Retail store visit report as a part of Retail management by manpreet Singh digital

1. RETAIL MANAGEMENT
2014
Retail Store Visit
Big Bazaar, Kalyan
Manpreet Singh
U N I V E R S A L B U S I N E S S S C H O O L

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Table of Contents
Map to Reach Big Bazaar, Kalyan 4
Retail Industry in India, a Snapshot 5
About Big Bazaar 7
Measuring the Segments 9
Target segments 10
Brand Image & Positioning of Big Bazaar 11
Socio-Economic importance of Big Bazaar in Kalyan 12
Objectives For the visit, analyzing type of store, Layout,
Merchandise mix 14
Layout Map 17
Marketing Mix 22
Supply chain Management at Bigbazaar 24
Modern technology deployed by retailer 27
Strategic Drivers of growth in retail industry 31
Conclusion 37
Biblography 38
Page No.

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Big Bazaar , Metro mall Kalyan

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How to reach, Big Bazaar, Kalyan.

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Retail Industry in India
India is the 5th
largest retail market in the world. The country ranks fourth among the surveyed
30 countries in terms of global retail development. The current market size of Indian retail
industry is about US$ 500 bn and is expected to grow at the rate of 15-20% p.a. The retail
industry is expected to increase to US$ 750-850bn by 2015. Retailing has played a major role
the world over in increasing productivity across a wide range of consumer goods and services.
In the developed countries, the organized retail industry accounts for almost 80% of the total
retail trade. In contrast, in India organized retail trade accounts for merely 8-10% of the total
retail trade. This highlights a lot of scope for further penetration of organized retail in India. The
industry is moving towards a modern concept of retailing. “Demand from international and
domestic brands as well as retailers continued to strengthen throughout 2013; with the second
half of the year witnessing an increase in demand for quality retail space in Delhi NCR, Pune and
Chennai,” according to the findings of CBRE’s latest report, India Retail Market View H2 2013.
The sector can be broadly divided into two segments: Value retailing, which is typically a low
margin-high volume business (primarily food and groceries) and Lifestyle retailing, a high
margin-low volume business (apparel, footwear, etc). The sector is further divided into various
categories, depending on the types of products offered. Food dominates market consumption
with 60% share followed by fashion. The relatively low contribution of other categories
indicates opportunity for organized retail growth in these segments, especially with India being
one of the world's youngest markets
Transition from traditional retail to organized retail is taking place due to changing consumer
expectations, growing middle class, higher disposable income, preference for luxury goods, and
change in the demographic mix, etc. The convenience of shopping with multiplicity of choice
under one roof (Shop-in-Shop), and the increase of mall culture etc. are factors appreciated by
the new generation. These factors are expected to drive organized retail growth in India over
the long run.
Market Size
India’s retail market is expected to touch a whopping Rs 47 trillion (US$ 782.23 billion) by 2016–
17, expanding at a compounded annual growth rate (CAGR) of 15 per cent, according to a study
by a leading industrial body.
The total organized retail supply in 2013 stood at approximately 4.7 million square feet (sq ft),
witnessing a strong year-on-year (y-o-y) growth of about 78 per cent over the total mall supply
of 2.5 million sq ft in 2012.
The foreign direct investment (FDI) inflows in single-brand retail trading during the period April
2000–January 2014 stood at US$ 98.66 million, as per data released by Department of
Industrial Policy and Promotion (DIPP).

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Market Highlights
0 1 2 3 4 5 6
2004
2006
2008
2010
2012
Market Size
Amount('00 Bn $)
21%
19%
14%
10%
8%
9%
8%
10%
Mall Space Breakup
Hypermarkets
Apparel Stores
Multiplexes
Department stores
Footwear
Restaurents
Mobile stores
Jewellary
60%
8%
6%
5%
4%
3%
14%
Market Breakup
Food & groc
Appareal
Mobile & Telecom
Food services
Jewellery
Consumer Electronics
Pharmacy, Others
By 2012, the total market size reached US$ 518 billion, thereby registering a compound annual growth rate (CAGR) of 7
per cent since 1998.
Hypermarkets would be the largest retail segment, accounting for 21 per cent of total retail space by 2014–15.
In 2013, Food and Grocery accounted for nearly 60 per cent of total revenues in the retail sector.

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About Big bazaar
Big Bazaar is the largest hypermarket chain in
India. As of April 16, 2014 there are 267 stores across 90 cities and towns in India covering
around 17 mn sq.ft. of retail space. Big Bazaar is designed as an agglomeration of bazaars or
Indian markets with clusters offering a wide range of merchandise including fashion and
apparels, food products, general merchandise, furniture, electronics, books, fast food and
leisure and entertainment sections.
Big Bazaar stores are aimed at providing a local marketplace feel to the shoppers. They offer a
wide variety of household items including retail apparels, food products, general merchandise,
furniture, electronics, books, fast food, etc. Several stores also have leisure and entertainment
sections. The hypermarket chain crossed the 100 store mark in 2008.
Owned by the Future Group, the idea was pioneered by entrepreneur Kishore Biyani, the head
of Future group India. It follows the business
model of US based Walmart. Big bazaar is a
hypermarket format that combines the look,
touch & feel of Indian bazaars with the choie
& convenience of modern retail. The idea
from the very beginning was to make Big
Bazaar very comfortable for the Indian
customer. That was Kishore Biyani’s strength
as a retailer. He had a lot of confidence in what he was doing, even though it defied
conventional logic.
Big bazaar is not just another hypermarket. It caters to every need of your family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers. At
Big Bazaar, you will definitely get the best products at the best prices - that’s what they
guarantee. With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just the
beginning. Big Bazaar plans to add much more to complete their customers shopping
experience.
If one looks at Indian bazaars, mandis, melas, they are environments created by traders to give
shoppers a sense of moment, of event, of place. They provide an inclusive environment where
men and women from all castes, creeds and classes can come and shop at the same place. The
founders of Big Bazaar were from the beginning very clear that they had to reflect the look and
feel of Indian bazaars at their modern outlets, so that no customer would feel intimidated with
the surroundings.

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In India most of us are not prepared for the consumerism that is setting in this country. We
underestimate how many people are going to fly and that s why our airports get crowded. We
underestimate how many people will speak on the phone for how many billions of minutes and
therefore our cell phone networks are always congested. But the minds responsible for the
huge success of Big Bazaar have captured and understood the force of consumerism that is
unfolding.
Big Bazaar’s all over India attract a few thousand customers on any regular day, and a lot more
if they are offering something extra on each buy, which they normally are! And the sales force
at Big Bazaar along with the executives is prepared for them.

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Measuring the Segments
According to Kishore Biyani's 3-C theory, Change and Confidence among the population is
leading to rise in Consumption, through better employment and income.[3]
Big Bazaar has
divided India into three segments:
 India one: The Consuming class which includes upper middle and lower middle class
 India two: The Serving class which includes people like drivers, household helps, office
persons, liftmen, and washer men and
 India three: The Struggling class
Big Bazaar targets higher and upper middle class customers because there has been growth in
Indian middle class that has so far been used to buying apparel and groceries from small and
cluttered neighborhood market shops is fast realizing the joys of visiting malls that have
redefined the freedom to shop and entertain. Such malls are the new temples of leisure and
weekend entertainment. India’s National Council for Applied Economic Research estimates that
the Nation currently comprises 245.4 million households with 46.7 Mn households as High
income group & 109Mn households as Middle income group an additional 20 million could be
termed as ‘aspirers’ or those that hope to join the middle class in the near term. Rising
incomes, particularly in the lower and middle-income households, are impacting retail growth
in India as these groups tend to spend more on upgrading and diversifying their lifestyles,
eating out and moving on to processed and convenience foods.
14%
55%
31%
Big bazaar Segment Breakups
India One
India Two
India Three
46.7
190.7
41
No. of Households in
Millions
HIG
MIG
LIG 167.8
78.8
Households in million
Rural
Urban

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Target Segments
The large and growing young working population is a preferred customer segment for Big
bazaar. These young people are early adopters of most modern product lines.
The ongoing boom in sectors such as information technology and business process outsourcing
has created a clientele with high disposable income and a increased demand for lifestyle
merchandise such as watches, cosmetics and perfumes. This is a much-travelled and brand-
savvy urban population. Interestingly, an estimated 40-50% of the Indian working woman’s
salary is spent on apparel and footwear. Eating out, mobile phones and accessories make up
the other leading spending options. Big Bazaar specifically target young, working professionals,
home makers who are primary decision maker.
18.4%
27.6%
13.5%
40.5%
Age wise Population breakup of India
15-24 Yrs
25-44 Yrs
45-64 Yrs
Other
Yearly Income of Different Groups(INR)
HIG 5 Lacs+
MIG 1 to 5 Lacs
LIG Less than 1 Lac
Total Population is 1.25 Bn (2011 Census)

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Brand Image
“Is se sasta aur accha kahin nahi” Nothing captures the spirit of Big Bazaar better than this one
liner. It is a simple statement and yet it positioned at the top of Indian customers mind. It
shows that big bazaar was built on the foundation of entrepreneurship and simplicity. They
believe in service and value for the customers. They consider that it is their only duty to keep
customer in mind at every step; they go that extra mile and buy directly from source in bulk so
that they can get best rates by keeping the margin low
Big Bazaar is constantly on the lookout for finding new ways and means to improve the current
state of affairs. Thus, innovation is a very important aspect of their working strategy. The other
very important philosophy is that of Indianness. All the concepts and formats as well as the way
of doing things are very Indian. The way Big Bazaar is designed and the way the whole concept
has developed reflects a sense of Indianness.
Positioning Of BigBazaar
High PriceLow Price
Many services
Very Less Services

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Socio-Economic Importance of Big-Bazaar, Kalyan
In a category with sparse mainline advertising, Big Bazaar is looking to make a splash. The
discount retailer, which has spent the last three years trying to re-position itself as a more hip
and trendy chain, will flood TV screens and social media with a 52-week campaign pushing
everything from linen shirts to women's denim and induction cookers to chocolates.
With more than 24 stores in Mumbai, Bigbazaar is the only Hypermarket of such scale in Kalyan
& immediate nearby area. Located in the biggest Mall & center of Kalyan, it enjoys more than
1000 footfalls daily. With its innovative offers & schemes like “Wednesday bazaar”, “Sabse
saste 5 Din”, it has been able to attract customers in huge quantity. Also the Population type of
Kalyan region synchronizes well with Big Bazaar’s target audience. Below is the target statistics
of population of Kalyan
.
Advantages Enjoyed by BigBazaar in Kalyan.
 First Mover advantage as they are only hypermarket of such scale in Kalyan
 Located in Middle of region, So Easily accessible
 Kalyan is a commercial area so lots of working class people come and go through Kalyan
 Close to suburbs like Karjat, Badlapur, Dombivali, Vithalwadi, Ulhasnagar, Ambernath
etc, so enjoys the traffic from these areas too.
 Metro Central mall is the biggest & most popular mall in the area
 Located in three levels in the mall, so lots of available space
 Good arrangements of parking in the mall
 Located close to inox movie theatre, The only good quality movie theatre of the area
14%
52%
34%
Kalyan Population
BreakUp Income wise
HIG
MIG
LIG
19%
36%11%
34%
Population Breakup of
Kalyan Age wise
15-24 Yrs
25-44 Yrs
45-64 Yrs
Other
Total Population is 1.25 Million (2011 census)

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As every coin has two sides, So is the state with Bigbazaar. There are some disadvantages too.
The disadvantages are stated below
 Area is still underdeveloped
 Traffic jams are common in the area
 High advertising costs
 High Rental & maintenance charges.
 High competition from local retailers of different categories
Retail industry forms 1/6th
of Indian gdp, with big bazaar contributing almost 7% to retail
industry. The trend is common all over the country with some spikes in some areas, Big bazaar
is expanding very fast.

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Objectives for the visit
Following the 3E model of Universal business school, where one of the three ‘E’ is experiential
learning, we got a chance to visit the big Bazaar, Kalyan store, As a part of retail management
Module. The main objectives of the visit was to understand the intricacies of Retail stores, Their
operations, Their way of interactions, Their way of displaying their Products. Below is the list of
our objectives for the visit. To learn:-
 Merchandise assortmement
 Location, Layout
 Visual merchandising
 Store atmosphere
 Customer service
 Advertising
 Promotion
Merchandise Assortment
Most Big Bazaar outlets are multi-leveled stores and are located in stand-alone buildings in city
centers as well as within shopping malls. These stores have more than 2,00,000 Stock Keeping
Units (SKU) in a wide range of categories, led primarily by fashion and food products. The retail
space of these stores in the metros range between 50,000 and 1,60,000 sq. ft.
Following he tradition, Bigbazaar store in Kalyan is a three level store with appx 2,20,000 SKUs
in wide range of catagories covering almost 1,20,000 Sq.Ft of area.
Range of merchandise they have were both branded and unbranded products like:
Product Mix
Electtronics
Bazaar
Fashion &
Jewellery
Furniture
Bazaar
ChildCare &
Toys
Other
Services
Tv sets Footwear
bazaar
Kitchen Kids wear Loot Mart
Washing
Machines
Beauty Care Bedroom Toy Bazaar Bakery
Refrigerators Navratnas Dinning Hall Stationery Future
Money
Personal Care Living Room Child Care Fresh Vegies
mBazaar Decorative
Items
Food
Products
Small Appliances Cosmetics
Laptops Future
Generalli
Kitchen
Appliances

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Store Layout
With more & more researches for analyzing customer behavior these days, Big bazaar deployed
all the The things making their customers spending more every time when they visit their
stores. Items were placed in Grid layout with the corner aisles acquired by Big brands like HUL,
P&G, Nivea, ITC etc. Generally people complain about big bazaar stores being highly
disorganized, To answer this, Kishore Biyani, in his statement said that “BigBazaar stores are
purposely made that way to make the look Populated. This attracts customers even
more.”Products in the aisles were arranged in such a way that, the most costly products in each
category were on the eye height. Second most costly, below the eye level & so on. On e weird
thing noticed was that their own labeled products were kept on the left side of other branded
products instead of doing opposite.
Below are some pictures for the same. Also the layout of each level of store is given.
Own Label

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High Priced Products at Eye Height

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Layouts of all Levels

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In retail environment now more systematic attention is been given to efficient designing of the
store which influences the buying behavior of the customers. Visual merchandising and store
layout are considered as most significant elements of in-store design. Visual merchandising
coordinates stores marketing, positioning and communication strategy. Thoughtful in-store
display creates favorable appearance of the store for the target customer and attracts them
towards products. Effective display provides easy accessibility of product to target customers
and demonstrate the products in a way to make selection process easy for the customers.
Efficient design of the store layout contributes to profitable utilization of store space. Efficiently
designed layout can create enjoying the environment by providing convenient shopping.
Retailers adopt different patterns of store layout to encourage circulation of the customers to
all parts of the store and to provide easy accessibility of merchandising.
The ultimate objective of efficient store design is to increase sales and profit of the store.
Directly or indirectly the elements have some impact on the buying behavior of the customers.
Visual merchandising is considered to create an interest in the customers and create a
favorable image of the store in the mind of the customers. Store layout provides convenience
to customers and makes shopping smooth. Retailers always try to create favorable
psychological impact on customers by designing element of the store in most sophisticated
way. E.g. retailers use graphics with social meanings to associate customers with some life style.
As stated by Kishore Biyani & also stated above, People often complain that Big Bazaar outlets
always look very crowded. But few realize that it is concisely designed to look just like that.
When the shop looks neat and empty, the masses never walk into it. There has to be what is
called the ‘button brush effect’, and an ‘organized chaoses. As Indians, we like bumping into
people, chatting, gossiping and eating while we shop!
Big Bazaar layout consists of layout of long rows of parallel fixtures, with no aisles because
aisles can be boring they restrict space and can’t be dramatized. At Big Bazaar, they create
multiple cluster or mini-bazaars within every store. It was designed as an agglomeration of
bazaars with different sections selling different categories’.
 “It uses space efficiently.
 It provides easy sitting of merchandise and linking of the product throughout the
store.
 It allows more customers in the store at any time.
 Allows staff of the store to work easily alongside the customers without disturbing
them.
 Provide self-service atmosphere

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Interior & Exterior designs
“The interior of the Big Bazaars comprises of the living space of the store which includes
ceiling, walls, flooring and lighting, fixture and fittings” The elements of the interior design are
selected economically. The general design of the interior is in uniform with the exterior.
The interior design of Big bazaar is very vibrant, They have a color combination of vibrant
colors like blue and orange that leave an impression on Indian minds. The interior of big bazaar
is truly designed as Indian hyper market that promises one stop shopping. It is designed as
agglomeration of bazaars with different sections selling different categories
The exterior of Big Bazaar includes the exterior of the stores like the e fascia, entrance of the
store, architectural design of the building and window. The exterior design of Big bazaar is
easily visible from the distance and it can be distinguished from its competitors. The exterior is
attractive enough to encourage customers to enter in to the store. Big bazaar uses harmony
between the elements of the exterior of the store in order to deliver desired store image.
Window display is used as an effective medium to introduce new offerings of the company, so
special attention is given in designing windows of the store. The entrance of the store is
designed to welcome shoppers and to provide easy accessibility.
The external environment of Big Bazaar:
 Big bazaar outlets are located at shopping center, high street or local parade.
The external architecture of Big bazaar building:
 Big bazaar uses a color combination of Orange and Blue

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Services
Big Bazaar provides a wide range of services to its customers like Trial rooms, elevators, car
parking, security, baggage counter, trolleys so that one could shop easily
They even provide them with after sale services in case of buying electronic items. One of the
major services provided by them is one stop shop as one could get a whole range of items
under one shop and at the most reasonable price. They always have their outlets in such a
location where it is easy to commute.
They have also given major emphasis to convince for customers in which layout has played a
major role. The layout of the store is so effective that customers find their way out of what they
want. Big Bazaar provides good employee service i.e their salesmen are always ready to provide
help. Employee service is often neglected as part of good retail marketing but customer and
employee interaction can be used as the significant tool for retail marketing.
Visual merchandising
Visual merchandising at Big Bazaar uses “Store display for promotional purpose, but as
customers are becoming more sophisticated, Big Bazaar has found various techniques for
effective display for providing information and communicating image of the store to the
customers, helping them in taking purchase decision and creating exciting shopping
environment” Big Bazaar not only uses visual merchandising for promoting their product, but
they use it as a significant tool for creating appropriate store environment and influencing
purchase decision of customers.
They use danglers and hoardings at the
entrance of the store as this may be a
deciding element in a consumer’s decision to
enter a store. Various televisions sets were
used as danglers for dynamic promotions. It
uses various visual merchandising like it uses
remarkable window display for creating a
shopping environment as it creates initiative
impression in the mind of customers as
window display also sometimes become a
deciding factor whether to enter the store or
not .
Retailers develop visual merchandising in order to relate customer’s social life with the product,
arouse their personnel interest for the product. “Retailers can use combination of elements of
in store display; such as color, texture, lighting, fixtures, graphics, and signage.”
Big Bazaar also uses an Instore Radio ( The Bigbazaar Radio), which plays songs on customer
demands & Regularly announces the offers

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Marketing Mix
As place & product mix is already explained above, Promotions & Prices are as follows
Promotion
Big Bazaar uses various promotional strategies like the prices on Wednesdays are very low
compared to other retailers, this helps is bringing in a huge number of customers they even
have a concept of “BIG DAY” which means they give huge discounts to their customers on the
26TH
of Jan and on 15TH
August. On such days they come up with promotional offers like bring
old items from your house and take huge discounts and freebies.
They come up with offers like
Wednesday Bazaar
 Special discounts across the full product range.
 Customers buying in bulk are eligible for monthly
draws
Pay 10000, Shop for 12000
 If you are regular customer of big bazaar, You can pay
Rs 10000 & can shop for Rs. 1000 every month for
twelve Months. A handsome saving of Rs 2000
School Jao Khushi Khushi:
 Discounts on all school requirements like school bags, water bottles & lunchboxes.
 lWin a pencil case with every purchase worth Rs. 500 & above
 lSend us your experience of the “Best day that you had in school” – the most humorous
one will get a free shopping trip worth Rs 1,000/-
 lLucky draw – shop for Rs 1,000 & above, drop in your kids name into our drop box – 10
lucky kids will get 30% off on an NIIT course
 lShop for Rs 500 & above, drop in your kids painting the best painting will get sponsored
for an art course.
Khushi ki barsaat:
 “Discounts ki barish” – various discounts across the board
 Special discounts on raincoats & umbrellas
 Lucky Draw – On purchases worth Rs. 1000 & above – drop in your name into our drop
box & you could be one of the 3 families to enjoy the rains in Goa.

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 Purchase goods worth Rs 500 – complete the slogan – I love the rains in Mumbai
because… & win you own customized umbrella – get your friends & family photograph
screen printed on it.
Advertising
Following channels are used for advertising:-
Newspaper: Big Bazaar uses newspaper as one of its media vehicle
because most of the population in urban areas is educated. They
place their full page and half page ads mostly in Times of India or
Hindustan times. They also give their ads in newspaper in rural areas
like “Samna” in local language newspaper
Radio: Radio is another media vehicle used by Big Bazaar in urban
areas “Radio mirchi” is used and in rural areas “All India Radio” is
used widely for placing their ads
T.V: T.V is also used as one of its media vehicle when they come up with huge offers on the
“Big DAYs” like the 26th
Jan and 15th
August.
Prices
The prices at big Bazaar are kept lowest possible in order to attract huge number of customers
they have the lowest prices on Wednesday they are able to do so because they believe in bulk
buying which helps them in buying products at lower possible prices, by which in turn they give
the benefits to customers
“Isse sasta aur accha kahin nahi” is the mantra that they follow and they stick by it while
deciding on the prices of the products that they offer. So much so, that on the days that Big
Bazzar is offering any of its deals the stores all over are flooded with
customers.
For eg. From 21st
to 26th
January of every year, Big Bazaar runs its
promotional offers ;Last year, word about the low prices spread so quickly
that they had an over whelming response because of which a special team
had to be called to manage the crowd. .These 5 days are marked as “SAB
SE SASTe 5 DIN”

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Supply Chain Management at BigBazaar
Procurement in BigBazaar happens from
 Central Distribution Center(CDC)
 Local Vendors
There are about 26 vendors for BigBazaar in Kalyan. The stock in the store is managed bu
Automated replenishment System(ARS). The CDC are located in a strategic position so that it
can easily caters to nearby BigBazaar. For Mumbai, it is located in Jogeshwari (East).
Manufacturer 1
Manufacturer 2
Manufacturer 3
C.D.C
Local Procurement
Local Vendor 1
Local Vendor 2
Local Vendor 3

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Ware House Management
Raising of PO to the vendor by the CDC
Out warding Process at Warehouse
Delivery of Stock to the CDC
Receiving of the stocks after weighing, Counting & generation of IRN
Information is transferred to SAP
Generation Of GRN
Stocks Pilled stored in the warehouse of CDC
PO Generated from Stores to CDC
Out Warding of material from CDC
Receiving of goods at the BigBazaar store.

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Stock after Receiving in store, are arranged in different aisles

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Modern technology deployed by the Big Bazaar in
its operations
There are new technical advances everyday. Big bazaar too has deployed many of those.
Examples of some of them are below
New Management Information systems & ERP
An Information system is a system that takes resources as input and processes them into
information product as output. It is an organized combination of people, hardware, software,
network and data resources. It helps to know details about the daily transaction, To easily
calculate profit and loss, To take decision quick and accurate with the help of MIS, To know the
regularity of the employees. They use a storing device to store all transaction per day.
How it helps?

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Two centralized servers are used by the MIS viz.
 The main server and
 The other a backup server which can take over from the main server with-in 5 min, if
there is any problem.
Each of the servers has its own storage system with mirroring hard disks (15 hard disks storing
the same info simultaneously). The information is backed up continuously on CDs every day.
The entire system is backed by an excellent electrical wiring by JD International (electrical
maintenance dept). There are 15 transaction
counters in Big Bazaar. The recording of transactions
at each of these counters is done using REM. The
database used for the storage is called POSH
database and this is an in-house production of Big
Bazaar. These transaction counters can capture
credit card details and customer information of big
customers (though all the information relating to all
the customers is not collected as of now). Receipts
of transactions are cash, credit or in the form of
Sodexo passes. The Sodexo passes are sent to the
HQ on a monthly basis and converted to cash. The
number of transactions made per day varies from 3000- 4000 on week days to about 5000-
6000 on weekends. Any transaction recorded at each terminal is stored directly onto the POSH
database.
Oracle finance: a package from oracle is used for this purpose. The financials are sent to the
HO on a daily basis.
Billing Counters
How MIS works..

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Instrore Radio & television for dynamic promotions.
World is changing fast & so is BigBazaar & its offers. They use dynamic instore displays & an
instore Radio for promotion. TVs continuously runs informations about various offers available
at bigbazaaar & radio plays songs on customer demands & announces new offers.
Electronic Point-of-Sale System:
An EPOS system is one in which a universal product code (black
and white stripes or barcode) is read by a laser scanner connected
to a computer. On scanning a product, the computer records the
sold items and displays the price of the products to the customer.
Eventually, an itemized bill is generated and given to the customer
as the receipt.
WIFI
As WiFi technology has matured, Big Bazaar is now using wifi both
for its own operations & attracting customers by free wifi. It is an
inexpensive opton for in-store connectivity. The concurrent development
of handhelds has dramatically broadened retailers option for application
delivery. With wiFi enabled devices, applications such as POS, inventory
audit, item lookup, pricing & labour scheduling can be used anywhere on
the sales floor

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Online Retailing
Online retail is future. And bigbazaar is now online. There
portal futurebazaar.com is an online portal where all the
products of bigbazaar are available with no extra charges.
Also all the offers are valid on online store too.
EDI System
EDI is the electronic exchange of data that takes place between the retailer’s computer and that
of his supplier. The exchange consists of orders, delivery notices, invoices, returns and sales
data. Its saves the lead time of deliveries and large savings can be made by the consequent
reduction in inventory required. Given below is the process a business would take have to go
through with and without EDI.
Futuremoney
FutureMoney is a way of electronic fund transfer through Credit/Debit/ATM cards. An EFTPOS
terminal is connected to the retail store on one end
and the other end to multiple banks and credit card
companies. This system enables a customer to use
credit and debit cards for their purchases. It is
convenient for the customer as it is quicker and less
open to fraud. The retailer is happy as he receives his
payment in his account immediately.

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Strategic Drivers of growth in Retail industry
As BigBazaar is a hypermarket, it is into various industries namely, FMCG, FMCD, Apparels,
Jwellery. It will be directly affected by the Strategic drivers in retail industry. Some of the key
strategic drivers of growth for Indian retail are as follows
A. Consumer or Demand-Side Drivers
1. Personal Consumption as a percentage of GDP
• India is only second to Vietnam in Asia,Fourth in the world
• China (~35%), Singapore (~45%), Hong Kong (~50%), South Korea (~46%)

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2. Population as a Growth Driver
 With growing population, more & more adoption of Nuclear Family Culture
 Average Household Size in 1991 : 5.57
 Average Household Size in 2001 : 5.36
 Average Household Size in 2011 : 5.02
 Baby Boomer Effect
 Steep Growth in Earning Population (15-60 yrs)
 335 million people (54 % of total population) in 1975
 593 million people (58.3% of total population) in 2000
 Growth in Earning Population over 25 yrs: 77%
 (CAGR of 2.3%)
 Growth in Indian Population over 25 yrs: 64%
 (CAGR of 2%)
 782 million people (62.8% of total population) will be earning population in 2015
(Expected)
1,000,000
1,050,000
1,100,000
1,150,000
1,200,000
1,250,000
1,300,000
1,350,000
ProjectedPopulation
Year
Projected Total Population

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 Growing Working Women Population
• Working women can spend 1.3 times more
than housewives
• Working women in 2001: 26%
• Working women in 2011: 32%
 Growth in Urban Population
• Urbanization has increased at a rate of 2.7 percent from 1991-2001
• Urban population 2011 : 38.1 crore
• Expected to grow at 2.8%

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 Plastic Money Becoming a Greater Pie of Credit
• India is the second fastest growing Financial Cards
market in the Asia - Pacific region.
• Growth at 30-35% p.a. from 27mn cards in 2007.
• Credit Card Sales: 1.4% in 2010
• Credit Card Sales: 3.9% in 2015(Expected)
 Internet Driving Awareness and Online Purchases

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B. Retailer or Supply-Side Drivers
1. Increased Investments in Retail
Organised Retail will possibly touch Rs. 3000 bn in 2018
Funds through Private Equity, IPO route and infusion of funds
through warrants
Allow organised players in Retail to expand
Pantaloon has invested around Rs.6,000 cr in the last four years to fuel
its three-fold expansion plan and took its total Retail space to 26mn sq.
ft. in FY2012.(still increasing)

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2. Tier- II & III cities to fuel future growth of Modern
Retail
• The Top-784 cities in India constitute about 26% of population
• They contribute 35% to Total Retail Sales.
• Tier- II and III cities account for 18% of the overall population
• They contribute 22% to the Total Retail sales.
3. Shortened Supply Chain benefits consumers
• A Traditional supply chain in India comprises 5-6 levels
• Two major disadvantages:
(a)Cost of the product increases
(b)Increase in shrinkage
Traditional Supply Chain

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Conclusion
It was a great experience For me to visit such a large retailer. It made me understand the
intricacies of retail management at a level which is outside the classroom studies.
About the BigBazaar, the along with the Indian retail industry have a very high growth
prospects. But as every coin as two sides, bigbazaar too. As internet using population is rising
day by day, it can be a great threat to bigbazaar in the future. Bigbazaar,’s new format
“Bigbazaar Direct” which is introduced just a few months back have high growth prospecs. Only
thing require is the proper understanding of the target segments, which Kishore Biyani do very
well.
I would like to conclude with just one line, “Daam me farak ke do gune paise vaapas”
Modern Supply Chain

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Bibliography
http://www.ibef.org/industry/retail-india.aspx
http://www.docstoc.com/docs/27855034/Spar-Hypermarket-Vs-Big-Bazaar
http://www.answers.com/topic/big-bazaar
http://timesofindia.indiatimes.com/india/India-has-more-rich-people-than-poor-
now/articleshow/6242324.cms
http://en.wikipedia.org/wiki/Retailing_in_India
www.censusindia.gov.in
Ernst & Young (www.ey.com