2. 1. INDUSTRY PROFILE
1.1 ABSTRACT:-
This paper provides detailed information about the growth of retailing industry in India.
It examines the growing awareness and brand consciousness among people across
different socio-economic classes in India and how the urban and semi-urban retail
markets are witnessing significant growth. It explores the role of the Government of
India in the industry growth and the need for further reforms. In India the vast middle
class and its almost untapped retail industry are the key attractive forces for global retail
giants wanting to enter into newer markets, which in turn will help the India Retail
Industry to grow faster. The paper includes growth of retail sector in India, strategies,
strength and opportunities of retail stores, retail format in India, recent trends, and
opportunities and challenges. This paper concludes with the likely impact of the entry of
global players into the Indian retailing industry. It also highlights the challenges faced
by the industry in near future.
1.2 INTRODUCTION:-
The India Retail Industry is the largest among all the industries, accounting for over 10
per cent of the country GDP and around 8 per cent of the employment. The Retail
Industry in India has come forth as one of the most dynamic and fast paced industries
with several players entering the market. But all of them have not yet tasted success
because of the heavy initial investments that are required to break even with other
companies and compete with them. The India Retail Industry is gradually inching its way
towards becoming the next boom industry. The total concept and idea of shopping has
undergone an attention drawing change in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. Modern retailing has entered into
the Retail market in India as is observed in the form of bustling shopping centers, multi-
storied malls and the huge complexes that offer shopping, entertainment and food all
under one roof.
A large young working population with median age of 24 years, nuclear families in urban
areas, along with increasing workingwomen population and emerging opportunities in the
services sector are going to be the key factors in the growth of the organized Retail sector
in India. The growth pattern in organized retailing and in the consumption made by the
Indian population will follow a rising graph helping the newer businessmen to enter the
India Retail Industry.
In India the vast middle class and its almost untapped retail industry are the key attractive
forces for global retail giants wanting to enter into newer markets, which in turn will help
2
3. the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent
annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food
Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry
in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The
future of the India Retail Industry looks promising with the growing of the market, with
the government policies becoming more favorable and the emerging technologies
facilitating operations.
1.3 GROWTH OF RETAIL SECTOR IN INDIA:-
Retail and real estate are the two booming sectors of India in the present times. And if
industry experts are to be believed, the prospects of both the sectors are mutually
dependent on each other. Retail, one of India largest industries, has presently emerged as
one of the most dynamic and fast paced industries of our times with several players
entering the market.
Accounting for over 10 per cent of the country GDP and around eight per cent of the
employment retailing in India is gradually inching its way toward becoming the next
boom industry.
1.4 RECENT TRENDS:-
Retailing in India is witnessing a huge revamping exercise as can be seen in the
graph
India is rated the fifth most attractive emerging retail market: a potential
goldmine.
Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
As per a report by KPMG the annual growth of department stores is estimated at
24%
Ranked second in a Global Retail Development Index of 30 developing countries
drawn up by AT Kearney.
Multiple drivers leading to a consumption boom:
o Favorable demographics
o Growth in income
o Increasing population of women
o Raising aspirations: Value added goods sales
Food and apparel retailing key drivers of growth
Organized retailing in India has been largely an urban
Phenomenon with affluent classes and growing number of double-income
households.
More successful in cities in the south and west of India. Reasons range from
differences in consumer buying behavior to cost of real estate and taxation laws.
3
4. Rural markets emerging as a huge opportunity for retailers reflected in the share
of the rural market across most categories of consumption.
IT is a tool that has been used by retailers ranging from Amazon.com to eBay to
radically change buying behavior across the globe.
1.5 RETAIL SALES IN INDIA:-
4
5. 1.6CONCLUSION:-
The retail sector has played a phenomenal role throughout the world in increasing
productivity of consumer goods and services. It is also the second largest industry in US
in terms of numbers of employees and establishments. There is no denying the fact that
most of the developed economies are very much relying on their retail sector as a
locomotive of growth. The India Retail Industry is the largest among all the industries,
accounting for over 10 per cent of the country GDP and around 8 per cent of the
employment. The Retail Industry in India has come forth as one of the most dynamic
and fast paced industries with several players entering the market. But all of them have
not yet tasted success because of the heavy initial investments that are required to break
even with other companies and compete with them. The India Retail Industry is
gradually inching its way towards becoming the next boom industry.
5
7. 2. Company profile
2.1 Introduction:-
Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and
which work on Wal-Mart type economies of scale. They have had considerable success in
many Indian cities and small towns. Big Bazaar provides quality items but at an
affordable price. It is a very innovative idea and this hypermarket has almost anything
under one roof….Apparel, Footwear, Toys, Household Appliances and more. The
ambience and customer care adds on to the shopping experience.
Is se sasta aur acha kahin nahin:-
Big bazaar is the company’s foray into the world of hypermarket discount stores, the first
of its kind in India. Price and the wide array of products are the USP’s in Big Bazaar.
Close to two lakh products are available under one roof at prices lower by 2 to 60 per cent
over the corresponding market prices. The high quality of service, good ambience,
implicit guarantees and continuous discount programmers have helped in changing the
face of the Indian retailing industry. A leading foreign broking house compared the rush
at Big Bazaar to that of a local suburban train.
2.2 Products available in Big bazaar:-
Apparel and Accessories for Men, Women and Children.
Baby Accessories. Toys
Luggage
Cosmetics Home Textiles
Linens
Crockery Home Needs
Sarees
Dress Materials Suiting & Shirting Household Appliances
Stationery
Electrical Accessories Household Plastics
Utensils & Utilities
Electronics Hardware
Footwear Home Decor
7
9. 3. LITERATURE REVIEW:-
Sunil Kumar:-
Objectives of the study:-
1. To find out the buying behavior of the customers coming in to Big Bazaar in surat
2. To determine the current status of Big Bazaar.
3. To find out the customers response towards Big Bazaar.
4. To study the satisfaction level of customers in different attributes of Big Bazaar.
5. To identify main competitors of Big Bazaar.
Suggestion:-
Big bazaar should include more of branded products its product category so as to
attract the brand choosy people to come in to big bazaar.
Big bazaar should provide large parking space for its customers so that they can
easily park their vehicles.
It should make different cash counters for different customers. Cash counter and
credit card payment counter should be placed differently in order to reduce the
rush and save the customer’s time. This will be a kind of motivator for the
customers of big bazaar.
9
10. Conclusion:-
Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery,
stationary, food items, electronic items, leather items, watches, jewellery, crockery,
decorative items, sport items, chocolates and many more. It competes with all the
specialty stores of different products which provide goods at a discounted rate all through
the year. It holds a large customer base and it seemed from the study that the customers
are quite satisfied with big bazaar. As of now there are 34 big bazaars in different cities of
India, it seems that there is a vast growth of big bazaar lying as customers demand is
increasing for big bazaars.
Big bazaar is a hypermarket store where varieties of products are being sold on different
product category. It has emerged as a hub of shopping specially for middle class people.
10
12. 4. Research methodology:-
Technology, customers tastes and preferences play a vital role in today’s generation.
Research Methodology is a set of various methods to be followed to find out various
information’s regarding market strata of different products. Research Methodology is
required in every industry for acquiring knowledge of their products.
4.1 Research objectives:-
Primary objectives:-
> To find out the buying behavior of the customers coming in to Big Bazaar in surat city.
Secondary objectives:-
> To determine the current status of Big Bazaar.
> To find out the customers response towards Big Bazaar.
> To study the satisfaction level of customers in different attributes of Big Bazaar.
> To identify main competitors of Big Bazaar.
4.2 Research design:-
Exploratory research
4.3 Sampling design:-
Non-probability sampling – convenience sampling
4.4 Type of data to be used:-
>primary data
>secondary data
4.5 Data collection method:-
Data is collected from various customers through personal
interaction. Specific questionnaire is prepared for collecting data. Data is collected with
12
13. mere interaction and formal discussion with different respondents. Some other relevant
information collected through secondary data .
4.6 Sample size:-
>100 customers
4.7 Research instrument:-
>survey by questionnaire
13
15. 5. DATA ANALYSIS:-
Que-1:- How frequently do you visit big bazaar?
Frequency Percent
weekly 15 15
monthly 29 29
quarterly 14 14
on 42 42
unplanned
basis
Total 100 100
Frequency of visit
15%
weekly
42%
monthly
quarterly
29% on unplanned basis
14%
Interpretation: From the above graph it interpret that in big bazaar 29% customers
visit monthly, 15% customer visit weekly 14% customers visit quarterly and 42%
customers visit on planned basis , it means mostly customers visit on un planned basis for
purchase their requirement.
15
16. Que-2:-apart from big bazaar do you intend to visit any other retail outlet in a mall?
Frequency Percent
no 19 19
yes 81 81
Total 100 100
Visit other retail mall
19%
no
yes
81%
Interpretation: From the above graph it interpret that 81% customers of big bazaar
visit other retail stores for their requirements and 19% customers of big bazaar generally
do not visit other retail stores. It shows that customer’s satisfaction level is not more in
big bazaar.
16
17. Que-2(a):- if yes then what are the other retail outlet do you intend to visit in a mall?
Responses
N Percent
outlet 23 10.70%
footwear outlet 35 16.30%
food court 50 23.30%
entertainment 29 13.50%
gift corner 37 17.20%
jwelleryandwattchstore 41 19.10%
Total 215 100.00%
Other retail frequencies
11%
19%
outlet
16% footwearoutlet
foodcourt
entertainment
17%
giftcorner
jwelleryandwattchstore
23%
14%
Interpretation: customer go at other retail outlet 11%for outlet,16% for footwear
outlet, 23% for foodcourt,14% for entertainment, 17% for gift corner, 19% for jewelry
and watches store. It shows that customer not more satisfy with food court.
17
18. Que-3:-what is the purpose behind visiting big bazaar?
Responses
N Percent
shopping 80 59.70%
outing 19 14.20%
others 35 26.10%
Total 134 100.00%
Purpose behind visiting
26%
shoping
outing
others
60%
14%
Interpretation: Out of the 100 respondents 60% of respondents visit big bazaar for
shopping, 14% for outing and 26% visit big bazaar for other purposes.
18
19. Que-4:- what type of products do you mostly purchase in big bazaar?
Responses
N Percent
clothes 61 24.90%
grocery 25 10.20%
food item 66 26.90%
letheritem 10 4.10%
electronic 13 5.30%
item
gift item 35 14.30%
anyotheritem 35 14.30%
Total 245 100.00%
product purchase
14%
25%
clothes
grocery
14% fooditem
letheritem
electronicitem
10%
6% giftitem
4% anyotheritem
27%
Interpretation: The above graph shows that 25% of people visit garment outlet in
a mall other than that of big bazaar. 27% of people also prefer to visit food court in a mall
other than big bazaar. 4% of the people go to footwear outlet in a mall other than big
bazaar.
19
20. Que-5:- on an average how much amount of money do you spend in a visit to big bazaar?
Frequency Percent
<500 26 26
500- 31 31
100
1000- 20 20
1500
1500- 13 13
2000
>2000 10 10
Total 100 100
amount of money spend
10%
26%
<500
13%
500-100
1000-1500
1500-2000
>2000
20%
31%
Interpretation: We can clearly see from this graph that majority of the customers
spend a lot in big bazaar that is 10% of people spend more than Rs2000 in a single visit to
big bazaar. number of people that is 20% of people each spend Rs 1000-1500 and 13%
peoples spend Rs 1500-2000 respectively in a visit to big bazaar.31% of people spend Rs
500-1000 and only 26% of customers are there who spends less than Rs500 in their visit
to big bazaar.
20
21. Que-6:- do you go with a planned list of products to be purchased from big bazaar?
Frequency Percent
yes 32 32
no 50 50
sometime 18 18
Total 100 100
planned list of product
18%
32%
yes
no
sometime
50%
Interpretation: As shown in the graph out of my total respondents of 100, 50% of
customers come to big bazaar without a planned list of products. 32% of people come in
to big bazaar with planned list of products to be purchased from big bazaar. And 18% of
customer come in to big bazaar sometimes with planned list.
21
22. Que-7:- what is your mode of payment in big bazaar?
Frequency Percent
cash 86 86
credit 11 11
card
debit 3 3
card
Total 100 100
mode of payment
3%
11%
cah
credit card
debit card
86%
Interpretation: As per my study is concerned, out of the total respondents 86% of
people make cash payment in big bazaar. 11% of them uses credit card as their mode of
payment and 3% of the people makes payment in big bazaar through their debit card.
22
23. Que-8:- what encourages you to visit big bazaar?
Responses
N Percent
price 37 23.90%
service 56 36.10%
product 34 21.90%
variety
product 28 18.10%
quality
Total 155 100.00%
encourages
18%
24%
price
service
productvariety
22% productquality
36%
Interpretation: 36% customers also said that they feel good about the service and
ambience provided by big bazaar. Product quality is rated at very low that is only 18%
which encourages the customers to come to big bazaar.
23
24. Que-9:- how is the parking space availability in big bazaar?
Frequency Percent
less then 11 11
adequate
adequate 62 62
more 27 27
then
adequate
Total 100 100
parking space availability
11%
27%
less then adequate
adequate
more then adequate
62%
Interpretation: As it is shown in chart most of 62% the people say big bazaar does
provide adequate parking space. 11% of people also say that less than adequate space is
provided for parking big bazaar.
24
25. Que-10:- give the rate of following parameters of big bazaar.
price
Frequency Percent
strongly 26 26
agree
agree 34 34
neutral 21 21
disagree 7 7
strongly 12 12
disagree
Total 100 100
price
12%
26%
7%
strongly agree
agree
nuteral
21% disagree
strongly disagree
34%
Interpretation: As per the above chart it can be conclude that 34% customers are
agree with the price and only 7% customer disagree with price.
25
26. service
Frequency Percent
strongly 15 15
agree
agree 49 49
neutral 25 25
disagree 8 8
strongly 3 3
disagree
Total 100 100
3% service
8% 15%
strongly agree
agree
25%
nuteral
disagree
strongly disagree
49%
Interpretation: from above chart it can be conclude that 49% customer are agree
and only 3% customer are strongly disagree with the service of big bazaar.
26
27. variety
Frequency Percent
strongly 26 26
agree
agree 35 35
neutral 24 24
disagree 8 8
strongly 7 7
disagree
Total 100 100
variety
7%
8%
26%
strongly agree
agree
nuteral
24% disagree
strongly disagree
35%
Interpretation: from above chart it can be conclude that 35% customer are agree
and only 7% customer are strongly disagree with the variety of product in big bazaar.
27
28. quality
Frequency Percent
strongly 14 14
agree
agree 30 30
neutral 25 25
disagree 23 23
strongly 8 8
disagree
Total 100 100
quality of products
8%
14%
strongly agree
23% agree
nuteral
30% disagree
strongly disagree
25%
Interpretation: from above chart it can be conclude that 30% customer are agree
and only 8% customer are strongly disagree with the variety of product in big bazaar. and
25% customer are neutral for variety of product.
28
29. experience
Frequency Percent
strongly 20 20
agree
agree 28 28
neutral 30 30
disagree 13 13
strongly 9 9
disagree
Total 100 100
shopping experience
9%
20%
13% strongly agree
agree
nuteral
disagree
28% strongly disagree
30%
Interpretation: from above chart it can be conclude that 30% customer are neutral
and only 9% customer are strongly disagree with the variety of product in big bazaar. and
28% customer are agree for shopping experience of product.
29
30. convienance
Frequency Percent
strongly 13 13
agree
agree 31 31
neutral 25 25
disagree 19 19
strongly 12 12
disagree
Total 100 100
convienance
12% 13%
strongly agree
19% agree
nuteral
31% disagree
strongly disagree
25%
Interpretation: from above chart it can be conclude that 25% customer are neutral
and only 12% customer are strongly disagree with the variety of product in big bazaar.
And 31% customers are agree for of product.
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31. Findings
1. At present time Big Bazaar provide different types of product assortments to the
customers.
2. Continuously opening of Big Bazaar chains in different major cities, increasing
quantities of the customers & profit show that Big Bazaar most accepted name in
organized retail chain in India.
3. Big Bazaar mainly deal with middle income group people who want qualitative product
with reasonable cost.
4. Big bazaar has a good reputation of itself in the market.
5. Big bazaar has positioned itself in the market as a discounted store.
6. Big bazaar holds a huge customer base. The majority of customers belong to middle
class family.
7. Impulse buying behavior of customers comes in to play most of the times in big bazaar.
8. There are more than 50 big bazaars in different cities of India, it seems that there is a
vast growth of big bazaar lying as customers demand is increasing for big bazaars.
9. Big bazaar is a hypermarket as it provides various kinds of goods like apparels,
grocery, stationary, food items, electronic items, leather items, watches, jewellery,
crockery, decorative items, sport items, chocolates and many more. It competes with all
the specialty stores of different products which provide goods at a discounted rate all
through the year.
31
32. Recommendation
Big bazaar should include more of branded products its product category so as to
attract the brand choosy people to come in to big bazaar.
It should make different cash counters for different customers. Cash counter and
credit card payment counter should be placed differently in order to reduce the
rush and save the customer’s time. This will be a kind of motivator for the
customers of big bazaar.
The service of the sales person is needed to be improved. Personal care should be
taken by the sales person for the customers so that the customers feel good.
Customer care department is needed to take proper care of customer complaints
and queries. The person sitting at the help desk of big bazaar should be able to
provide all necessary information to the customers whenever it is required.
The infrastructure is needed to be changed a bit during weekends as heavy crowd
comes in to big bazaar during those days.
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33. Conclusion
Big bazaar is a major shopping complex for today’s customers. It is a place where
customers find variety of products at a reasonable price. Big bazaar has a good reputation
of itself in the market. It has positioned itself in the market as a discounted store. It holds
a huge customer base. The majority of customers belong to middle class family. The
youth generation also likes shopping and moving around big bazaar. Volume sales always
take place in big bazaar. Impulse buying behavior of customers comes in to play most of
the times in big bazaar.
Different types of products starting from a baby food to pizzas all are available under one
roof. People not only visit big bazaar to do shopping but also visit for outing purpose as it
provides a very nice ambience to its customers. As people go to malls they just tend to
move around big bazaar whether it is for shopping purpose or for outing purpose. The
major significance of big bazaar is that it providing enough parking spaces for its
customers. Even though some customers say that they feel problem in parking their
vehicle.
33
34. Bibliography
Books
► Kotler Philip, marketing management, (Pearson education, 12th edition)
► Malhotra K. Naresh, marketing research (An applied orientation), Research design,
(Prentice hall of India pvt. 5th edition)
► Berman B and Evans J.R, Retail Management (Pearson education, 10th edition)
► Louden D.L. & bitta delia consumer behavior ( tata Mc. Graw hill, 4th edition )
► Newman A.J. and Cullen P,Retailing,Environment and operations(Vikas,1st Ed.)
Internet web page
www.Bigbazaar.co.in
Organizedretail.co.in
Retail seminar. In
Literature review on Big Bazaar.com
Retailing.co.in
34
35. Annexure
“A Study on Buying Behavior of Customers in Big Bazaar in surat”
Questionnaire
Part-1
1. Name: -
2. Age: -
3. Gender: -
4. Address: -
5. Qualification: -
6. Profession: -
7. Ph.
8. What’s your monthly income?
Below 10,000
20,000 – 40,000
40,000 – 60,000
More than 60,000
Part-2
1. How frequently do you visit big bazaar?
Weekly monthly
Quarterly on unplanned basis
2. Apart from big bazaar do you intend to visit any other retail outlet in a mall?
Yes no
2. (A). If yes then what are the other retail outlets do you intend to visit in a mall?
Outlet
Footwear outlet
Food court
Entertainment
Gift corner
Jewelery and watches store
35
36. 3. What is the purpose behind visiting big bazaar?
Shopping
Outing
Others
4. What type of products do you mostly purchase in big bazaar?
Cloths
Grocery
Food item
Leather item
Electronic item
Gift item
Any other item
5. On an average how much amount of money do you spend in a visit to big bazaar?
Below 500
500 – 1000
1000 – 1500
1500 – 2000
More than 2000
6. Do you go with a planned list of products to be purchased from big bazaar?
Yes no some time
7. What is your mode of payment in big bazaar?
Cash payment credit card debit card
8. What encourages you to visit big bazaar?
Price product variety
Service product quality
9. How is the parking space availability in big bazaar?
Less than adequate
Adequate
More than adequate
36
37. 10. Give the rate of following parameters of big bazaar.
parameters 1 2 3 4 5
Price
Service
Variety
Quality
Shopping experience
Convenience
37