A RESEARCH REPORT

ON
MARKET COMPARISON BETWEEN BIG BAZAR & SPENCER - AN
EMPIRICAL STUDY

Submitted in partial fulfilment of the requirement of

Master of Business
Administration,

2017-2018

Submitted to : Submitted by:

Dr. Vinita Kalra ANKEET SINGH
RollNo. 1610870009
MBA IV SEM

1
 RAJARSHI SCHOOL OF MANAGEMENT
AND TECHNOLOGY VARANASI

Rajarshi School of Management and

Technology
(UdaiPratap College Campus)

Varanasi, 221002

Ph.No: 0542 2280674,228163

Fax No:0542 2281062

This is to certify that the Research Report entitled “Market comparison between
Bigbazar & Spencer .”Submitted by Ankeet Singh, Roll No. 1610870009 in partial
fulfilment of the Award degree of MASTER OF BUSINESS ADMINISTRATION of Dr.
A. P. J. Abdul Kalam Technical University, Lucknow is a bonafide work for
academic session 2016-18.

In my opinion the report fulfils the requirement of the regulation & ordinance in
relation to the nature and standard of work for MBA Degree.

I recommend sending this project report for evaluation.

2
 (Dr. Vinita Kalra)
(Project Guide)

PREFACE

Master of Business Administration (MBA) Programme is one of the most reputed

professional courses in the field of management. This course includes both theory & its
applications as its content of Curriculum. The Research Project is an integral part of the
curriculum and its purpose is to provide the practical exposure of business world in the
changing scenario. In this way it helps the student in development of practical skills and
analytical thinking process. It makes more aware about the perceptions and tastes of the
people of the corporate world. Thus it helps in moulding the students according to the
requirements of the market

Each student is required to complete a project in his or her field of interest after the
completion of his or her second semester examination. The purpose of this project is to
expose the students on practical and research front of his or her area of interest. The project
gives a unique experience to aspirants who can visualize things what they have been taught in
classroom.

I was fortunate enough to have the opportunity to do a research project on “Market

comparison between Bigbazar & Spencer”. As a complementary to Project, every

student has to prepare and submit a report. It is an attempt to present practical knowledge &
observation gathered during the project.

3
 ACKNOWLEDGEMENT

I wish to express my sincere esteemed thanks to our institution, which provided me this most
awaited opportunity of undergoing training in the corporate world.

Along with the institution I also want to express my gratitude to my faculty members who
help me with their immense knowledge and their experience.

Last but not least I want to express my immense heartly thanks to all the personalities who

have been instrumental in making this project on ““Market comparison between

Bigbazar & Spencer” “possible and successful.

Ankeet Singh

MBA IV

4
 DECLARATION

I am Ankeet Singh hereby declare that the project work entitled

“““Market comparison between Bigbazar & Spencer” was carried by me in
the partial fulfilment of MBA Program from Rajarshi School of
Management & Technology, Affiliated to AKTU lucknow ,UP.

This project was undertaken as a part of academic curriculum according

to the university rules and norms and it do not have any commercial
interest and motive. It is my original work. It is not submitted to any other
organization for any other purpose

5
Ankeet Singh Date:

MBA IV sem Place: Varanasi

Roll No:1610870009

INDEX

CONTENT
CHAPTER-1
 Introduction of the Project

CHAPTER-2
 Company profile of Spencer
 Company profile of big bazar
 Objective, Scope & Limitations of the Study

CHAPTER-3
 Research Methodology

CHAPTER-4
 Data collection & Analysis
CHAPTER-5
 Findings of the study
 Limitation of the study
CHAPTER-6
 Conclusion
 Suggestion

Appendix

6
 Bibliography

Questionnaire

Introduction of
the Project

7
Introduction to Retailing sector

Retailing sector of India can be split into two segments. They are the informal and the formal
retailing sector. The informal retailing sector is comprised of small retailers. For this sector, it
is very difficult to implement the tax laws. There is widespread tax evasion. It is also
cumbersome to regulate the labor laws in this sector. As far as the formal retailing sector is
concerned, it is comprised of large retailers. Stringent tax and labor laws are implemented in
this sector.

If the retail industry is divided on the basis of retail formats then it can be split into the
modern format retailers and the traditional format retailers. The modern format retailers
comprise of the supermarkets, Hypermarkets, Departmental Stores, Specialty Chains and
company owned and operated retail stores

The traditional format retailers comprise of Kiranas, Kiosks, Street Markets and the multiple
brand outlets. The retail industry can also be subdivided into the organized and the
unorganized sector. The organized retail sector occupies about 3% of the aggregate retail
industry in India.

Size and contribution of the retail industry in India

In terms of value, the Indian Retail industry is worth $300 billion. India retail industry is the
largest industry in India, with an employment of around 8%. Its contribution to the Gross
Domestic Product is about 10%, the highest compared to all other Indian Industries. The
retail sector has also contributed to 8% of the employment of the country. The organized
retail sector is expected to triple its size by 2010. The food and grocery retail sector is
expected to multiply five times in the same time frame. The major reason behind the low

8
participation in the Indian retail sector is the need for lumpy investments that cannot match
up their break even points. The government policies are being revised from time to time to
attract investments in this sector.

The Indian Retail Industry — Sky is the limit

In terms of the retail development index India ranks fifth. In Asia it occupies the second
position, next to China. Among all the global markets, the Indian retail market is the most
expanding. This is owing to absence in restriction at the entry level. So the large foreign
companies can reap the benefits of economies scale by entering the green retail fields of
India. There are many reasons why the retail industry in India can reach the zenith.

Firstly the organized retail sector in India has a very low contribution to the entire retail
sector in the country. Hence there is ample scope for the new players to achieve success in the
backdrop of soaring disposable income of the upcoming generation. Secondly, not only have
the incomes increased but there has been a sea change in the preferences of the consumers.
These factors have acted as a stimulus for the ushering of foreign players retailing in
apparels, accessories, electronic appliances etc. Large shopping malls have already
mushroomed in the metropolitan cities. There still lies untapped potential in the Indian Retail
Market.

The size of retail industry in an economy depends on many factors and the level of consumer
spending is the most important among these factors. The retail sector in India has grown by
leaps and bounds in the last five years. The reason behind this growth has been the synergy of
many propellants. However the growth is not always genuine as there are exaggerations as
well. But these exaggerations also have benefits since they given a feel of growing
competition all around. Secondly the present situation is just a depiction of nascent stage. The
future of the trajectory may not be as steep as it is now or may be even slope downward.
'What will be the future size of the retail industry' is the mind boggling question. Another
moot point that will gain importance in due time concerns the future of the unorganized retail
market which constitute a significant proportion of the whole industry. The retail stores have

9
proved to be a vantage point for the customers. This implies that the small farmers who used
to sell their product in the sabji-mandis and on roadsides are going to lose a significant
market share as they can't employ the two profit maximizers-economies of scale and
economies of scope.

Retailing in India: the present scenario

The present value of the Indian retail market is estimated by the India Retail Report to be
around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail
market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different
types of retail industries present in India. Furthermore around 15 million retail outlets help
India win the crown of having the highest retail outlet density in the world. The contribution
of retail sector to GDP has been manifested below:

Country Retail Sector's share

in GDP (in %)
India 10
USA 10
China 8
Brazil 6

As can be clearly seen, retailing in India is superior to those of its contenders. Retail sector is
a sunrise industry in India and the prospect for growth is simply huge. There are many factors
that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of
them can be listed as follows:

 Rise in the purchasing power of Indians- the rise in the per capita income in the last
few years has been magnificent. This has led to the generation of insatiable wants of
the upper and middle class. The demand of new as well as second hand durables has
risen throughout the country thus providing the incentive for taking up retailing.

10
  Favorable to farmers- retailing has helped in removing the middlemen and has thus
enhanced the remuneration to farmers. This is a new revolution in the agricultural
sector in India and will go a long way in amending the condition of agriculture, a
major concern among policy makers.
 Use of credit- a typical Indian is most conversant with using credit cards than carrying
money. These have led to a shift of the consumer base towards supermarkets and
make the payments in the form of credit.
 Comfortable Atmosphere- a visit to a retail store appears to be more soothing for the
generation-Y. People and kids prefer to shop in an air conditioned a tech savvy
manner.
The retail industry is the second largest employer in India. It currently employs about
7 percent of the total labor force in India. Finance Minister P. Chidambaram's recent
statement “salaries ought not to be legislated” is a welcome move as most of the
organized retail is in private hands. However only about 4.6% of the total retail trade
is in organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The major
and minor players desperately need to work hard in this direction so that next time the
figures look more decent. The government must also make an attempt to ameliorate
the situation as political instability and infrastructure namely power and roads are the
major roadblocks in the path of smooth functioning of the market.

Retail sectors in neighboring countries:

China - The total sales from retail market in China reached US$755 billion in 2005. However
organized retailing in China accounts for only 20% of it. Also the fragmentation of China's
retail market is so high that top 100 retailers make up for only 10.5% of the total market. The
registered sales of department stores grew by 25.7% and that of convenience stores grew by
36.5% in 2005. The Chinese retail market is expected to reach new highs as the population of
strong middle class is expected to double by 2020 and mergers and acquisitions among
retailers are3 going in great guns. The WTO restrictions are also expected to have a favorable
impact on its retail sector.

Japan - total annual sales for the Japanese retail industry for 2003 amounted to JPY 133,273

11
billion. Japan had 1.2 million retail establishments in June 2004 and there were 42,738
specialty superstores. Between 2002 and 2004 annual sales per store increased by 3.8%. The
growth was mainly driven by the grocery superstores but the number of superstores
specializing in clothes gradually came down. The organized retail sector in Japan couldn't
perform at its full efficiency because of collapse of the 'bubble economy' in the early 90s.

Retail Distribution in India

The distribution sector bridges the gap between the producer and consumer and thus forms a
crucial link. Distribution of retail in India has multiple dimensions. Its uniformity is difficult
to decide and easy to argue. Distribution in any sector is usually measured by the reach of its
products to people. But in case of the retail sector in India it also implies the dispersion
among the organized and unorganized spheres. The question of distribution hovers mainly
around the intentions of private players to reach out to the less rich people. But the point that
has caught the public eye recently is the ambiguous mood of the beneficiaries and the
chauvinist government that produces civil service.

Propagation of the retail sector:

The expansion of the retailing in India has been magnificent especially after the advent of
liberalization and the abolition of licensing. A comparative study with other developed
countries indicates that the retail sector has achieved a fantastic breakthrough in the Indian
economy. India topped the A.T. Kearney's Global Retail Index in both 2005 and 2006as can
be seen below:

The GRDI Score as calculated by A.T. Kearney is a weighted average of market

attractiveness, market saturation, country risk and time pressure. India had a GRDI score of
100 in both 2005 and 2006.implying market potential and attractiveness. As the graph clearly
depicts, India's contenders like Russia and China are nowhere in competition. This result has
been obtained mainly because of a higher APC (Average Propensity to consume) of the
Indian people.
According to IMF, India has a APC of more than 60% while the corresponding figure for

12
Japan is 57% and China is 39%. Also Indians tend to exhaust 40% of their consumer
spending on groceries (foodstuffs). These figures are intensified by the fact that Indians have
special preference for lifestyle products and they feel comfortable in buying against credit as
the credit card and mortgage market has been growing by more than 30%.

We present the results from another survey below in order to strengthen our findings.

Availability of Retail Stores

Country Number of stores

per 1,000 people
India 22
Japan 10
USA 3.8

The above table reinforces our view that India has done a great job in retailing. One
noteworthy point here is that Japan in spite of being one of the most densely populated
countries has fared poorly than India. But this euphoria loses its charm if we compare the
percentage of organized retail in the total value generated by the retailing sector.

According to international standards, a

retail store is nominated as organized only
when it features more than 10 employees.
The above chart clearly portrays the
miserable condition of India's organized
retail A forecast of 40% annual growth in
the organized retail sector seems sound.
The number of shopping malls in India
has grown from 1 in 2001 to 100 in 2005
but still more effort is needed to turn the
predictions into reality.

Studies have further showed that non-urban areas account for only about 15% of organized
retailing So it is high time that the retail industries pay importance to diversification and
reach out to non-urban markets. If they remain confined to the metropolis then they will soon

13
hit a ceiling and will be able to grow no more. But at the same time they must realize that the
rustic people are sceptic about the urbane lifestyle habits. The mega retail players will have to
drop their policy of full extraction of consumer surplus and will have to employ the local
people to overcome the myth that entry of a branded retail will displace the millions of
traders, shopkeepers and hawkers. Protests must be welcomed and meetings encouraged
making life saner.

Retail markets in Germany, South Africa and many other countries allow 100% foreign
investment in retail. This has helped in setting up of cash and in creating wholesale markets.
However, in India, only 51% FDI is allowed in single-brand retail and that too with prior
approval. In case of multi-brand retail, FDI is completely prohibited. This is a perfect
beginning but foreign investment should be gradually liberalized to modernize farming and
help farmers scale up. Moreover, restricting FDI for protecting mom-and-pop stores seems
unjustifiable since Tata, Reliance and Bharti have already made a foray in the sector.

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Components of Retail Sector

The major components of the retail sector are:

Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer Durables, Apparel,
Footwear and leather, Watches, Jewellery, and Health and Beauty

The anatomy of the retail market has shown that the clothing and textiles constitutes 39 per
cent of the organised retail pie, followed by food and grocery, which accounts for 11 percent
of the total retail market.

However, according to the survey conducted by KPMG for Federation of Indian Chamber of
Commerce and Industry (FICCI), among these, the food and grocery is expected to witness
the fastest growth followed by clothing as the second-fastest growing segment.

15
Marketing Strategies

Marketing strategy is a method of focusing an organization's energies and resources on a

course of action which can lead to increased sales and dominance of a targeted market niche.
A marketing strategy combines product development, promotion, distribution, pricing,
relationship management and other elements; identifies the firm's marketing goals, and
explains how they will be achieved, ideally within a stated timeframe. Marketing strategy
determines the choice of target market segments, positioning, marketing mix, and allocation
of resources. It is most effective when it is an integral component of overall firm strategy,
defining how the organization will successfully engage customers, prospects, and competitors
in the market arena. Corporate strategies, corporate missions, and corporate goals. As the
customer constitutes the source of a company's revenue, marketing strategy is closely linked
with sales.

Types of strategies

Marketing strategies may differ depending on the unique situation of the individual business.
However there are a number of ways of categorizing some generic strategies. A brief
description of the most common categorizing schemes is presented below:

 Strategies based on market dominance - In this scheme, firms are classified based on
their market share or dominance of an industry. Typically there are four types of
market dominance strategies:
o Leader

o Challenger

o Follower

o Nicher

 Porter generic strategies - strategy on the dimensions of strategic scope and strategic
strength. Strategic scope refers to the market penetration while strategic strength
refers to the firm’s sustainable competitive advantage. The generic strategy
framework (porter 1984) comprises two alternatives each with two alternative scopes.

16
 These are Differentiation and low-cost leadership each with a dimension of Focus-
broad or narrow.

o Product differentiation

o Market segmentation

 Innovation strategies - This deals with the firm's rate of the new product development
and business model innovation. It asks whether the company is on the cutting edge of
technology and business innovation. There are three types:
o Pioneers

o Close followers

o Late followers

 Growth strategies - In this scheme we ask the question, “How should the firm grow?”.
There are a number of different ways of answering that question, but the most
common gives four answers:
o Horizontal integration

o Vertical integration

o Diversification

o Intensification

17
DIVISION OF RETAILERS IN INDIA

The retail sector in India can be divided into two major categories:

1) Organized
2) Unorganized

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Company profile

Spencer

19
Spencer’s Retail Limited, part of RP Sanjiv Goenka Group, is a multi-format retailer
providing a wide range of quality products across categories such as food, personal care,
fashion, home essentials, electrical and electronics to its key consumers. Specialty sections
such as Spencer’s Gourmet, Patisserie, Wine and Liquor, and the recently launched
Epicuisine section are some of the key differentiators in our hypermarket stores.

Spencer’s, being one of the earliest entrants into the retail space in India, introduced the
Indian consumer to the concept of organized retailing. The first ever hypermarket in India
was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s runs 120 stores,
including 37 Hyper stores in over 35 cities in India.

Spencer’s brand positioning – Makes Fine Living Affordable – embodies its philosophy of
delighting shoppers with the best products and services that enable a fine living at reasonable
prices, while providing them with a warm, friendly and educational retail environment.

Our awards stand testimony to our unique position.

Heritage

Since 1863, Spencer’s has been a part of the Indian retail landscape. At one time, the
Spencer’s Empire stretched from Peshawar to Cochin, from Karachi to Chittagong, spanning
the length and width of undivided India. Originally owned by a British gentleman – yes, there
was a Mr. Spencer (John William Spencer, to be precise) – it acquired Indian ownership in
the 1960s, and became part of the RPG Group in 1989.
In 1995, RPG Enterprises, the flagship company of the RPG Group, launched 'Foodworld' as
a joint venture with Hong-Kong based Dairy Farm International. The joint venture, which
operated supermarkets under thename 'Foodworld' and hypermarkets under the name 'Giant',
was terminated in 2006. RPG retained 48 of the 93 stores it owned. These were re-furbished
and their launch under the brand name, Spencer’s, kicked off a new phase in both the history
of the Spencer’s brand, and retail in India.
Since inception Spencer’s has been a consumer-centric brand, constantly innovating,
pioneering formats, evolving over time but always keeping consumer needs and satisfaction
center-stage. Back in 1920, we were the first grocery chain in India. In 1980, we became the

20
first supermarket chain, and in 2001, we introduced India to the joys of hypermarket
shopping.
What has remained unchanged for 150 years is the trust that the Spencer’s brand evokes. To
the consumer, it carries the promise of innovation, quality, and service; the confidence that
they will always be able to find a Spencer’s store at a convenient location; that it will have a
pleasant ambience; and that it will offer a wide range of products at affordable prices.
As a pioneer in organized food retailing in India, the modern-day Spencer’s Retail started
operations back in the early 1990s in South India. Today, it has over 135 stores spread across
over 40 cities in India.

Spencer’s operates 2 distinct retail formats:

 Convenience stores: These are neighborhood stores that cater to the daily and weekly
top-up shopping needs of consumers. Ranging from 1,500 to 15,000 sq. ft. in size, they
stock an assortment of fruits and vegetables, food and non-food FMCG products, staples
and frozen foods. The larger of these stores, having a floor area of more than 10,000
sq.ft., usually also offer a selected range of baked goodies, frozen foods, personal and
home care products, baby care essentials,basic wear,and electrical equipment.
 Hypermarkets: Spencer's hypermarkets are megastores that combine a supermarket
with a department store. Ranging from 15,000 sq. ft to over 50,000 sq. ft. in size, they
stock a wide and deep assortment of food, fashion, home and personal care, general
merchandise, electrical and electronics, staples, frozen foods, and specialty sections, all
under one roof.
Despite having two distinct formats, Spencer’s brand ethos is evident in all it’s stores, and it's
positioning remains constant.

Differentiators
Spencer’s has chosen to differentiate by establishing itself as the preferred shopping
destination for young customers looking for a range of quality products that allows them to
indulge in a global lifestyle, yet at affordable prices. It’s brand image of - Makes Fine Living
Affordable stands - testimony to this philosophy. From daily to weekly to specialty shopping,
Spencer’s strives to fulfill every need and provide maximum convenience.

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Specifically, the following distinguish the Spencer’s brand and create a memorable all-
encompassing shopping experience for its shoppers:

 Products – Spencer’s offers the widest assortment of food and lifestyle (fashion,
home, entertainment), dealing both, with brands and private labels. It has different
special sections within it’s hypermarkets to delight the customer
 Quality – Quality is a major reason why Spencer’s is well-regard by it’s shoppers.
Spencer’s lays a huge emphasis on all-round quality in products, stores, service
standards, and customer engagement programs. It’s “Quality since 1863” tagline has
stood the test of time.
 Heritage – Spencer’s is India’s oldest retailer tracing its roots back to1863. The brand
has many firsts to it’s credits.
 Innovations/Specialty – In Spencer’s hypermarkets, the shopper can find specialty
sections such as a live bakery, the patisserie, a nut’s counter, a dedicated wine & liquor
section, and Epicuisine.
 Promotions – Spencer’s seek to offer the right products at the right time at the right
price, with promotions carefully designed to suit the needs and wants of the consumers
monthly, weekly and daily shopping basket.
 Brand Imagery – Spencer’s stores have contemporary and international interiors, and
it's extensively trained staff strive to make customers feel at home while they shop, with
a welcoming and trusted attitude.
 Own Brands
 Spencer’s own brands, commonly referred to as private label, offer a wide range of
products ranging from food to personal care to fashion to home utility items.
Spencer’s Smart Choice, Tasty Wonders, Clean Home and Maroon are some of its
own brands which host a varied choice that caters to the need of a modern household.
 The Spencer’s own brands cover a lot of articles in the food space, including rice,
pulses, whole spices, dry fruits and nuts, sauces, instant noodles, breakfast cereals,
honey, breads, beverage, wafers, pickles, jams and cookies. Spencer’s is mindful of
catering to local tastes, and therefore its vegetable and fruit pickles are customized to
regional flavors as well. It’s personal care range includes items such as face wipes,
tissues, baby needs, and hand wash, while it’s home care range includes detergents,
dishwashing soaps, toilet cleaners and floor cleaners. Maroon is another of it's own

22
 brands, which provides premium home care solutions. From cooking to serving,
Maroon is your complete kitchen partner. Its assortment includes premium storage
and kitchen utensils, beautifully designed melamine ware, and foil wraps. There are
also smart backpacks and convenient travel accessories that Spencer’s sells through its
private label brands.
 In the fashion and apparel space, Spencer’s offers both contemporary and classic
looks through its own brands, which cater to casualwear, loungewear, leisurewear,
formal-wear, and accessories such as leather items, casual jewellery and footwear.
Some of the popular private label brands are Island Monks, Mark Nicolas, Asankhya,
Scorez, La Bonita and Island Monks Kids.
 Overall, the Spencer’s private brand ties into its positioning of Makes Fine Living
Affordable, and therefore all the products are conveniently priced and promise great
quality.

What we Sell -
 Food

 Quality Choices were never so affordable !!!

 Being a modern retailer, Spencer’s offers the widest variety and assortment of food
choices from all parts of India and across the world. The assortment is best suited for
shoppers who are willing to try out different cuisines.
 Choice is available from the widest and freshest variety of fruits and vegetables,
processed and ready to eat food, exotic range of foods, staples, beverages, meal
solutions, nuts, poultry, dairy, savories and snacks, spices and condiments and
everything that one may choose to taste during the day.

23
 A wide assortment for breakfast solutions, easy to cook or ready to eat meal solutions,
regular or diet food, organic assortment, the best of worlds cheeses, deli and cuisines
hailing from all parts of the world is available under one roof at Spencer’s


 Fruits & Vegetables

 Together with our specially selected suppliers and food producers, we're committed to
providing you the freshest and best quality of fruits and vegetables in both regular and
exotic variants. We ensure that the produce is sourced responsibly and is of the

highest quality.BUY FRUITS & VEGETABLES ONLINE

 Personal Care

 Look good and feel good with Spencer’s at the personal care section which offers
solutions to all your beauty and personal hygiene needs. This section offers a wide
range of national and international products that is of utmost importance for a healthy
and youthful lifestyle.


 Beauty

24
 

 Highlight your best features with the great range of beauty products available at
Spencer’s beauty counters. We offer the best choices in eyeliners, kohl, lip color, nail
art and other beauty products that accentuates your beauty. Whether you choose to
stand out amongst all or seamlessly gel with the masses our make-up and beauty
products will help you look good at all times.

Home

Home Decor

25
Give your home the makeover you want. Step into a Spencer’s store and be prepared to be
wowed by our collection of Home décor products for your living room, dining and bedrooms.
From minimalistic to ultra-modern, our wide variety of Home and General merchandise will
cater to the very look you’re after. Utility furnitures – sofa sets, bean bags, closets and
cabinets, center and side tables, wardrobes, study table, ironing tables – you will find them all
under one roof.
BUY HOME DÉCOR PRODUCTS ONLINE

Home furnishings
Bathroom essentials
Kitchen essentials
Dining Essentials
Travel needs

Toys & Stationery

26
 Big bazaar

Big Bazaar is an Indian retail store that operates as a chain of hypermarkets, discount
department stores, and grocery stores. The retail chain was founded by Kishore Biyani under

27
his parent organisation Future Group,[3] which is known for having a significant prominence
in Indian retail and fashion sectors. Big Bazaar is also the parent chain of Food Bazaar,
Fashion at Big Bazaar (abbreviated as fbb) and eZone where at locations it houses all under
one roof, while it is sister chain of retail outlets like Brand Factory, Home Town, Central,
eZone, etc.

Founded in 2001, Big Bazaar is one of the oldest and largest hypermarkets chain of India,
housing about 250+ stores in over 120 cities and towns across the country.

History[edit]

Big Bazaar was founded in 2001 by Kishore, the founder and chief executive officer (CEO)
of the parent company, the Future Group.

Popular Indian actress Asin and the then-Captain of Indian cricket team, Mahendra Singh
Dhoni have previously endorsed for the fashion vertical of Big Bazaar

Big Bazaars journey began in October 2001, when the young, first generation entrepreneur
Kishore Biyani opened the countrys first hypermarket retail outlet in Kolkatta (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 conceptualising 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 mandis, the thought came to name it as Big
Bazaar.However, we had freezed on the punch line Isse Se Sasta Aur Achha Kahi 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 general 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
26th, 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

28
descended at various Big Bazaar stores in the country to shop at their favourite shopping
destination.

Further, what followed was the time and again rewriting of the Indian Retail experience,
wherein understanding of the Indian 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 storesto 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. Its 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 World 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 Indianess. We believed in growing with the society, participating and
celebrating all regional and local community festivals, giving customers preferences above
everything else.

29
OBJECTIVE

Objectives of Study

30
1. To Study the promotional strategies of SPENCER& BIGBAZAR.
2. To study the challenges and future prospects of SPENCER& BIGBAZAR.
3. To study the different Brand offerings by SPENCER& BIGBAZAR.
4. To study the distribution strategies of SPENCER& BIGBAZAR.
5. To study the market comparison of SPENCER& BIGBAZAR.
6. To study the customer choosing priority for the SPENCER& BIGBAZAR.

31
Scope

Scope of study

32
This project gave us great exposure to the customer’s perception to the marketing strategies
adopted by the SPENCER & BIGBAZAR because it includes the service offered by them.
The study also identifies the attitudes and preference of the consumers. The study also
focused on Media through which the product reaches the consumers this project helped us in
knowing the market practically.

33
 RESEARCH
METHODOLOGY

Research Methodology

34
Research Methodology is a way to systematically solve the research problem. When we talk
to research methodology we not only talk of research methods but also consider the logic
behind the method we use in the context of our research results are capable of being
evaluated either by researcher himself or by other.

The purpose of this section is to describe the methodology carried out to complete the work.
The methodology plays a dominant role in any research work. The effectiveness of any
research work depends upon the correctness and effectiveness of the research methodology.

This section deals with research design used, data collection, methods used and sampling
methods used.

Research design

A research design specifies the methods and procedures for conducting a particular research.

According to Ker linger “Research design is a plan, structure and strategy of investigation
conceived so as to obtain answers to research questions and have to control variance.”

My research design

I have chosen descriptive research design for my study because I am interested in knowing
the marketing strategies adopted by Spencer& BIGBAZAR

To accomplish the predefined objectives of the research, descriptive research design is used
to collect the require information from the sources. It’s a fact finding approach generalizing a
cross sectional study of the present situation.

Designing the questionnaire

Structured questionnaires and observation method have been used to conduct the research.

35
Sampling method

Specific sampling method was used to collect the data from the respondents because sample
size is large. Customers & employees of Spencer& BIGBAZAR were selected for the survey.

Sampling unit

The data was collected from the Customers & employees by questionnaire and observation
method in the Spencer(Crown Interiors Mall) & BIGBAZAR (sec-31.faridabad)

Sample size

The data were collected from:

 50 customers
 50 employees

Data collection:

There are two major methods of data collection:

 Primary data
 Secondary data

Primary data collection is used when there is need for collecting first hand data. In such
cases, no adequate and usable data is available to the researcher.

Secondary data collection is used where adequate and usable data is available to researcher.
Primary data collection by one person may become secondary data for another.

In my research study I have used both primary as well as secondary data collection method.
For primary data observation method is used, and for secondary data the sources used are
books, journals, magazines and Internet.

Data analysis

36
All the recommendations in this project have been suggested keeping in mind the thorough
analysis of all the steps in recruitment process.

Data collection methods

The method used for the survey process is through questionnaire.

SWOT ANALYSIS
37
 BIGBAZAR

Strength:

38
  High Brand Equity in evolving retails markets
 State-of-art infrastructure of Big Bazaar outlets
 POP to increase the purchase
 One stop shop for variety of products, increasing customer time and available choices

Weakness:

 Unable to meet store opening target so far

 Falling revenue per square feet

Opportunity:

 Organized retail is just 4.15%of total pie of Indian retail market

 Evolving Customer preferences in recent years.

Threat:

 Competitors, global big players planning to foray into market

 Government policies are not well-defined in India
 Unorganized retail market of India

SPENCER

Strengths:

39
  High quality,
 latest in-style products,
 international shopping experience
 value for money pricing
 loyal following
 Own brand of merchandise, which is both trendy and individualistic.
 new introductions every week
 variety of designs and styles
 exciting mix with a range extending from stylized clothes, footwear and accessories
for men, women and children to well-co-coordinated table linens, artefacts, home
accessories and furnishings.
 Well-designed interiors, sprawling space, prime locations, lovely coffee shops add to
the customers’ shopping experience.

Weakness:

 Needs to expand faster to maintain market share

 Size of the stores should be increased to stock more products.
 Targets the middle-class segment. Higher class customers do not prefer west side.
 Trent limited may not be able operate west side efficiently due to its other operations.

OPPORTUNITIES:

 To survive in today’s world globalization is important. Spencer have a wide

opportunity to go more global to improve and expand its business.
 They also have the opportunity to consider more overseas supplier which will actually
give them cost advantage, rather than suppliers available on a local level.

40
  They also have the opportunity to maximize the use of available technology to
improve their functioning and to gain competitive advantage.

Threats:

– If the unorganized retailers are put together, they are parallel to a large supermarket
with no or little overheads, high degree of flexibility in merchandise, display, prices
and turnover.
– Shopping Culture: Shopping culture has not developed in India as yet. Even now
malls are just a place to hang around with family and friends and largely confined to
Window-shopping.
– Cultural Variation leads to variation in merchandise in India at different geographical
locations.
– Competition from future group and various other retail stores which are growing
rapidly.

INDIAN CONSUMERISM

41
The lifestyle and profile of the Indian consumer is going through a rapid transformation. The
population of India is young, energetic and full of enthusiasm. 50% of the Indian
population is under the age of 25. There has been a transition from price consideration to
quality and design, as the focus of the customer has changed. The upper and middle-
class population of today needs a feel good experience even if they have to spend a little
more for that. People are moving towards luxury and want to experiment with fashion
and technology. There is an increasing need of better apparels, cars, mobile phones and

consumer durables.

The food & grocery, clothing, consumer durables and books & music sectors are the major
retail sectors. However, unorganized small outlets largely control the sector. Hence there is
tremendous potential for the organized sector in various formats, such as hypermarkets,
supermarkets, specialty stores, category killers and discount chains.

42
Data Collection
And
Analysis

43
 ANALYSIS

Q1) What Retail chain do you usually go to?

 SPENCER
 BIGBAZAR
 Any other

The observation shows that 44 % of people out of 100 person surveyed prefer to go to
BIGBAZAR and only 38 % & 18% prefer to go Spencer & any other retail outlet
respectively.

44
Q2) How often do you visit a Shop?
 Once in a month
 Twice in a month
 Thrice in a month

The observation shows that 42 % of people out of 100 person surveyed visits retail stores
once in a month and only 38 % & 20% visits the retail stores twice & thrice in a month
respectively.

Q3) How much money do you usually spend on shopping in a month?

 0-2500 Rupees

45
  2500-7500 Rupees
 7500-12500 Rupees
 Over 12500 Rupees

The observation shows that 52 % of people out of 100 people surveyed spend Rs 2500-7500
on shopping in a month. There are only 5% people who spend more then 12500 on shopping
out of 100 people surveyed.

Q4) How much time do you usually spend at a Shopping mart?

 Less than 1/2 hour
 1/2- 1 hour
 1-2 hours
46
  Over 2 hours

The observation shows that 49 % of people out of 100 people surveyed spend 1-2 hours in
shopping mart and 30 % people spend ½-1 hour on shopping at retail store. There are only 9
% people who spend more than 2 hours at shopping mart.

Q5) How many people do you usually go with?

 Alone
 With 1 person
 2-4 people
 More than 4 people

47
 The observation shows that 51 % of people out of 100 people surveyed goes along with 2-4
person for shopping & there are only 4 % people who goes for shopping along with more
than four persons...

Q6) Please rate the following, according to your personal choice, for both Spencer&
BIGBAZAR….

48
Questions Spencer BIGBAZAR

1. Quality of products: (1=Bad and 5= Excellent)

         

Accessories 1 3 4 4 5
2 5 1 2 3
         

Household 1 3 4 4 5
2 5 1 2 3
         

Lifestyle 1 3 4 4 5
2 5 1 2 3

Questions Spencer BIGBAZAR

49
 2. Prices of products: (1=Bad and 5= Excellent)
         

Accessories 1 3 4 4 5
2 5 1 2 3
         

Household 1 3 4 4 5
2 5 1 2 3
         

Lifestyle 1 3 4 4 5
2 5 1 2 3
Q 7) Please rate the following, according to your personal choice, for both Spencer&
BIGBAZAR.

Q 8) Please rate the following, according to your personal choice, for both Spencer&
BIGBAZAR.

Questions Spencer BIGBAZAR

3. Staff: (1=Bad and 5= Excellent)

50
          

Behaviour 1 3 4 4 5
2 5 1 2 3
         

Manners 1 3 4 4 5
2 5 1 2 3
         

Helpfulness 1 3 4 4 5
2 5 1 2 3
         

Service 1 3 4 4 5
2 5 1 2 3

51
Questions Spencer BIGBAZAR

4. What excite you most? : (1=Bad and 5= Excellent)

         

Promotional offers 1 3 4 4 5
2 5 1 2 3
         

Variety of products 1 3 4 4 5
2 5 1 2 3
         

Price of the products 1 3 4 4 5

2 5 1 2 3

Questions Spencer BIGBAZAR

5. Do you ever face any problem?(Yes/No)

         

Billing Problems 1 3 4 4 5
2 5 1 2 3

52
          

Heavy Rush 1 3 4 4 5
2 5 1 2 3
Personnel’s lack of          

knowledge 1 3 4 4 5
2 5 1 2 3

Questions Spencer BIGBAZAR

6. Overall experience? : (1=Bad and 5= Excellent)

Products          

1 3 4 4 5
2 5 1 2 3

53
          

People 1 3 4 4 5
2 5 1 2 3
         

Ambience 1 3 4 4 5
2 5 1 2 3

54
 Findings

Findings

1. The choice of a store location has a profound effect on the entire business life of a
retail operation. A bad choice may all but guarantee failure, a good choice, and
success.
2. Choosing a retail location is, at best, a risky undertaking. Considering the
consequences of choosing a location that proves to be unsuitable, it pays to get as
much assistance as possible. According to a survey more than 60% of the customer

55
 prefers to shop in a retail store which is easily accessible to them.
3. Advertising plays a very important role in achieving growth for any retail company.
This is evident from the fact that Advertising by Retail Industry registered a rise of 14
percent during January - May 2015 over January - May 2017
4. The right location, trained manpower, software assistance, product with a distinct
differentiation, a strong value proposition, efficient supply chain management - these
are the factors that influence the success of a retail outlet. With competition in this
segment increasing, differentiation and a strong value proposition assume
significance. Retail chains are realizing that they cannot be another ‘me-too’ store.
The differentiation today among the 5-6 retail chains has come through private labels,
which in some cases account for as much as 70 per cent of the total merchandise in
the outlet.
5. Variety offered by any retail store is of very much important to attract all type of
customers in the stores. A large variety of products caters to each segment of
customers.
6. Shopping experience within a store also has a great impact on selecting a product
from a particular retail store. Overall ambience includes infrastructure facilities
provided by the store such as air conditioners, lighting etc.
7. Pricing is in fact a dramatic controller of at least 3 key strategic elements to any
company's success: Company’s image, the product and services company sells and
consumer behaviour. The Importance of Pricing their Products' will give them an
insight into developing appropriate costing methods and the impact of getting it
wrong in today's competitive creative market. This topic should be of interest to
anyone who is unsure if they are getting it right. Remember the difference between
over or under-pricing their work can mean a very short future for any business.
Approximately 60% customers think that Price is the most important factor while they
go for shopping in a retail stores
8. Quality in everyday life and business, engineering and manufacturing has a pragmatic
interpretation as the non-inferiority, superiority or usefulness of something. This is the
most common interpretation of the term. The quality of a product or service refers to
the perception of the degree to which the product or service meets the customer's
expectations. Quality has no specific meaning unless related to a specific function
and/or object. Quality is a perceptual, conditional and somewhat subjective attribute.
And in addition to that, more than 90% of customers place quality as the most

56
 important factor than anything else in the list to shop in a retail store.
9. More than 70% of customers place variety as an important factor to shop in a
particular retail store.
10. Brands name bears an important role while shopping of any type of goods. So
building a brand for a retail store is important as 80% of customer still prefer to buy
branded clothes in the retail store instead of local or unbranded clothes.

57
LIMITATION OF THE
STUDY

LIMITATION

Although it would have been nice to conduct a perfect research study, but this study is
conducted under certain limitations, which were faced while doing this research. So it is
highly recommended to consider these limitations while going through the project study.

These limitations are as follows

58
1. LIMITATION OF DATA

The statistical data regarding the city was not available to us on secondary source of
data and to generate such data on the primary source was a task, which cannot be
achieved in such a short time.

2. LIMITATION OF TIME

The limitation of time was another constraint in the study as the study had to be
conducted in few months therefore many aspects have been left unexplored.
Research period is not just much enough to know fully about the strategies &
consumers perception

3. INHIBITIONS OF THE RESPONDENTS

The respondents did not reply the question with precision as they were busy with their
own work or they were not interested in taking part in such a research. Employees
sometimes feel hesitated while telling about their view about their marketing
strategies.

4. RESEARCH HAS BEEN CONDUCTED IN A LIMITED AREA

The research has been conducted for the BIGBAZAR(sec-31.fbd) & Spencer(Crown
Interiors Mall, Faridabad) but not all their retail outlet have been covered therefore it
has been mentioned that the research has been conducted in a limited area.

5. THE SAMPLE SIZE IS LARGE

The sample size taken of the respondents is large therefore a very rough picture of
their marketing strategies has been generated therefore this limitation has to be
considered in the study.

59
These limitations were very common and yet we came across these with a positive note and
the subsequent chapters in this report shall explain the rationality behind the structural
compilation.

60
 Conclusion
&
Suggestions

Conclusion

Given the developments and prospects, the Indian retail sector is in its nascent stage of
evolution. While there are obstacles, there are clear opportunities in modern retailing in India.
There are many lessons that India can take from other countries, which have moved along the
path of retail evolution. The retail sector has proved to be of immense significant from
macro-economic point of view. The sector’s capability to give strong growth momentum by
61
creating multiplier effects on other sectors is not in dispute. It is now necessary to cautiously
expand and develop the sector, as the government, at present, has done by permitting partial
FDI in the sector. Given the scope, the retail sector is certainly expected to fetch the long-
term economic benefits for the country.

The convenience and personalized service offered by the unorganized sector holds its future
in good stead for the future. Organized retail of late has seen a tremendous boom and is
attracting more people to the malls.

What is to be seen is how organized retail can duplicate the same level of personalized
customer service levels offered by the unorganized sector to have a higher conversion ratio.
The target audience for both the organized and unorganized retail formats remains relatively
the same. When shopping in malls, people value the experience related to the trip the most
and return most frequently for the same. Besides, while enjoying the experience they seem to
buy high ticket and items of conspicuous consumption most frequently.

Gaining and maintaining consumer preference is a battle that is never really won.
Continued and consistent branding initiatives that reinforce the consumer’s purchase decision
will, over time, land the product in consumer preference sets. Attaining and sustaining
preference is an important step on the road to gaining brand loyalty

Suggestions
1. Include more trained sales person to help customers in the store while shopping.
2. Improve quality of the products especially clothes.
3. Play good songs or soothing music in the store rather than cheap filmy songs.
4. Customer care service can be introduced
5. More branded products can be displayed in the store as people still prefer branded

62
 clothes than offered by local vendors.
6. Constant reminder of discounts through pamphlets, speakers inside the store for
inducing consumers for impulse buying.
7. Add more cosmetic products as its having a huge market of consumers attached to it.
8. Display of product should be improved so that the product is easily visible to the
consumers.
9. Proper advertisement in press and outdoor to make BIGBAZAR should be visible in
the eyes of consumers.
10. Should have parking spaces in front of every store.
11. Hire more salesgirls as in ladies section its very difficult for both the consumers and
salesman to interact with each other.
12. Regular training to sales person to improve there overall performance.
13. Customization of clothing should be given an important consideration.
14. Proper packaging and provide contrast labelling in displays of product.
15. Should apply electronic supply chain management for better inventory management.
16. Proper power back up as air conditioners are not working to their full capacity at
many stores.
17. Proper placements of Gondola in the stores as space between them are very less.
18. Proper display in the gondola and top most rack of the gondola should be used for
storing of inventory rather than display of product.
19. Should provide more festival schemes and at proper time.
20. Should use psychological pricing-more discounts by increasing the price
21. Proper display of cutlery items
22. Clothes should be in sync with fashion.

63
 Bibliography

BIBILIOGRAPHY

Books referred:

64
  Retailing Management
Pradhan, Swapna

 Retail Management – A Strategic Approach

Berman, Barry & Evans, Joel R.

 The Art Of Retailing

Lamba, A.J.

Websites:

 www.google.com

 www.wikipedia.com

 www.Spencer.com

 www.bigbazar.com

 www.indianretailindustry.com

65
QUESTIONNAIRE

66
 QUESTIONNAIRE

Dear Sir/Madam,

I Ankeet Singh student of MBA of RSMT Varanasi. I am doing my

project on “Market Comparison of SPENCER And BIGBAZAR”. Please give your
precious time for filling these details.

Name:
Age:
Profession:
Sex:

Q1) What Retail chain do you usually go to?

 Spencer
 BIGBAZAR
 Any other

Q2) How often do you visit a Coffee Shop?

 Once in a month
 Twice in a month
 Thrice in a month

Q3) How much money do you usually spend on shopping in a month?

 0-2500 Rupees
 2500-7500 Rupees
 7500-12500 Rupees
 Over 12500 Rupees

Q4) How much time do you usually spend at a Shopping mart?

 Less than 1/2 hour
 1/2- 1 hour

67
  1-2 hours
 Over 2 hours

Q5) How many people do you usually go with?

 Alone
 With 1 person
 2-4 people
 More than 4 people

Q6) Please rate the following, according to your personal choice, for both Spencer&
BIGBAZAR….

Questions Spencer BIGBAZAR

1. Quality of products: (1=Bad and 5= Excellent)

         

Accessories 1 3 4 4 5
2 5 1 2 3
         

Household 1 3 4 4 5
2 5 1 2 3
         

Lifestyle 1 3 4 4 5
2 5 1 2 3

Questions Spencer BIGBAZAR

2. Prices of products: (1=Bad and 5= Excellent)

         

Accessories 1 3 4 4 5
2 5 1 2 3

68
          

Household 1 3 4 4 5
2 5 1 2 3
         

Lifestyle 1 3 4 4 5
2 5 1 2 3

Questions Spencer BIGBAZAR

3. Staff: (1=Bad and 5= Excellent)

         

Behaviour 1 3 4 4 5
2 5 1 2 3
         

Manners 1 3 4 4 5
2 5 1 2 3
         

Helpfulness 1 3 4 4 5
2 5 1 2 3
         

Service 1 3 4 4 5
2 5 1 2 3

Questions Spencer BIGBAZAR

4. What excite you most? : (1=Bad and 5= Excellent)

         

Promotional offers 1 3 4 4 5
2 5 1 2 3

69
          

Variety of products 1 3 4 4 5
2 5 1 2 3
         

Price of the products 1 3 4 4 5

2 5 1 2 3

Questions Spencer BIGBAZAR

5. Do you ever face any problem?(Yes/No)

         

Billing Problems 1 3 4 4 5
2 5 1 2 3
         

Heavy Rush 1 3 4 4 5
2 5 1 2 3
Personnel’s lack of          

knowledge 1 3 4 4 5
2 5 1 2 3

Questions Spencer BIGBAZAR

6. Overall experience? : (1=Bad and 5= Excellent)

70
Products          

1 3 4 4 5
2 5 1 2 3
         

People 1 3 4 4 5
2 5 1 2 3
         

Ambience 1 3 4 4 5
2 5 1 2 3

*************

71