Strongly agree 89 30%2 Agree 153 51%3 Slightly agree 46 15%4 Disagree 12 4%5 Strongly disagree 0 0%6 Total 300 100%

Graph No-18:

Interpretation:

It can be interpreted from the table no.18, out of the of the total respondents are 8% of the

respondents are strongly agreed, 26% of the respondents are Agreed, 38% of the respondents

are slightly agreed, 24% of the respondents are Disagreed, 4% of the respondents are Strongly

Disagreed with that there are good number of brands available in each category. Most of the

respondents are slightly agreed with this.

19) The store provides all required product categories as far as my needs and wants are concern.

Table No-19:

75

S.no Options No.of Respondents %of Respondents1 Strongly agree 23 8%

2 Agree 79 26%

3 Slightly agree 115 38%

4 Disagree 72 24%

5 Strongly disagree 11 4%

6 Total 300 100%

Graph No-19

Interpretation:

It can be seen from the table no.19, out of the of the total respondents are 27% of the

respondents are strongly agreed, 52% of the respondents are Agreed, 14% of the respondents

are slightly agreed, 7% of the respondents are Disagreed, no one of the respondents are

Strongly Disagreed with that there are good number of brands available in each category. Most

of the respondents are agreed with this.

20) The space available for customer shopping in the outlet is according to the number of categories available in the outlet .

Table No-20:

76

S.no Options No.of Respondents %of Respondents1 Strongly agree 81 27%

2 Agree 156 52%

3 Slightly agree 43 14%

4 Disagree 20 7%

5 Strongly disagree 0 0%

6 Total 300 100%

Graph No-20:

Interpretation:

It can be observed from the table no.20, out of the of the total respondents are 12% of the

respondents are strongly agreed, 20% of the respondents are Agreed, 37% of the respondents

are slightly agreed, 23% of the respondents are Disagreed, 7% of the respondents are Strongly

Disagreed with that The space available for customer shopping in the outlet is according to the

number of categories available in the outlet . Of the respondents are slightly agreed with this.

21) All products in the categories are accessible for the customer.

Table No-21:

77

S.no Options No.of Respondents %of Respondents1 Strongly agree 36 12%2 Agree 60 20%3 Slightly agree 112 37%4 Disagree 70 23%5 Strongly disagree 22 7%6 Total 300 100%

Graph No-21:

Interpretation:

It can be interpreted from the table no.21, out of the of the total respondents are 7% of the

respondents are strongly agreed, 25% of the respondents are Agreed, 48% of the respondents

are slightly agreed, 19% of the respondents are Disagreed, 2% of the respondents are Strongly

Disagreed with that the space available for customer shopping in the outlet is according to the

number of categories available in the outlet .Most of the respondents are agreed with this.

22) There is a mechanism in the outlet which notices the categories which are required by the customer but unavailable in the store.

Table No-22:

78

S.no Options No.of Respondents %of Respondents1 Strongly agree 20 7%

2 Agree 74 25%

3 Slightly agree 145 48%

4 Disagree 56 19%

5 Strongly disagree 5 2%

6 Total 300 100%

Graph No-22:

Interpretation:

It can be seen from the table no.22, out of the of the total respondents are 7% of the

respondents are strongly agreed, 14% of the respondents are Agreed, 20% of the respondents

are slightly agreed, 44% of the respondents are Disagreed, 15% of the respondents are Strongly

Disagreed with that There is a mechanism in the outlet which notices the categories which are

required by the customer but unavailable in the store.Most of the respondents are Disagreed

with this.

23) Effective Category Management motivates the customer to shop in an outlet.

Table No-23:

79

S.no Options No.of Respondents %of Respondents1 Strongly agree 22 7%

2 Agree 41 14%

3 Slightly agree 61 20%

4 Disagree 132 44%

5 Strongly disagree 44 15%

6 Total 300 100%

Graph No-23:

Interpretation:

It can be observed from the table no.23, out of the of the total respondents are 23% of the

respondents are strongly agreed, 40% of the respondents are Agreed, 26% of the respondents

are slightly agreed, 9% of the respondents are Disagreed, 3% of the respondents are Strongly

Disagreed with that There is a mechanism in the outlet which notices the categories which are

required by the customer but unavailable in the store.Most of the respondents are agreed with

this.

24) Effective Category Management retains the customer with an outlet.

Table No-24:

80

S.no Options No.of Respondents %of Respondents1 Strongly agree 68 23%

2 Agree 120 40%

3 Slightly agree 77 26%

4 Disagree 26 9%

5 Strongly disagree 9 3%

6 Total 300 100%

Graph No-25:

Interpretation:

It can be interpreted from the table no.24, out of the of the total respondents are 32% of the

respondents are strongly agreed, 42% of the respondents are Agreed, 17% of the respondents are

slightly agreed, 7% of the respondents are Disagreed, 2% of the respondents are Strongly Disagreed

with that The Effective Category Management retains the customer with an outlet.Most of the

respondents are agreed with this.

25) Overall Category Management in the outlet is good.

Table No-25:

81

S.no Options No.of Respondents %of Respondents1 Strongly agree 97 32%

2 Agree 125 42%

3 Slightly agree 51 17%

4 Disagree 21 7%

5 Strongly disagree 6 2%

6 Total 300 100%

Graph No-25:

Interpretation:

It can be seen from the table no.25, out of the of the total respondents are 18% of the

respondents are strongly agreed, 49% of the respondents are Agreed, 25% of the

respondents are slightly agreed,7% of the respondents are Disagreed ,1% of the respondents

are Strongly Disagreed with that The Overall Category Management in the outlet is good.

Most of the respondents are agreed with this.

82

S.no Options No.of Respondents %of Respondents1 Strongly agree 53 18%

2 Agree 148 49%

3 Slightly agree 75 25%

4 Disagree 21 7%

5 Strongly disagree 3 1%

6 Total 300 100%

CHAPTER-VI

SUMMERY

FINDINGS

SUGGESTIONS

ANNEXURES

BIBLIOGRAPHY

SUMMARY

83

Category management is a retailing and purchasing concept in which the range of products

purchased by a business organization or sold by a retailer is broken down into discrete groups of similar

or related products; these groups are known as product categories.

Here the need of this study is to know what the customers of big bazaar are perseving about the

category management in the store. And impact of category management on customers purchase. When

a customer is making a buying decision on a specific product of a category whether he is looking correct

product, price, large assortments.

Because company following category management to influence the customers to make a buying

decision, where my study is to know how much impact making a buying decision and what elements

looking for in a category management to attract customers towards a product of a particular category.

To study how customers reacts towards the category management in bigbazaar, kachiguda. To

study category management influence on customers to make a decision. To find out which element is

need to get most customer attention. To know that is category management really impact on customer

buying decisions. To know to what extent category management helps in increasing sales.

Primary data is the new or fresh data collected from the respondents through direct

interview using a pre-structured questionnaire. Secondary data may be obtained from many sources,

including literature, industry surveys, compilations from computerized databases and information

systems, and computerized or mathematical models of environmental processes.

84

Most of the customers in the big bazaar are female customers, most of the respondents age

group is 20-30 years, most of the respondents are employed and graduates, and their family income is

more than Rs.50,000/-.they shop bimonthly, their preferred time of the shopping is First week of the

month with spending amount between Rs.1,000 –Rs.5,000.And most of the customers come within the

distance of 3km-5km.

Most of the customers agreed that the number of product categories available in the kachiguda

big bazaar is good. Most of the customers of big bazaar know that know where the category is starting

and ending on the shop floor. There are good identification / Signage boards about categories which are

available in the big bazaar kachiguda.But, the price tags on the products are not much good. Sometimes

price of the product becomes change at the time of billing instead of the discount price given on the

product. There are good numbers of brands available in each category, products in each category are

arranged in a systematic manner like price wise, brand wise, quantity wise etc. The Store provides all

required product categories as far as customer needs and wants are concern. All products in the

categories are accessible for the customer. Effective Category Management motivates the customer to

shop in an outlet and retains the customer with the outlet. And finally we can conclude that the overall

category management in Kachiguda big bazaar store is good and effective.

85

FINDINGS

Majority of the respondents are females.

Majority of the respondents are in the age between 20-30 years.

Majority of the respondents are Employed.

Majority of the respondents are graduates.

Majority of the respondents income is more than Rs.50,000/-

Majority of the respondents are with the family size of 4 members.

Majority of the respondents come for shopping Bimonthly.

Majority of the respondents most preferred of shopping is First week of the month.

Majority of the respondents spend the amount between Rs.1,000/- to Rs.5,000/-

Majority of the respondents reside with the distance between 3km-5km from the outlet.

Majority of the respondents Family lifecycle stage is couple with children.

Majority of the respondents Agreed that the number of products available in the

kachiguda store are good.

Majority of the respondents agreed to that they know where the category is starting and

ending on the shop floor.

Majority of the respondents are slightly agreed that there is a good identification/signage

boards about categories which are available in the store.

Majority of the respondents are slightly agreed that there are clear price tags on each

product on a category in the store.

Majority of the respondents agreed that there are good numbers of brands are available

in each category.

Majority of the respondents are slightly agreed that the products in each category are

arranged in a systematic manner like price wise, brand wise, quantity wise etc.

Majority of the respondents are agreed that the store provides all required product

categories as far as my needs and wants are concern.

86

Majority of the respondents are slightly agreed that the space available for customer

shopping in the outlet is according to the number of categories available in the outlet.

Majority of the respondents are slightly agreed that all the products in the categories are

accessible for the customer.

Majority of the respondents disagreed that there is a mechanism in the outlet which

notices the categories which are required by the customer but unavailable in the store.

Majority of the respondents agreed that the effective category management motivates the

customer to shop in an outlet.

Majority of the respondents agreed that Effective category management retains the

customer with an outlet.

Majority of the respondents agreed that the overall category management in the outlet is

good.

87

SUGGESTIONS Clear price tags on each product on a category in the store should be maintained. So

that the customer can take buying decision.

Allowing more space between the entrance of a store and a product gives it more

time in the shopper’s eye as he or she approaches it. It builds a little visual

anticipation towards the specific category.

Most respondents take on the spot decision of buying different products because of the

various attractive products displays. So pretty combination with good services should be

done to retain customers.

Arrange the products in each category in a systematic manner like price wise, brand

wise, quantity wise etc. to attract customers towards a specific product category.

88

ANNEXURE

89

A STUDY ON CATEGORY MANAGEMENT IN KACHIGUDA BIGBAZAAR

Socio-Economic Profile

S.No. Variable Categories Please TICK [ √ ]

1 Gender Male  Female  

2 Age

13 - 19 years  20 - 30 years  31 - 40 years  41 - 50 years  above 50 years  

3 OccupationUnemployed / Students  Employed  Business people  

4 Education

Primary Education  Secondary Education  Higher Secondary / Diploma / ITI  Graduation (UG)  Post Graduation (PG)  Higher than PG  

5 Income

Less than Rs.15,000/-  Between Rs.15,000/- and Rs.30,000/-  

Between Rs.30,000/- and Rs.50,000/-  

More than Rs.50,000/-  

6 Size of Family

Two  Three  Four  Five  Six  

90

Shopping Behavior of Customers

S.No. Variable Categories Please TICK [ √ ]

7Frequencyof shopping

Daily  Weekly  Biweekly  Monthly  Bimonthly  as per requirement  

8

Most preferred Time of shopping

first week of month  2nd week of month  last week of month  as per requirement  

9amount spent per month

less than Rs.1000/-  between Rs.1000/- to Rs.5000/-  

between Rs.5000/- to Rs.10000/-  

more than Rs.10000/-  

10distance from home to outlet

less than 1 k.m.  

between 1 k.m. - 3 k.m.  

between 3 k.m. - 5 k.m.  

5 k.m. - 10 k.m.  

more than 10 k.m.  

11Family Life CycleStage

Young Couple with no children  

Couple with children  

Couple with working children  Old Couple-working children with kids  

Old Couple staying away from children  

91

Please TICK [ √ ] in any appropriate box

S.No. Category Management Practices Strongly

Agree Agree SlightlyAgree Disagree Strongly

Disagree

12 The number of product categories available in the store is good.          

13 I know where the category is starting on the shop floor.          

14 I know where the category is ending on the shop floor.          

15There is a good identification / Signage boards about categories which are available.          

16 There are clear price tags on each product in a category.          

17 There are good numbers of brands available in each category.          

18

The products in each category are arranged in a systematic manner like price wise, brand wise, quantity wise etc.          

19The Store provides all required product categories as far as my needs and wants are concern.          

20

The space of available for customer shopping in the outlet is according to the number of categories available in the outlet.          

21 All products in the categories are accessible for the customer.          

22

There is a mechanism in the outlet which notices the categories which are required by the customer but unavailable in the store.          

23Effective Category Management motivates the customer to shop in an outlet.

24Effective Category Management retains the customer with an outlet.

25 Overall Category Management in the outlet is good.

92

BIBLIOGRAPHY

References:

Philip Kotler, marketing management,

Research design,

(Prentice hall of India pvt. 5th edition)

o Berman B and Evans J.R, Retail Management

(Pearson education, 10th edition

o Service Marketing by M.K Rampal

o Integrated service marketing (4th edition) by Zeithmal

Internet web sites:

bigbazaar.co.in

literature review on bigbazaar.com

retailseminar.in

organizedretail.co.in

google.com

www.futuregroup.com

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