Study On The Financial Performance of Big Bazaar Finance

A Study On The Financial Performance Of Big Bazaar
Organization Study
At
BIG BAZAAR MALLESWARAM BANGALORE
Submitted in Partial Fulfilment of the Requirements of

Bangalore University for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
By
BIPROJIT DEY
REG No: 13SKCMA161
Under the Guidance of
Prof. VENKATRAMAN SUBRAMANIAN
EMPOWERING MINDS
AIMS
(ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES)
Peenya, Bangalore
2013 - 2015
DECLARATION
I, BIPROJIT DEY, hereby declare that this Organisation Study Report titled A
Study On The Financial Performance Of Big Bazaar is based on the original
study conducted by me under the guidance of Prof. Venkatraman Subramanian.
This report has not been submitted earlier for the award of any other degree / diploma by
Bangalore University or any other University.
Place : Bangalore
Date : BIPROJIT DEY

CERTIFICATE
Certified that this organization Study Report titled “A STUDY ON THE

FINANCIAL PERFORMANCE OF BIG BAZAAR ” based on an original study
conducted by BIPROJIT DEY of IIIrd Semester MBA under the guidance of Prof.
VENKATRAMAN SUBRAMANIAN Professor MBA department.
This report is based on the original study undergone and has not formed the basis for the
award of any other degree/diploma by Bangalore University or any other University.
Prof. Venkatraman Subramanian Dr. Kerron G Reddy
Professor MBA department CEO and Principal
Place: Bangalore Place: Bangalore
Date: Date:
Acknowledgement
An undertaking of work life - this is never an outcome of a single person; rather it bears the
imprints of a number of people who directly or indirectly helped me in completing the
present study. I would be failing in my duties if I don't say a word of thanks to all those who
made my training period educative and pleasurable one. I am thankful to Big Bazaar,
Malleshwaram for giving me an opportunity to do the internship in the company.
First of all, I am extremely grateful to Mr. Tarun Saha (Store Karta) for his guidance,
encouragement and tutelage during the course of the internship despite his extremely busy
schedule. My very special thanks to him for giving me the opportunity to do this project and
for his support throughout as a mentor.
I must also thank my faculty guide Prof. Venkatraman Subramanian (Faculty, Acharya
Institute of Management & Sciences) for his continuous support, mellow criticism and able
directional guidance during the project.
I would also like to thank all the respondents for giving their precious time and relevant
information and experience, I required, without which the Project would have been
incomplete.
Finally I would like to thank all lecturers, friends and my family for their kind support and to
all who have directly or indirectly helped me in preparing this project report. And at last I am
thankful to all divine light and my parents, who kept my motivation and zest for knowledge
always high through the tides of time.
Biprojit Dey
Date:
Contents :
CHAPTER CONTENTS Page No.
1.1 Introduction 1
1.2 Industry Profile 8
CHAPTER 1 1.3 Company profile 21

1.4 Products Profile 33
1.5 Competitors Profile 34
CHAPTER 2 Organization Structure 36
Functional Departments 39
3.1 Human Resource Dpmt 40
3.2 Customer Service Desk 40
3.3 Administration 41
CHAPTER 3 3.4 Logistics 42
3.5 Marketing Department 43
3.6 Sales Department 43
CHATPER 4 Ethical / Best Policies / Policies in the 45

organisation
CHAPTER 5 SWOT Analysis 48
CHAPTER 6 McKinsay 7 Model Discussion 51
CHAPTER 7 Research Problem Study 57
CHAPTER 8 Findings, Suggestions & Conclusion 70
CHAPTER 9 Bibliography & Annexure 74
LIST OF FIGURES/CHARTS
SERIAL NO. FIGURES/ CHARTS NAME

Fig. 1 Various Retail formats across value & lifestyle Segments
Fig. 2 Future Group
Fig. 3 3B Model of Management
Fig. 4 Formats of Retailing
Fig. 5 Strategy used in Big Bazaar
Fig. 6 Product Mix
Fig. 7 Organization Structure
i ) Zonal
ii) Big Bazaar
Fig. 8 Functional Departments
Fig. 9 Administrative Department
Fig. 10 Core Values
Fig. 11 Quality Policy
Fig. 12 SWOT Analysis
Fig.13 McKinsay Elements
Fig.14 McKinsay 7s Model
Fig.15 Organization Structure
Fig. 16 Current Ratio, Liquid Ratio, Gross Profit Ratio, Net profit Ratio,
Proprietors Fund, Earnings Per Share, Stock Velocity Ratio,
Inventory Turnover Ratio, Interest Coverage Ratio, Degree of
Operating Leverage, Fixed Asset
LIST OF TABLES
SERIAL NO. TABLE NAME

Tab. 1 Future Group In Brief
Tab. 2 Founder Board
Tab. 3 Company Profile of Big Bazaar
Chapter 1
1.1 INTRODUCTION
Future Group understands the soul of Indian consumers. As one of India’s retail pioneers with
multiple retail formats, Future Group connects a diverse and passionate community of Indian
buyers, sellers and businesses. The collective impact on business is staggering. Around 300
million customers walk into the stores each year and choose products and services supplied
by Future Group's 30,000 small, medium and large entrepreneurs and manufacturers from
across India. And this number is set to grow.
Future Group employs 30,000 people directly from every section of our society. They source
their supplies from enterprises across the country, creating fresh employment, impacting
livelihoods, empowering local communities and fostering mutual growth.
Future Group believe in the ‘Indian dream’ and have aligned our business practices to their
larger objective of being a premier catalyst in India’s consumption-led growth story. Working
towards this end, Future Group are ushering positive socio-economic changes in communities
to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soar once again. This approach
remains embedded in Future Group's ethos even as they rapidly expand their footprints
deeper into India.
Future Group makes every effort to delight its customers, tailoring store formats to
changing Indian lifestyles and adapting products and services to their desires. Future Group
operate some of India’s most popular retail formats. Across value and lifestyle segments,
Future Group's multi-format retail strategy caters to the complete consumption needs of a
wide cross-section of Indian consumers.
As modern retail drives fresh demand and consumption in new categories, Future
Group's strategy is based on a deep understanding of Indian consumers, the products they
want, and making these products available in every city, in every store format.
1 | A c h a r y a I n s ti t u t e o f M a n a g e m e n t & S c i e n c e s
DIGITAL
LIFESTYLE
Connecting the Youth

Style for Every
of India
Occasion
VALUE HOME
Helping India Save Building Dreams in a

New India
FIG. 1: Various Retail Formats
Future Group offers innovative offerings at affordable prices tailored to the needs of every
Indian household.
 Pioneers in the India’s retail space, Future Group's formats are household names in
more than 93 cities and 60 rural locations across the country
 Future Group's stores cover around 17 million square feet of retail space and attract
around 300 million customers each year
 Pantaloon Retail (India) Limited focuses on the lifestyle retail segment led by the
Pantaloons and Central formats
 Future Value Retail focuses on the value retail segment through the Big Bazaar, Food
Bazaar and KB’s Fair price formats.
BRANDS KNOWLEDGE SERVICES RETAIL

SHOPPING MALLS
E-TAILING
LEISURE CAPITAL
FUTURE GROUP
&
ENTERTAINMENT
CONSUMER FINANCE INSURANCE
LEARNING
&
DEVELOPMENT MEDIA VENTURES LOGISTICS
Tab. 1 : Future Group in Brief
Type Private
Industry Retail
Founder(s) Mr. Kishore Biyani (MD & CEO)
Headquarters Mumbai, Maharashtra, India
Products Discount, grocery and convenience stores, cash and

carry, hypermarkets, financial services
Employees 35,000
Divisions Pantaloon Retail, Future Value Retail Limited
Websites www.futuregroup.in
www.futurebazaar.com
Tab. 2 : Founder Board
Kishore Biyani
Group CEO, Future Group
Rakesh Biyani
Director, Future Group
Vijay Biyani
Anil Biyani
Sunil Biyani
Fig. 2 : Future Group
Fig. 3 : 3B Model of Management
1.1.2 VISION
“Future Group shall deliver everything, everywhere & every time for every customer in
the most profitable manner”
1.1.3 MISSION
 We share the vision & believe that our customers & stakeholders shall be served
only by creating & executing the future scenarios in the consumption space
leading to economic development.
 We will be the trendsetters in evolving:
 delivery formats
 Creating retail reality.
 Making consumption affordable for all customer segments –for classes &
for masses.
 We shall infuse Indian brands with confidence & renewed ambition.
 We shall be:
 Efficient
 Cost conscious
 Committed to quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility & united determination
shall be the driving force to make us successful.
1.2 INDUSTRY PROFILE
The contracting global economy, advances in technology, a proliferationin the number of

shopping channels, and an increasingly well-informed and mobile consumer base are altering
the means, modes, and manner in which consumers shop.
1.2.1 HISTORIES AND EVOLUTION OF RETAIL INDUSTRY:

India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise
25% yearly being driven by strong income growth, changing lifestyles, and favourable
demographic patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 22.5 billion by 2015 from the current size of US$ 18.5
billion. Shopping in India has witnessed a revolution with the change in the consumer buying
behaviour and the whole format of shopping also altering. Industry of retail in India which
has become modern can be seen from the fact that there are multi- stored malls, huge
shopping centres, and sprawling complexes which offer food, shopping, and entertainment all
under the same roof.
India retail industry is expanding itself most aggressively; as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2015, India
may have 600 new shopping centres.
In the Indian retailing industry, food is the most dominating sector and is growing at a rate of
9% annually. The branded food industry is trying to enter the India retail industry and convert
Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists
of non- branded items.
India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combined effort.
1.2.2 RETAIL IN INDIA: HISTORICAL PERSPECTIVE
Retailing provides a crucial link between producers and consumers in a modern market
economy. The performance of this sector has a strong influence on consumer welfare.
Retailers not only provide consumers with a wide variety of products, but also a wide range
of complementary services (such as assurance of product delivery), which can lead to more
informed choice and greater convenience in shopping. They also provide producers with
much needed information on consumers demand pattern. Productivity and efficiency in retail
operations lowers price level and reduce distortions in the price structure. Through backward
and forward linkage, performance of retailing services affects the performance of interlinked
sectors such as tourism, recreational and cultural services, manufacturing of consumers goods
agro-good producing industries etc.
The present paper is an attempt to explore retailing in India in Historical perspective.

Retailing is the largest private industry in India and second largest employer after agriculture.
The sector contributes to around 10 per cent of GDP and 6-7 per cent of employment. With
over 15 million retail outlets, India has the highest retail outlet density in the world. This
sector witnessed significant development in the past 15 years – from small-unorganized
family-owned retail formats to organized retailing. Liberalization of the economy, rise in per
capita income and growing consumerism has encourage larger business houses and
manufactures to set up retail formats; real estate companies and venture capitalist are
investing in retail infrastructure. Many foreign retailers have also entered the market through
different routes such as wholesale cash-and-carry, local manufacturing, franchising, test
marketing, etc. With the growth in organized retailing, unorganized retailers are fast changing
their business models and implementing new technologies and modern accounting practices
to face competition. The retailing sector in India has undergone significant transformation in
the past 10 years. Traditionally, Indian retail sector has been characterized by the presence of
a large number of small-unorganized retailers. However, in the past decade there has been
development of organized retailing, which has encouraged large private sector player to
invest in this sector. Many foreign players have also entered India through different routes
such as test marketing, franchising, and wholesale cash-and-carry operation. With high GDP
growth, increased consumerism and liberalization of the manufacturing sector, India is being
portrayed as an attractive destination for foreign direct investment (FDI) in retailing. At
present this is one of the few sectors, which has 51% FDI in multi-brand retail sector & 100%
FDI in single brand. On one hand farmers will benefit from it but on the other hand small
traders feel they will not be able to withstand the competition. In India, the retail sector is the
nd
2 largest employers after agriculture. In fact due to wide network of retailing in India it is
known as nation of shopkeepers. There are about 12 millions retail outlet spread across India
and the country has the highest density of shops in the world i.e. one shop for every 20 to 25
families or 11 retail shop for every 1000 persons. While, it is only four shops per 1000 in
USA. Retailing in India provides employment to about 7% of total work force in the country
and contributes about 14% to GDP of India. However the retailing sector in India is highly
fragmented and consists predominantly of small, independent and owner managed shop.
The Global Retail Development Index developed by A.T Kearney has ranked India first
among the top 30 emerging markets in the world. A look at the landscape of most of the cities
in India shows the rapid phase of change. This changes in reflection of the changes in the
Indian consumers his lifestyle and his habits. Goldman Sachs has estimated that the Indian
economic growth could actually exceed that of China by year 2015. It is believed that the
country has the potential to deliver the fast growth over the next 50 years. It took 10 years for
the first 2500 organized retail stores to emerge in India; the next 2500 could easily get added
in the next 5 years. Formats new to the India market place have emerged rapidly over the past
ten years. There is little doubt that retail in India is revelling up for an exciting phase ahead.
1.2.3 EVOLUTION OF RETAIL IN INDIA:
The origins of retail are old as trade itself. Barter was the oldest form of trade. For centuries,
most merchandise was sold in market place or by peddlers. Medieval markets were dependent
on local sources for supplies of perishable food because Journey was far too slow to allow for
long distance transportation. However, customer did travel considerable distance for specialty
items. The peddler, who provided people with the basic goods and necessities that they could
not be self sufficient in, followed one of the earliest forms of retail trade. Even in prehistoric
time, the peddler travelled long distances to bring products to locations, which were in short
supply. They could be termed as early entrepreneurs who saw the opportunity in serving the
needs of the consumers at a profit. Later retailers opened small shops, stocking them with
such produce. As towns and cities grew, these retail stores began stocking a mix of
convenience merchandise, enabling the formation of high-street bazaars that become the hub
retail activity in every city.
1.2.4 TRADITIONAL RETAIL FORMAT IN INDIA:
It is important that for centuries now, India has been operating within her unique concept of
retailing. Retailing in its initial period was witnessed at the weekly Haats or Gathering in a
market place where vendors put on displays their produce. Off course this practice is still
prevalent in many towns and cities in India: then the market saw the emergence of the Local
banias and his neighbourhood Kirana shop. In fact these were the common local mummy-
daddy or multipurpose departmental store located in the residential areas such shops stocked
goods and multipurpose utility and were with the vision of providing convenience at the
doorstep of the consumer.
While barter would be considered to be the oldest form of retail trade, since Independence,
retail in India has evolved to support the unique needs of our country, given its size and
complexity. Haats, mandis and melas have been a part of India landscape. They will continue
to be present in most part of the country and form an essential part of life and trade in various
areas.
1.2.5 EMERGENCE OF ORGANISED RETAIL IN INDIA:
The emergence of first phase of organized retailing in India can be traced back when a
shopping centre into existence in the year 1869 with Mumbai Crawford Market. After that, in
the year 1874 Hogg market, popularly and better known as new market came into existence
in Kolkata. This shopping centre was designed by an East Indian Railways Co. Architect R.R.
Banya and was named after the then municipal commissioner of Kolkata, Sir Stuart Hogg.
Earlier the Hogg market even had a garden with a beautiful fountain adding to its ambience
and benches too for tired shoppers.
Today, the New Market continues to be a premier shopping area in Kolkata despite a part of it
being incinerated in late 1985. Its redbrick Gothic clock tower today bears testimony to the
past Grandeur of this first shopping centre in India. Today from linen to cakes and fruits to
fishes everything is available at the New Market Atta reasonable price and this has made the
New Market sustain its popularity among the metro customers of Kolkata. The tenant mix of
this first shopping centre is unique as it has a large number of 2000 stalls, which are
organized in an order of merchandize. There are rows of stalls dealing with one particular line
of Goods.
A retail researcher by name Christine Furedy in 70s has observed in her article in the capital
th
on 24 Dec. 1979 tracing the emergence of the New Market, thus “The most complex retail
business of late nineteenth century Kolkata, establishment which were to dominate the
modern retail sector, were the departmental stores. Although everyone has closed its doors,
many Calcuttians still remember the name or recognize their converted, subdivided building:
Francis, Harrison and Hathaway; Hall and Anderson; the Army and Navy stores; white a way;
laid low and Co. In their scope and outreach these shops rivalled those to be found in cities of
the same size in Britain, Europe or the United States”.
The second phase of development of organized retailing can be traced back to the year 1931
when Bata shoe Co. took lead in opening its chain stores at various cities & towns. DCM and
Raymond’s followed it extensively.
The earliest seed of the so-called specialty malls can be traced to shopkeepers who stocked
goods of the same product category in a particular locality. If one were to go back to the early
80s, it can be said that organized retail, to a great extent was visible in the functioning of
stores such as Akbar Ally in Mumbai and Nilgiris and Spencer’s in Chennai. These stores
later evolved into multi-chain outlet and were the first to bring on the ‘onset of organized
retail’ in India.
The evolution of PDS (Public Distribution System) of Grains in India having its origin in the
rationing system introduced by the British during World War II was example of single largest
retail chain in the country the canteen stores Department and the Post Offices in India are also
among the largest network of outlets in the country, reaching populations across state
boundaries. The Khadi and Village Industries (KVIC) was set during post Independence and
today it has more than 7000 stores across the country.
While Independence retail stores like Akbar Ally's, Vivek’s and Nallis have existed in India
for a long time, Reliance, Garden Silk Mills, Madhura Garments, Arvind Mills etc. have set
up show rooms for retail sale of their branded products.
At present India is rapidly evolving in to an existing and Competitive market place with
potential target consumers in both the rich and middle class segments. Manufacturer owned
and retail chain stores are springing up in urban area to market consumer goods in a style
similar to that of mall in more affluent countries. Even though big retail chains like
Crossroad, Saga and Shopper’s stop are concentrating on the upper segment and selling
products at higher prices, some like A.V Birla Retails More, RPG’s Spencer’s, Food World
and Big Bazaars are tapping the huge middle class population. During the past two years,
there has been tremendous amount of Interest in the Indian retail trade from global majors as
well as over the years, International brands like McDonalds, Swarovski, Lacoste, Domino’s,
Pepsi, Benetton among a host of others have come in and thrived in India.
1.2.6 RETAIL FORMATS IN INDIA:
In India, at present, retailing activities are being carried through wide varieties of formats
ranging from ‘pheri wala’ in streets to Modernized Malls in Metro cities. However from
study point of view these formats can easily classified into following three Groups.
Fig. 4 : Formats of Retailing
A) TRADITIONAL FORMATS :
1. ITINERANT SALESMAN : It is a type of direct selling, which stated centuries

ago. It is an example of door-to-door office-to-office delivery or marketing. Morning milk
man and sabji wala are the most famous examples of this category. This type of format
has been very popular throughout India in coping with daily needs. In rural areas this
sales man use cycles, for carrying their stock for display of Goods.
2. HAATS : Haats are the unique examples of traditional malls in India. Just like Malls,
different sellers sells different types of items along with the sale of vegetables, fruits,
sweets, chart etc. Some entertainment arrangements are also made in available in these
haats. There was tendency in rural as well as semi-urban area in India for visiting these
haats with family members as a part of picnic cum purchasing programs. In fact Haats are
periodic markets (generally organized once in week or fortnight at a particular place &
time) that form a major part of the rural market system in India. In other words the term
Haats refers to locations, which witness a public gathering of buyers and sellers at fixed
time, and fixed locations. On account of organization of these haats these are called with
the name of a particular day also such as Mangal Bazaar, Budh Bazaar etc. According to
one estimate about 42,000 haats are organized in our country.
3. MELAS : Melas are fairs & they can range from commodities fairs to religious fairs.
Virtually every state in India has meals for which it is known. It is estimated that more
than 2500 melas are held annually in the country. It is also estimated that the average
outlets in every Mela would be more than 800 & the average sale per mela would be Rs.
143 lakhs. Nauchandi is an example of important annual mela in Meerut, at many places
such as Gwalior, Aligarh, Bulendshahr annual exhibitions are organized. At government
level, a number of fairs such as book fair, trade fair and specific commodity fair are
organized by Trade Fair Authority of India.
4. MANDIS : Mandis are markets set up & regulated by state government for the sale
of agricultural produce directly from farmers. At present the number of such markets
stand at 7521. These mandis are playing significant role in providing better prices to
farmers.
B) ESTABLISHED FORMATS :
1. KIOSKS : A kiosk is a small freestanding pavilion or stall often open on one or more
sides and used for information sales and promotion. Generally a kiosks is placed in a
shopping centre, a bus stand or near by the prospective customers.
2. KIRANA SHOP & INDEPENDENT STORES : This is one of the important &
popular established formats of retailing in India. These shops are usually shops with a very
small area, stocking a limited range of products, varying from region to region according to
the need of the clientele or the whims of the owners.
These are low cost structures mostly owner operated, have reliable real estate & labours cost.
Consumer familiarity that runs from generation to generation is one big advantage enjoyed by
such Kirana Shops.
It is worth mentioning that India retail sector has traditionally been structured around 3 small
retail entities – the grocer, the general store and the chemist. The grocer stocks non-packaged,
unbranded/Generic commodities such as rice, floor, pulses, spices, salt etc. for sale. The
Grocery Stores or Kirana shops located in neighbour-hood centres also sale branded &
packaged fast moving consumer goods.
The General store stocks only branded & packaged FMCGs. These are generally located
prominently in the neighbourhood centre & residential areas. Chemists are a part of
dispensing pharmaceutical. Products, sales branded FMCGs such as personal Carrier
Products & health food. Alongside the three retail outfit, exist a large segment of smaller,
unorganized players - paan, beedi stores which stock products in sachets, batteries,
confectionary & soaps, bakery & confectioners, fruit juice/tea salts, ice-cream parlour,
electrical, furniture & hardware stores.
Kirana shops & independent small stores provide a wide variety of facilities to their
customers, such as telephone order credit facilities, home delivery, customization on account
of offerings & packaging & specific products produced on order in case of stock out. More
importantly they’re available next door to offer personalized service. In this way their able to
develop a strong relationship with their customer, who over a period of time, become
extremely loyal.
3. SUPER MARKETS/HYPER MARKETS : These are large (90,000 square feet

plus) self-service stores selling a variety of products at discounted price. The best practice
chains in this format are Carrefour (France) Wal-Mart (US). Supermarkets tend to be located
in key residential markets and malls and offer competitive prices due to economics of scale in
logistics and purchasing. The format is new to India and some important players in this field
are Food World, Big Bazaar. Indian Super Market are smaller than others countries.
4. DEPARTMENTAL STORES : These large stores primarily sell non-food items
such as apparel, footwear household products. They stock multiple brands across product
categories, though some of them focus as their own store labels. Departmental stores are
found on high streets and as anchor shops of shopping malls. Some department stores chains
are opened in India e.g. Shopper’s stop, Westside and Ebony.
5. SPECIALTY CHAINS : These outlets focus on a particular brand as product

category, usually non-food items and are located on high streets and in shopping malls. The
most famous specialty chains include Gap, Levi’s and Benetton.
6. DISCOUNT STORE : It is a general merchandise retailer that offers a wide variety of

merchandises limited service and low prices. Subhiksha and Margin free markets are
operating in this format in India.
7. WHOLESALE CASH AND CARRY : The wholesale cash and carry operation is
defined as any trading outlets where goods are sold at the wholesale rate for retailers and
business to buy. The transactions are only for the business purpose and not for personal
consumption. Metro, cash and carry, Gmbh of Germany entered the India in this format.
8. CONVENIENCE STORE : It is a retail business of less than 5,000 square feet with
primary emphasis on providing the public a convenient location to quickly purchase an
assortment of food, gasoline and other consumable products. They are usually open seven
days a week for extended hours
C) CO-OPERATIVE SHOPS/GOVT. ORGANISATION :
Cooperative stores in India are the result of the cooperative movement that can be traced to
the Pre-independence period. They emerged as a reaction to the feudal system & attempted to
place the fruit of labour in the hands of the producer himself to make him relevant. The
Cooperative movement was strengthened after independent in Western India?
A consumer cooperative is a retail institution owned by member customers. A consumer
cooperative is generally formed either because of dissatisfied consumers who's needs are not
fulfilled by the existing retailers or on account of initiative by enlightened consumer.
D) MOTHER DAIRY, DELHI & FRUIT & VEGETABLE PROJECT,

DELHI :
Mother Dairy, Delhi & the fruit & vegetable project Delhi, set up by the National Dairy
Development Board in 1974, 1986, respectively, were merged to form Mother Dairy Fruit &
Vegetable Limited in April 2000.
The new Company, a wholly owned subsidiary of NDDB, is involved in marketing &
distribution of milk, milk products & horticulture produce. The companies’ dairy plant
handles more than 1.3 million litres of milk daily & undertakes its marketing operations
through 636 own milk shops & more than 6500 retail outlets in and around Delhi. Ice-creams
market
The company market horticulture produce in fresh, frozen & processed from under the brand
named 'SAFAL' through a chain of 263 own fruit & vegetable shops & more than 20000
retail outlets in various parts of the country. Fresh produce from the producers is handled at
the Companies modern processing facility in Delhi with an annual capacity of 120000 MT.
A state of the art fruit processing plant, a 100% EOU, set up in 1996 at Mumbai, supplies
quality products in the international market. The Companies unique distribution network of
bulk vending booths, retail outlets & mobile units gives it a significant competitive
advantage.
It is worth mentioning that the consumer cooperative structure in the country has 4 tiers, with
the National Cooperative Consumer Federation of India Ltd. (NCCF) at the national level.
Thirty State Cooperative Consumers Organization are affiliated to the NCCF, the
central/wholesale level there are 800 consumer cooperative stores. At the primary level, there
are 21,903 primary stores. In the rural area there are about 44,418 village level Primary
Agricultural Credit Societies & Marketing Societies undertaking the distribution of consumer
goods along with their normal business. In the urban & semi-urban areas, the consumer
cooperative societies are operating about 37,226 retail outlets to meet the requirement of the
consumers.
Established formats of retailing in India also include certain retail organizations initiated &
promoted by Govt. They include Canteen stores, department, CCIE, KVIC and various
cottage & Handicraft Emporium. The canteen store department has opened Canteen for Army
persons & Govt. employees providing consumer goods at constitutional prices. It has about
3400 outlets throughout the country.
E) PDS/FAIR PRICE SHOP :
The PDS or Public Distribution System would easily emerge as the single largest retail chain
existing in the country. The evolution of PDS of Grains in India has its origin in the rationing
system introduce by the British during World War II. The system was started in 1939 in
Bombay & Subsequently extended to other cities and towns. By the year 1946, as many as
771 cities/towns were covered. The system was abolished post war, however, on at attaining
Independence India was forced to reintroduce it in 1950 in the face of renewed inflationary
pressures in the economy.
The system, however, continued to remain an essentially urban oriented activity. In fact,
towards the end of the First 5-year plan (1956) the system was closing its relevance due to
comfortable food grains availability. At this point in time, PDS was reintroduced and other
essential commodities like sugar, cooking coal & kerosene oil were added to the commodity
basket of PDS. There was also a rapid increase in the Ration shop and their number went up
from 18000 in 1957 to 51000 in 1961. Thus, by the end of the second 5 year Plan, PDS had
changed from the typical rationing system to a social safety system, making available food
grains at a 'fair-price' so that access of household to food grain could be improved & such
distribution could keep a check on the speculative tendencies in the market. The PDS has
been functioning for more than 4 decades now and its greatest achievement lies in preventing
famines in India.
F) CONVENIENCE SHOPS :
These shops are relatively small shops that are located near residential areas, are open for
long house & 7 days a week and offer a limited line of convenience products like beverages,
ready to eat snack (Pastry, Sandwiches) bread, eggs, milk, confectionary etc. These shops
have been quite common throughout the country.
G) SPECIALTY SHOPS :
A Specialty shop is a retail shop displaying merchandise, which has narrow product line,
specializing in a particular type of merchandise & offering, specialized service to customers.
Generally these shops concentrate on a specific item such as Appeal, Jewellery, Fabric,
Sporting Goods, and Furniture etc. Specialty shop can be sub classified by the degree of
narrowness in their product line. E.g. a clothing stock would be a single line shop, a men’s
clothing shop would be limited time shop & a men’s shirt store would be a super specialty
shop. Such shop have always played significant role in relating of consumer durables
throughout the country but particularly in urban & sub-urban areas.
1.2.7 RURAL MALLS HAVE MADE A BEGINNING:
Rural retailing is an important segment of the retail industry and it is only lately that
companies are making investments in this area. ITC launched Chaupal Sagar, the first rural
mall, with a variety of products and offering farmer’s tools to adapt to new technologies and
methods of farming and selling their produce. The DCM Sriram Group has opened a Hariyali
Bazaar, offering farm-related services and plans to increase their product line to a full-fledged
grocery store. Godrej Group has opened Adhaar, a one-stop shop for farmers, focusing on
farm related products. Escorts and Tata Chemicals are also in the process of setting up agri-
stores targeting the rural market
1.2.8 HYPERMARKETS:
In commerce, a hypermarket is a superstore combining a supermarket and a department store.

The result is an expansive retail facility carrying a wide range of products under one roof,
including full groceries lines and general merchandise. In theory, hypermarkets allow
customers to satisfy all their routine shopping needs in one trip.
It is often a very large establishment; hypermarkets offer a large variety of products such as
appliances, clothing and groceries.
The hypermarket appeared first in France at the beginning of the sixties as a synthesis of the
main features of modern retailing. But in France, the decline of this retail format seems to
have begun and Spain could follow quickly. In the same time, the German hard-discounters
continue their invasion. According to the retail life cycle theory, this paper displays curves to
demonstrate the evolution of this retail concept in France, Spain and Italy and tries to evoke
some managerial and strategic issues. The retail wheel seems to go on turning!
1.2.9 HISTORY OF HYPERMARKET:
At the end of the 1950's and at the beginning of the 1960's, many French retailers came to
United States to listen to Bernardo Trujillo, director of the International Management
Systems Seminars. One of his arguments during his seminars on modern retailing was: “No
parking, no business”. Most of these French retailers came back to France very enthusiastic.
A new concept then was launched in the French market: the hypermarket.
The hypermarket was defined as a retail concept with a floor space over 2,500 m 2. Every kind
of products was supposed to be sold through self-service techniques even though there are
today exceptions. Despite several bank support refusals, the families Fournier, Badin, and
Defforey, native from Switzerland, decided to open the first hypermarket. It was in the
Southern Paris in 1963 under the name Carrefour. Its size was exactly 2,500 m2. This first
hypermarket was immediately a big success.
Ten years after, there were more than 250 hypermarkets in France. Today, there are more than
1,300 hypermarkets in this country. And the group Carrefour, composed of several chains, is
now the second world largest retailer after Wal-Mart. This public company has more than
10,000 stores in the world today located in more than 30 countries. Carrefour began its
internationalization process very early in the 1970's. The group is present of course in Europe
but also in South and Central America, and in North Africa. In Asia, Carrefour is very
successful in China and Thailand but not in Japan where they located only four hypermarkets
at this time.
BIG BAZAAR
Type Public
Industry Retailing
Founded 2001
Headquarters Mumbai, Maharashtra, India
Products Hypermarket
Revenue 11500 crores (US$1.8 billion) crores (in 2014) (Big Bazaar and
Food Bazaar combined)
Employees 36000 people
Parent Future Group
Divisions 214
Website http://www.pantaloonretail.in/businesses/big-bazaar.html
1.3 COMPANY PROFILE
Tab. 3 : Company Profile of Big Bazaar
Big Bazaar is the largest hypermarket chain in India. As of June 2, 2014 there are 214 stores
across 90 cities and towns in India covering around 16 million m2 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.
Future Bazaar is an online business venture of Future Group, which sells an assortment of
products such as fashion, which includes merchandise for men and women, mobile
accessories, mobile handsets and electronics like home theatres, video cameras, digital
camera, LCD TVs, kitchen appliances and many more.
 Discounts: “Hafte ka sabse sasta din was introduced by the Big Bazaar, wherein extra
and special discounts were offered on Wednesday every week, to attract the potential
buyers into their store.
 Security check: At each exit of Big Bazaar, they use alarm systems or Electronic
Article Surveillance system, which detects the products that has attached tags or not.
FUTURE GROUP ALSO OWNS
 Central Hypermarket
 Brand Factory
 Pantaloons
 e - ZONE
 Hometown
 futurebazaar.com
 KB's Fair Price
1.3.1 HISTORY
2001 to 2010
Big Bazaar was introduced by the Future Group in September 2001 with the opening of its
first four stores in Kolkata, Indore, Bangalore and Hyderabad within a period of 22 days.
Started by Kishore Biyani, Big Bazaar was launched mainly as a fashion format selling
apparel, cosmetics, accessories and general merchandise. Over the years, the retail chain has
included in its portfolio a wide range of products and services, ranging from grocery to
electronics.
The current retail formats of the Future Group include Big Bazaar, Food Bazaar, Electronic
Bazaar and Furniture Bazaar. According to Kishore Biyani, the inspiration behind this
entire retail format was from Saravana Stores, a local store in T. Nagar, Chennai. Big Bazaar
is popularly known as the ‘Indian Wal-Mart’ today.
In the second year of operations, Big Bazaar tied up with Indian banking giant ICICI Bank
and launched the Big Bazaar ICICI Bank Card. In the same year, the first Food Bazaar store
was also launched at High Street Phoenix mall in Mumbai, marking the retailer’s entry into
dedicated food retail.
In 2003, Big Bazaar made its foray into small towns and cities. The first store in this category
was launched that year in Nagpur. The franchise also welcomed its 10 millionth customer at
its new store in Gurgaon in the same year.
Over the next two years, Big Bazaar consolidated its position in the Indian retail landscape.
This phase of growth included the setting up of the Mumbai store in Lower Parel, which
registered a record Rs 10 million turnover in a single day on Diwali-eve in 2004. In 2005, the
first Big Bazaar Exchange Offer was launched, which has quickly gained popularity among
customers.
In 2006, further changes in loyalty marketing took place with the launch of the housewife-
centric credit card, Shakti. Jewellery store ‘Navaras’ was also launched that year within Big
Bazaar stores which became the first store-in-store concept to be launched by the brand.
Another dedicated retail format launched in 2006 is Furniture Bazaar.
In 2007, Big Bazaar partnered with a shopping portal Futurebazaar.com and expanded its
retail footprint to 50 stores.
The following year, 2008, witnessed by far the fastest growth in terms of retail expansion for
Big Bazaar, with the launch of the 101st store. Joining the league of India’s Super brands and
voted among the top ten service brands in the country by the Pitch-IMRB international
survey, Big Bazaar became much more than a household name.
The year also saw the launch of the Monthly Bachat Bazaar (Monthly Budget Market)
campaign, which provided significantly low prices and gave discounts on bulk purchases in
the first week of the month.
Over the next two years, Big Bazaar carved its own niche in modern retail and became the
largest brand in the hypermarket format. Capturing one-third of the food and grocery market
in modern retail, celebrity endorsements and tie-ups with other brands allowed it to enhance
its retail footprint. In 2009, Big Bazaar won the CNBC Awaaz Consumer Awards for the third
consecutive year. It was adjudged the Most Preferred Multi Brand Food & Beverage Chain,
Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop.
2010 to present
On successful completion of 10 years in the Indian retail industry, in 2011, Big Bazaar came
up a new logo with a new tag line: "Naye India Ka Bazaar.
In 2012, Big Bazaar signed a multi-million dollar deal with Cognizant Technology Solutions
for the development of an IT infrastructure, encompassing Future Group’s entire network of
stores, warehousing and data centers.
Recently, Big Bazaar announced its plans to add more retail services to its portfolio such as
grinding, de-seeding and cutting of fruits and vegetables.
1.3.2 OPERATIONS
Various formats and store concept
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. Since its launch in 2001 in metro cities like Kolkata, Bangalore and Hyderabad, Big
Bazaar is the largest Hypermarket chain with presence in 90 cities and towns across the
country
1.3.3 CSR ACTIVITIES
As a part of Future Group, Big Bazaar is involved in various social activities that include
green initiatives for the community, blood donation camps, Diwali celebrations with
orphanages, visits to orphanages and other NGOs helping underprivileged children. These
activities usually involve all members of the management as well as staff of Big Bazaar.
• In September 2011, Future Group signed a strategic partnership with the Himachal Pradesh
Government to directly source, market and promote the state’s products and services through
its Big Bazaar stores under the brand ‘Himachal’. The aim of this partnership is to aid the
development of various ‘source-to-market’ initiatives to enhance livelihoods for more than
25,000 families in the state.
• Big Bazaar created a platform called Yatra to provide women of self-help groups across
various towns and regions of Maharashtra and Gujarat the opportunity to market their wide
assortment of indigenous food and non-food products. As part of the programme, women
from over 30 regional self-help groups were invited, encouraged and helped to set up stalls to
exhibit their products at Big Bazaar stores.
• Big Bazaar Mysore started offering a free wholesome meal to all its customers, who in
return contribute ‘Shraddha Anussar’ for a community cause. In other words, the customers
donate any amount for the meal which would be used for a local, regional or topical cause.
1.3.4 SCHEMES & INNOVATIONS
The introduction of ‘Sabse Sasta Din’ (Cheapest Day) in the year 2005 was a turning point
for the Big Bazaar franchise. As part of this effort, the Republic Day holiday was used to
ensure that consumers visited Big Bazaar outlets across the country in large numbers to get
required household items at cheaper rates.
Taking cue from this highly successful concept, another initiative was introduced, named the
‘Purana do aur naya lo’ (give old and get new) scheme. In this scheme, consumers were
asked to bring and sell old clothes, utensils and other household items in exchange of
discount coupons.
The concept proved to be a success yet again as people from across the country responded
spontaneously, in spite of the different preconditions associated with it.
The franchise further inaugurated the concept of ‘Hafte ka sabse sasta din’ (Cheapest Day
of the Week), wherein Wednesday was designated to be the day when special discounts were
offered to consumers during a week.
 Wednesday Bazaar
The concept of Wednesday Bazaar was promoted as ‘Hafte Ka Sabse Sasta Din’ (Cheapest
Day of the Week). Initiated in January 2007, the idea behind this scheme was to draw
customers to stores on Wednesdays, the day when consumer presence is usually less.
According to the chain, the aim of the concept was ‘to give homemakers the power to save
the most’.
 Sabse Sasta Din
Big Bazaar introduced ‘Sabse Sasta Din’ (Cheapest Day) with the intention of attaining a
sales figure of Rs 26 crores in a single day. The concept became such a hit that the time
period for the offer had to be increased from one day to three days in 2009 (January 24 to 26)
and to five days in 2011 (January 22 to 26).
 Maha Bachat
The concept of ‘Maha Bachat’ (Mega Saving) was introduced in the year 2006 as a single
day campaign with attractive promotional offers across the company outlets. Over the years,
the concept has grown to become a six-day biannual campaign. During this campaign,
attractive offers are given in all the value formats including Big Bazaar, Food Bazaar,
Electronic Bazaar and Furniture Bazaar.
 The Great Exchange Offer
Introduced on February 12, 2009, ‘The Great Exchange Offer’ allows customers to exchange
their old goods for Big Bazaar coupons. The coupons can be redeemed later for buying brand
new goods from Big Bazaar outlets across the nation.
1.3.5 ADVERTISING CAMPAIGNS & MARKETING INITIATIVES
In view of the increasing competition in the retail market, Big Bazaar has introduced certain
steps to keep itself updated and continue promoting the band.
Advertising initiatives
Big Bazaar has recently launched a 360-degree promotion drive covering the three prime
media, television, print and social media, to mark the launch of the new logo. The entire
media campaign was developed by Mudra Communications as Big Bazaar celebrating April
Utsav on 2013. They Offering Rs. 50 off on Rs. 500 or Rs. 100 off on Rs. 500 or Rs. 200 off
on Rs. 500 coupon through missed call.
1.3.6 STRATEGY USED IN BIG BAZAAR
3-C Theory
According to Kishore Biyani's 3-C theory, Change and Confidence among the entire
population is leading to rise in Consumption, through better employment and income which
in turn is creating value to the agricultural products across the country.
Big Bazaar has divided India into three segments:
1. India one: Consuming class which includes upper middle and lower middle class
(14% of India's population).
2. India two: Serving class which includes people like drivers, household helps, office
peons, liftmen, washer men, etc. (55% of India's population) and
3. India three: Struggling class (remaining 31% of India's population).
Fig. 5 : Strategies Used in Big Bazaar
While Big Bazaar is targeted at the population across India one and India two segments,
Aadhaar Wholesale is aimed at reaching the population in India three segment. With
this, Group emerged as a retail destination for consumers across all classes in the Indian
society.
1.3.7 FOUR P’S OF BIG BAZAAR
PRODUCT MIX
Fi
g. 6 : Product Mix
PRICE MIX
 Value Pricing (EDLP)
 Promotional Pricing
 Low Interest Financing
 Psychological Discounting
 Special Event Pricing
 Differentiated Pricing
 Time Pricing
 Bundling
PLACE MIX
 Initially Identifies Future/Potential development areas.
 Acquire such areas at an early phase before the real estate value booms.
 Located at high traffic areas.
 Design to look crowded.
PROMOTION MIX
 “Saal Ke Sabse Sasta 3 Din”
 Future Card(3%Discount)
 Advertising(Print ads, TV Ads, Radio)
 Brand Endorsement by M.S Dhoni
 Exchange Offer
 Weekend Discount
 Point of Purchase Promotion
1.4 PRODUCTS PROFILE
The product profile of Big Bazaar is as follows. They are dealing with various types of
products and so they had divided them into various departments for the customer’s
convenience.
The departments are:
 FOOD BAZAAR
 HOME CARE PRODUCTS
 HEAD TO TOE
 FIT & HEALTHY
 BOOKS & STATIONARIES
 APPARELS & GARMENTS
 MEN & WOMEN ACCESSORIES
 KIDS ACCESSORIES
 CROCKERY & PLASTIC ITEMS
 UTENSILS
 HOME DECORS
 HOME LINEN
 GIFTS
 BAGS & TRALLIES
 FURNITURES
 ELECTRONIC GOODS
 FOOT WEARS
1.5 COMPETITORS PROFILE
Big Bazaar faces competition from other retailers of similar products & services. These
include stand alone stores in the organised & unauthorised sector, as well as other chain of
stores including Department stores.
It is because of this and the service and ambience that Big Bazaar believes have been able to
create a differentiation in the mind of the customer vis-a-vis our competitors where similar
products and Brands are available.
COMPETITORS OF BIG BAZAAR
 More
 Easy Day
 Lifestyle International
 Reliance Trend
 Wal-Mart
 Reliance
 Shoppers stop
 Vishal Mega Mart
 Local retailers
 Spencer's
 Reliance Fresh
CHAPTER 2
2.1 ORGANIZATION STRUCTURE
PRESIDENT
VICE PRECIDENT
MARKETING HR CATEGORIY FINANCE OPERATION
MANAGER MANAGER MANAGER MANADER HEAD
MAEKETING HR CATEGORI FINANCE STORE

HEAD HEAD HEAD HEAD MANAGER
Fig. 7 (i) : Zonal Organization Structure
STORE MANAGER
ASST STORE MANAGER
ADMINISTRATION
DEPT CSD LOGISTICS

MANAGER
HR
SALES
MANAG
MANAGER
ER
TEAM
MEMBERS MARKETING
MAINTANCE Security
ASST DM
CASHIERS
HOUSR
KEEPING
TEAM
LEADER
Fig. 7 (ii) : Organization Structure of Big Bazaar
Chapter 3
Functional Departments
Fig. 8 : Functional Department
3.1 Human Resource Department
The HR department of Big Bazaar is very dynamic. Employees are the biggest Strength and
asset of any organization and the HR dept. realises this very well. This is very evident from
the way the HR department handles all its employees. They take utmost care to select, train,
motivate and retain all tile employees. They have continuous developmental programmes for
all the employees.
Currently Big Bazaar Malleshwaram is employing 220 full time and 60 part time employees.
There are two shifts for the employees. The first shift employees arrive at 9am in the morning
and leave at 7.30 in the evening, while the second shift employees report at 1:30 and leave at
the time of store closing which is 10pm.
3.2 Customer Service Desk (CSD)
Every service industry today has a desk where customers can express their problems and get
them resolved. Similarly in retail stores, the customer services desk acts as the face of
the organization and listens to customers' problems and builds their trust on the
organization. Thus it is important for all stores to have a customer service desk. Customers
may approach the customer service desk (CSD) with various types of queries which may
range from asking 'where the wash rooms are' to 'what is the telephone number of the CEO of
the organisation: All such queries should be answered by the CSD with a smile on their face
and an acceptable body language.
3.3 Administration
Safety is always a concern for any business specially safety of the customers and staff. Also,
it is very essential that a store is well maintained, clean and tidy. The administration
department is in charge of the security, housekeeping, packers and loaders. They handle the
police interaction whenever required.
Fig. 9 : Administration Department
The housekeeping staffs have to maintain cleanliness of the stores and the departments. They
must make sure that cleaning of the floors is done from time to time during a day. The
security manages the entry and exit of the customers, protection against theft at the stores,
etc. Strict checking is done before a customer or employee enters the store and at the time
they are leaving.
Every product has a security tag that will prevent the customers from smuggling the product
out of the stores without paying for it. There are 3 kinds of tags: hard tag, soft tag and string
tag. These tags help to keep a track of the product and prevent theft.
3.4 Logistics
Logistics is considered to be the complete process involving planning, managing and
controlling the flow of goods and services, information, real-time data and human resources
from the point of origin to the point of destination. There is hardly any manufacturing or
marketing activity that can be achieved without the support of an effective logistical
department.
The logistics process consists of the process of integration of several aspects such as material
handling, warehousing, information, transportation, packaging and inventory. The primary
duty of an effective logistics system is to ensure geographical repositioning of unfinished
goods, and it is also concerned with the finished inventories of the organization being at the
required place at the lowest possible cost.
The various tasks performed by the department may be summarized as follows:
 Ensuring all the requirements of the customers are met on time in an efficient and safe
manner.
 To coordinate with third party logistics (3PLs).
 To ensure that there is a safe and timely dispatch of goods.
 To draft plans, policies and procedures for successful implementation of logistics
system.
 To ensure that the business goals of the organization are in synchronization with
logistics system.
 To create and maintain customer support.
 To maintain coordination with vendors, service providers and transport carriers.
 To ensure that no fraud is committed.
 To ensure timely supply and reduce inventories.
3.5 Marketing Department
Marketing concept is a customer orientation backed by integrated marketing aimed at
generating customer satisfaction as the key to satisfying organizational goals. For a firm
in order to implement the marketing concept it has to focus its attention on the consumer,
ascertain his/her needs, discuss and wants before
Every Brand appeals to individual customers in different ways. Good customer service is
the life blood of any business. Good customer service is all about attending to existing
and potential customers. This maintaining good relationship with the customers is the key
to business success and hence the concept relationship marketing.
Traditionally, marketers have located their target market segments, presented their offer,
and made the sales. It's always been a single step process. Relationship marketing looks at
customers and clients over a longer term
3.6 Sales Department
This department is responsible for the collection of sales amount i.e., cash sales. There are
in all 25 cash counters in the Store. There is a Head Cashier to whom all the cahiers report
and submit the total sales amount collected throughout the by the cashiers. In addition to
cash all leading credit and debit cards are accepted at no extra charge. Also Big Bazaar
vouchers and Sodexho coupons are also accepted.
Chapter 4
ETHICAL/BEST PRACTICES/POLICIES IN THE ORGANIZATION
Fig. 10 : Core Values
1. INDIANNESS: Confidence in ourselves.
2. LEADERSHIP: To be leader both in business & thought.
3. RESPECT & HUMILITY: To respect every individual & be humble in our conduct.
4. INTROSPECTIVE: Leading to purposeful thinking.
5. OPENNESS: To be open to receptive to new ideas, knowledge & information.
6. VALUING & NATURING RELATIONSHIP: To build long term relationship.
7. SIMPLICITY & POSITIVITY: Simplicity & positivity in our thought, business &
action.
8. ADAPTABILITY: To be flexible & adaptable to meet challenges.
9. FLOW: To respect & understand the universal laws of nature.
5.1.2 QUALITY POLICY:
Fig. 11 : Quality Policy
(A) PRICE GUARANTEE: In within 2 days of purchase if a customer finds a product of

same brand or quality available at lesser price, the customer can bring it back within 10 days
with the cash memo & we will show the price difference.
(B) QUALITY GUARANTEE: All products sold at Big Bazaar are guaranteed to be at a
good price & of good quality.
(C) EXCHANGE GUARANTEE: The exchange of any product that have been bought
from Big Bazaar & are not satisfied by the customer can be return back with the cash memo
within 15 days from purchase.
Chapter 4
SWOT ANALYSIS
Fig. 12 : SWOT Analysis
STRENGTHS:
 High brand equity.

 Better understanding of customers helping the company to serve them better.
 Vast range of products under one roof helping in aerating customer & their family.
 Diversified business operating all over India in various retail formats.
 Ability to get products from customers at the rate of discounted price due to the scale
of business.
 Professional management.
 Good employee & employer relationship.
 Strong cultural ethics & values are followed.
 Provides loans for purchase of furniture & electronic products.
 Provides home delivery facilities to customers
WEAKNESSES:
 High cost of operation due to large fixed cost.

 Specific items are not consistently available.
 Poor supply chain management & weak support infrastructure
 Unable to meet store opening targets.
 Unavailability of popular brand items with regard to clothing.
 Weak in technology.
OPPORTUNITIES:
 Population of the country is growing where the scope of the market is kept on
increasing for the retail sector.
 Can enter into the production of various products due to its in depth understanding of
customer’s taste & preference.
 Growth in the income of the customers.
 Expand their business at global level.
 Provide quality services to the customers.
THREATS:
 Lot of competitors coming up to tap the market potential.

 Shrinkage
 High business risk involved.
 Advancement of technology day by day.
CHAPTER 6
McKinsay Seven Model Discussion
6.1 The Seven Elements
The McKinsey 7S model involves seven interdependent factors which are categorized as
either "hard" or "soft" elements:
Hard Soft Elements

Elements
Strategy Shared Values
Structure Skills
Systems Style
Staff
Fig. 13 : McKinsay Elements
"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes
and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard
elements if the organization is going to be successful.
The way the model is presented in Figure 6.2.6 below depicts the interdependency of the
elements and indicates how a change in one affects all the others.
Fig. 14 : McKinsay 7s Model
6.2 MC KINESEY’S 7 S MODEL

The 7 S Framework of Mc Kinsey is a model that describes 7 factors to organize a company
in a holistic and effective way. Together these factors determine the way in which a retail
store operates. Store Manager should take into account all seven factors, to be sure of
successful implementation of strategy. Richard Pascal and Anthony Athos first mentioned the
7-S Framework in “The Art of Japanese Management ’’ in 1981.
6.3 McKinsey’s 7s frame work with reference to organization.
STRATEGY
The business strategy of Big Bazaar Retail has been to capture the entire consumption space
of the Indian consumers. The company has moved from one retail business to another,
keeping in pace with the changing needs and aspirations of the Indian consumer. The
company which primarily started as a garment retailing company has moved into multiple
businesses on the backdrop of the endless opportunities being provided by the growing Indian
economy.
The company has adopted a strategy of catalyzing consumption and not just capturing it. The
company follows a strategy of discovering new customers, new markets, new geographies
and new business possibilities.
STRUCTURE
“Structure” is the organizational structure or the hierarchy of the organization that comprises
of the authority, responsibility and relationships in the firm. This function of framework is
concerned with direction of the delegation of authority, organizational structure whether flat
or tall and the degree of centralization or decentralization.
Fig. 15 : Organization Structure
SYSTEM
Considering this scale of expansion, technology plays a significant facilitating role. The
introduction of SAP in 2005-06 and its roll out during the year positively impacted the
business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus
improving operational efficiencies and productivity. The company has also rationalized
nearly 250 vendors through better vendor management in terms of potential to expand, and
for inclusion and up gradation to the online B2B platform.
STAFF
Big Bazaar has been successful in keeping its workforce of 25000 highly satisfied and
motivated. The company has an attrition rate of 8.12%, much below industry levels.
Big Bazaar would not have been able to expand and have the same level of success without
hiring and taking care of quality employees. Some of Pantaloon human resource activities
include employee advancement, employee recruitment on college universities, and employee
training and development. Additionally, while most firms in retail facing talent crunch. Big
Bazaar has tied up with various college and institutes to ensure it has fresh supply of talent at
its disposal. Close to 46% of the employees in the organization are women and the average
age within the organization is 27 years.
The company has a adopted a policy of collaborating on joint degree programs with 15
management schools, design institutes and institutes of higher learning in areas like food
business, supply chain management, design experience management etc. This ‘Seekho’
programme for the external and internal candidates ensures a steady stream of mid-level, well
trained retail professionals every year. The company’s ‘Gurukool’ programme provides the
front-end employees an opportunity to imbibe the company’s values and a sense of ownership
to the company.
SKILLS
Pantaloon by tying with various management institutes in India has ensured that it has
sufficient inflow of managerial skill required. In addition to that the human resource
department undertakes various training and development programs to ensure that the
employees have the necessary skills to discharge their responsibilities.
Also another area where Pantaloon scores over its competitors is its bargaining skills. It has
been able to ensure higher margins for itself from the suppliers. Also the supply chain skills
of the company are among the best in the Indian retail sector. The company carefully
rationalizes its vendors. For instance, Pantaloon buys its dry staples directly from millers for
its Food Bazaars; it is now experimenting with contract farming, too, to lower its cost
structure.
STYLE
At Pantaloon, empowerment and freedom of work is clearly apparent. This can be seen with
various category managers at each store level being empowered with taking all decisions with
respect to their departments from deciding inventory levels to placing replenishment orders.
Out of the Box thinking has become a way of life at Pantaloon and living with the change, a
habit. Such a culture in necessary to go in line with the organizational strategy of exploiting
changing consumer aspirations. In the quest of creating an Indian model of retailing,
Pantaloon has taken initiatives to launch many retail formats that have come to serve as a
benchmark in the industry. The management is very dynamic and does not focus or focus of
predicting future but rather believes in creating the future.
SHARED VALUES
The Future group as the name suggests believes in exploring areas yet unexplored. Writing
rules yet unwritten as well as creating new opportunities have been the building blocks of its
success. The group does not believe in waiting for the future to unfold itself rather it believes
in creating future scenarios. The group does not just spots trend but also creates them.
While doing all these, the following core values are shared and transpires among everyone in
the organization
 Indianness: confidence in ourselves.

 Leadership: to be a leader, both in thought and business.
 Respect & Humility: to respect every individual and be humble in our conduct.
 Introspection: leading to purposeful thinking.
 Openness: to be open and receptive to new ideas, knowledge and information.
 Valuing and Nurturing Relationships: to build long term relationships.
 Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
 Adaptability: to be flexible and adaptable, to meet challenges.
 Flow: to respect and understand the universal laws of nature.
Research Problem Study

CHAPTER 7
1) Current Ratio:
YEAR Current MEAN ( ) Std.
Ratio Deviation
2009-10 2.16
2010-11 2.10
2011-12 3.62 2.9 1.05

2012-13 3.60
2013-14 3.02
Fig. 16 (a) Current Ratio
Inference : From the above table it is inferred that the Current ratio status records the
maximum for the financial year 2011-12 and it records the least for the financial year
2010-2011.
The current ratio status revolves around the computed mean value (2.9) for the
financial years 2009-10 and 2010-11.
2) Liquid Ratio
YEAR X MEAN ( ) Std.
Deviation
2009-10 0.94556
2010-11 0.3154
2011-12 0.975 0.69 0.5209
2012-13 0.9699
2013-14 0.2685
Fig. 16 (b) Liquid Ratio
Inference : From the above table it is inferred that the Liquid Ratio status records the
2013-14.
The liquid ratio status revolves around the computed mean value ( 0.69) for the
3) Gross Profit:

Deviation
2009-10 3.49
2010-11 3.71
2011-12 2.88 3.158 0.8170
2012-13 2.28
2013-14 3.43
Fig. 16 (c) Gross Profit
Inference : From the above table it is inferred that the Gross Profit status records the
2012-2013.
The Gross Profit status revolves around the computed mean value (3.158) for the

Deviation
2009-10 0.0340
2010-11 0.0381
4) 2011-12 0.0281 0.01474 0.04324 Net
2012-13 0.0043
2013-14 0.0308
Profit:
Fig. 16 (d) Net Profit

Inference : From the above table it is inferred that the Net Profit status records the
2012-2013.
The Net Profit status revolves around the computed mean value (0.01474) for the
financial year 2011-12.
5) Proprietor Fund

Deviation
2009-10 0.018
2010-11 0.015
2011-12 0.30
0.2966 0.5429
2012-13 0.94
2013-14 0.21
Fig. 16 (e) Proprietor Fund
Inference : From the above table it is inferred that the Proprietor Fund status records
the maximum for the financial year 2012-13 and it records the least for the financial
year 2010-2011.
The Proprietor Fund status revolves around the computed mean value (0.2966) for the
6) Earnings Per Share:

Deviation
2009-10 0.71
2010-11 0.47
2011-12 0.80
2012-13 0.02 0.424 0.4902
2013-14 0.12
Fig. 16 (f) Earnings Per Share
Inference : From the above table it is inferred that the Earnings Per Share status

Deviation
2009-10 4.56
2010-11 2.27
2011-12 3.26
2012-13 12.47 5.258 5.8204
2013-14 3.73
records the maximum for the financial year 2011-12 and it records the least for the
The Earnings Per Share status revolves around the computed mean value (0.424) for the
7) Stock Velocity Ratio:
Fig. 16 (g) Stock Velocity Ratio
Inference : From the above table it is inferred that the Stock Velocity Ratio status
The Stock Velocity Ratio status revolves around the computed mean value (5.258) for
the financial year 2009-10.
8) Inventory Turnover Ratio

Deviation
2009-10 0.2141
2010-11 0.43
2011-12 0.3062
2012-13 0.0826 0.2603 0.1893
2013-14 0.2689
Fig. 16 (h) Inventory Turnover Ratio
Inference : From the above table it is inferred that the Inventory Turnover Ratio status
The Inventory Turnover Ratio status revolves around the computed mean value
(0.2603) for the financial year 2013-14.
9) Interest Coverage Ratio

Deviation
2009-10 0.74
2010-11 0.61
2011-12 0.62
2012-13 0.18 0.432 0.4491
2013-14 0.01
Fig. 16 (i) Interest Coverage Ratio
Inference : From the above table it is inferred that the Interest Coverage Ratio status
The Interest Coverage Ratio status revolves around the computed mean value (0.432)
for the financial years 2010-11 and 2011-12.
10) Degree of Operating Leverage

Deviation
2009-10 2.32
2010-11 1.60
2011-12 3.27
2012-13 1.54 1.97 1.1951
2013-14 1.12
Fig. 16 (j) Degree of Operating Leverage
Inference : From the above table it is inferred that the Degree of Operating Leverage
status records the maximum for the financial year 2011-12 and it records the least for
The Degree of Operating Leverage status revolves around the computed mean value
(1.97) for the financial year 2010-11
11) Degree of Financial Leverage

Deviation
2009-10 0.36
2010-11 1.46
2011-12 1.05
2012-13 0.96 0.856 0.6418
2013-14 0.45
Fig. 16 (k) Degree of Financial Leverage
Inference : From the above table it is inferred that the Degree of Financial Leverage
status records the maximum for the financial year 2010-11 and it records the least for
The Degree of Financial Leverage status revolves around the computed mean value
(0.856) for the financial year 2012-13.
12) Fixed Assets

Deviation
2009-10 4.32
2010-11 2.21
2011-12 3.19
2012-13 1.49 2.804 1.5049
2013-14 2.81
Fig. 16 (l) Fixed Assets
Inference : From the above table it is inferred that the Fixed Assets status records the
2012-2013.
The Fixed Assets status revolves around the computed mean value ( 2.804) for the
financial year 2013-14
CHAPTER 8
Findings
From the above table it is inferred that the Current ratio status records the maximum for the
financial year 2011-12 and it records the least for the financial year 2010-2011. From the
above table it is inferred that the Liquid Ratio status records the maximum for the financial
year 2011-12 and it records the least for the financial year 2013-14. From the above table it
is inferred that the Gross Profit status records the maximum for the financial year 10-11 and it
records the least for the financial year 2012-2013. From the above table it is inferred that the
Net Profit status records the maximum for the financial year 10-11 and it records the least for
the financial year 2012-2013. From the above table it is inferred that the Proprietor Fund
status records the maximum for the financial year 2012-13 and it records the least for the
financial year 2010-2011. From the above table it is inferred that the Earnings Per Share
From the above table it is inferred that the Stock Velocity Ratio
financial year 2010-2011. From the above table it is inferred that the Inventory Turnover
Ratio status records the maximum for the financial year 2010-11 and it records the least for
the financial year 2012-2013. From the above table it is inferred that the Interest Coverage
Ratio status records the maximum for the financial year 2011-12 and it records the least for
the financial year 2010-2011. From the above table it is inferred that the Degree of Operating
Leverage status records the maximum for the financial year 2011-12 and it records the least
for the financial year 2013-2014. From the above table it is inferred that the Degree of
Financial Leverage status records the maximum for the financial year 2010-11 and it records
the least for the financial year 2009-2010. From the above table it is inferred that the Fixed
Assets status records the maximum for the financial year 2009-10 and it records the least for
Apart from the financial findings Big Bazaar is undoubtedly number one retailer in India. It
has build very emotional & cordial relationship with its customers. They are also intending to
build long term relationship with all its stakeholders which is very essential for successful
business venture. In order to attract customer they should provide good parking facility
Cleanliness and hygienic environment is also the major concern for big bazaar. Management
needs to be focus on it. Store layout should also be developed in an efficient manner so that
customer can get things easily. According to research I found that most of the people were
affected & attracted with offers and schemes. So, Big Bazaar should employ those people
who are well trained to provide information to customer regarding new things to enhance its
customer services. Consumer choose malls to shop because they all want variety and brands.
According to customers it is economical as compared to other places. We can also say that
location, variety conveniences and economical products are not the only thing which attract
the customer but good customer service is one of the crucial factor that attract customers.
Suggestions
 Advertising is the basic and most prominent tool to increase the awareness of product.
So, Big Bazaar should use this tool to increase their share in the market.
 Retail business is successful only when they have a good customer services. Customer
loyalty can only be gain by providing good or satisfied services to the customers.
 Most respondents take on the spot decision of buying different products because of
the various attractive products displays. So pretty combination with good services
should be done to retain customers.
 Quality play a major role because most respondent said that they want a quality
product and that’s also the one of the reason for most of the respondents sticking to
particular brand.
 Should follow more of high low pricing rather than everyday low pricing .
 There should be a proper assortment of various product categories.
 Proper training should be provided to the customer so that they can deal with
customer efficiently.
 Quality in product should be reach up to mark.
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 behaviour of
customers comes in to play most of the times in big bazaar.
Big bazaar is a hypermarket store where varieties of products are being sold on different product
category. It has emerged as a hub of shopping specially for middle class people. Different types of
products starting from a baby food to pizzas all are available under one roof. In Delhi it is the middle
class people who mostly do marketing from big bazaar. Even most of the people do their monthly
shopping from big bazaar. People not only visit big bazaar to do shopping but also visit for outing
purpose as it provides a very nice ambience to its customers.
As people go to malls they just tend to move around big bazaar whether it is for shopping purpose or
for outing purpose. Grocery, apparels and food items are the products which are demanded most by
the customers of Northern part of India in big bazaar. The major drawback of big bazaar is that it
lacks in providing enough parking space for its customers. This may discourage the customers to
come to big bazaar and shop as they face difficulty in parking their vehicles. Even though some
customers say that they don’t feel problem in parking their vehicle, it is because of the parking space
available to them by the mall.
CHAPTER 9
BIBLIOGRAPHY
References:
1. The Nielsen Company, Global Online Survey Q3, 2010, “Global Private Label Report: The
Rise of the Value-Conscious Shopper,” nielsenwire, March 4, 2011,
http://blog.nielsen.com/nielsenwire/ consumer/global-private-label-report-the- rise-of-the-
value-conscious-shopper/
2. “Recession, Recovery and Store Brands: What Consumers are Saying Now,” PLMA
Consumer Research Report, Private Label Manufacturers Association, 2010
3. Scott-Thomas, Caroline, “Private label market set to double, says Rabobank,” March 28,
2011 http://www.foodnavigator- usa.com/Financial-Industry/Private-label- market-set-to-
double-says-Rabobank
4. “Experts weigh up the marketing benefits of Waitrose and Boot tie-up,” Joe Thomas,
marketingmagazine.co.uk, September 29 2009,http://www.brandrepublic.com/
news/941645/Experts-weigh-marketing- benefits-Waitrose-Boot-tie-up
5. “Store brands vs. name brands,” Consumer Reports magazine: October 2010, http://
www.consumerreports.org/cro/magazine- archive/2010/October/shopping/store- brands-vs.-
name-brands/overview/index.htm
6. “Private label gets a quality reputation, causing consumers to change their buying habits,”
Mintel International Press Release, January 2011, http://www.mintel.com/ press-centre/press-
releases/653/private- label-gets-a-quality-reputation-causing- consumers-to-change-their-
buying-habits
7. “Wal-mart Shifts Private LabelStrategy,” Store Brands Decisions, September 21, 2010,
http://www. storebrandsdecisions.com/news/2010/09/21/ Wal-Mart-shifts-private-label-
strategy-
8. http://news.starbucks.com/ article_print.cfm?article_id=23
9. “Concentrated Laundry Detergents Become Latest Trend in Green Retail Packaging,”

Sustainable Is Good, September 6, 2007, http://www.sustainableisgood.com/
blog/2007/09/concentrated-la.html
10. “Kraft to Boost Spending on Core Brands, New Products,” E.J. Schultz, Advertising Age,
February 22, 2011
Books :
1. Kishore Biyani (2007), It Happened In India (1" Edition), Rupa Publications.
2. Stephen Covey (1994), the Seven Habits of Highly Effective People (6' Edition), Simon &
Schuster UK Ltd.
3. Anthony Robbins (1992), Awaken the Giant within You (1 " Edition), Simon & Schuster
UK Ltd.
4. Robbins, Stephen P. (2004), Organizational Behaviour (10th Edition),
Web Sites :
www.pantaloonretail.com
www.futuregroup.in
www.futurebazaar.com
www.futurebrand.co.in
www.fch.in
www.futuregenerali.in
www.fldl.in
www.futuresupplychains.com
www.futuremedia.in
-x-

Study On The Financial Performance of Big Bazaar Finance

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Study On The Financial Performance of Big Bazaar Finance

Uploaded by

Copyright:

Available Formats

A Study On The Financial Performance Of Big Bazaar

BIG BAZAAR MALLESWARAM BANGALORE

Submitted in Partial Fulfilment of the Requirements of

Under the Guidance of

Prof. VENKATRAMAN SUBRAMANIAN

Date : BIPROJIT DEY

Certified that this organization Study Report titled “A STUDY ON THE

Prof. Venkatraman Subramanian Dr. Kerron G Reddy

Professor MBA department CEO and Principal

Place: Bangalore Place: Bangalore

CHAPTER 1 1.3 Company profile 21

CHAPTER 2 Organization Structure 36

3.1 Human Resource Dpmt 40

3.2 Customer Service Desk 40

CHAPTER 3 3.4 Logistics 42

3.5 Marketing Department 43

3.6 Sales Department 43

CHATPER 4 Ethical / Best Policies / Policies in the 45

CHAPTER 5 SWOT Analysis 48

CHAPTER 6 McKinsay 7 Model Discussion 51

CHAPTER 7 Research Problem Study 57

CHAPTER 8 Findings, Suggestions & Conclusion 70

CHAPTER 9 Bibliography & Annexure 74

SERIAL NO. FIGURES/ CHARTS NAME

SERIAL NO. TABLE NAME

Connecting the Youth

Helping India Save Building Dreams in a

FIG. 1: Various Retail Formats

BRANDS KNOWLEDGE SERVICES RETAIL

CONSUMER FINANCE INSURANCE

Founder(s) Mr. Kishore Biyani (MD & CEO)

Headquarters Mumbai, Maharashtra, India

Products Discount, grocery and convenience stores, cash and

Divisions Pantaloon Retail, Future Value Retail Limited

Tab. 2 : Founder Board

Group CEO, Future Group

Director, Future Group

Director, Future Group

Director, Future Group

Fig. 2 : Future Group

1.2 INDUSTRY PROFILE

The contracting global economy, advances in technology, a proliferationin the number of

1.2.1 HISTORIES AND EVOLUTION OF RETAIL INDUSTRY:

1.2.2 RETAIL IN INDIA: HISTORICAL PERSPECTIVE

The present paper is an attempt to explore retailing in India in Historical perspective.

1.2.3 EVOLUTION OF RETAIL IN INDIA:

1.2.4 TRADITIONAL RETAIL FORMAT IN INDIA:

1.2.5 EMERGENCE OF ORGANISED RETAIL IN INDIA:

Fig. 4 : Formats of Retailing

1. ITINERANT SALESMAN : It is a type of direct selling, which stated centuries

3. SUPER MARKETS/HYPER MARKETS : These are large (90,000 square feet

5. SPECIALTY CHAINS : These outlets focus on a particular brand as product

6. DISCOUNT STORE : It is a general merchandise retailer that offers a wide variety of

C) CO-OPERATIVE SHOPS/GOVT. ORGANISATION :

A consumer cooperative is a retail institution owned by member customers. A consumer

D) MOTHER DAIRY, DELHI & FRUIT & VEGETABLE PROJECT,

E) PDS/FAIR PRICE SHOP :

1.2.7 RURAL MALLS HAVE MADE A BEGINNING:

In commerce, a hypermarket is a superstore combining a supermarket and a department store.

Headquarters Mumbai, Maharashtra, India

Employees 36000 people

Parent Future Group