http://toostep.

com/insight/7-p-s-in-retail

1. Product

-Providing value for money by adding value to the product or service being offered.

-Providing multiple payment options to the customer by spreading the price of the
product into multiple installments.

-To look at the product offering from the customers point of view.

-To develop an area of superiority in the product offering by adding some extra value
to it.

-To keep analysing if the market for the product offering is increasing or decreasing
and developing strategies for the growth of the product.

2.Price

-A product is only worth what a customer is prepared to pay for it.

-The price needs to be competitive, but not necessarily the cheapest.

-Be open to the possibility that the current pricing structure may not be ideal for the
current market.

-Be open to the need to revise your prices, if necessary, to remain competitive, to
survive and thrive in a fast-changing marketplace.

-If you think the price you sell at , as a cost to the customer, it will help you keep
things in the right perspective.

3. Place

-This can be Direct selling, mail order, telemarketing or in retail stores.

-This is where the customers can buy the product, and is the means to get the
product to the customer

-The product must be available at the right place (Product category), at the right time
(time you sell your product), and in the right quantity (enough stock).

-The place in which your business operates can be the deciding factor in the success
or failure of the business.

-To provide facilities like free parking to ensure the ease of accessing the store.
-Once you have a good location, it becomes difficult to replicate the same and it
become your competitive strength.

4.Promotion

-This is the way in which you communicate to your potential customers about your
product.

-This can be done in a number of ways, which includes your brand image,
advertising, special offers.

-Small changes in the way the products are promoted and sold can lead to dramatic
changes in results.

-Experiment with different ways of advertising, promoting, and selling the products
and services.

-A sales or marketing method might stop working after sometime and it become
essential to continually look for new improved ways to promote and market the
product in front of the customer.

-To develop new sales, marketing and advertising approaches, offerings, and
strategies.

5. Physical Evidence

-This is the intangible part of the business mostly concerned with services as they
cannot be seen.

-Intangible is often used to describe services as they cannot be touched like a

product can be.

-This important because, fundamentally you are selling a product, but in order for
you to be able to price your goods at the right the level, you will also be selling the
service the buyer will receive.

6. People

-The reputation of the brand rests in the people’s hands. You must therefore ensure
that all your people are appropriately trained, well motivated and have the right
attitude.

-People does not only include the people in your business , but also the people that
you use for your business.

-The ability to select, recruit, hire and retain the proper people, with the skills and
abilities to do the job you need to have done, is more important than everything else
put together.
-Many customers are unable to separate the products they buy from the person who
sells it to them. This goes to show the importance of your people in relation to
customer’s perception.

-The level of after sales support and advice provided by the retailer is one way of
adding value to what is sold , and will give a competitive advantage over others
sellers of similar product. Many of the best business plans ever developed do not
see the light of the day as the people who created them could not find the key people
who could execute those plans

7. Process

-The process that you go through and the behavior of those who deliver the products
are crucial to customer satisfaction.

-Issues such as waiting times , the information passed onto customers are vital
factors when trying to maintain 100% satisfaction.

-Processes must help the customers get what they want.

-E.g. What payment methods are in place that makes it easier or quicker for parents
to pay for your service?

-Always keep customers informed. This can be done at the store or through faxes
and emails.

-By keeping in contact with the customers the retailer can avoid problems of negative
feedback etc.

-This also does the world of good for your brand image.

-Customers will view this as an extra value added service.

http://www.scribd.com/doc/26510647/A-REPORT-ON-BIG-BAZAAR-PANTALOON-
RETAIL-INDIA-LTD
Marketing Mix Big Bazaar
http://www.marketing91.com/marketing-mix-big-bazaar/

Big Bazaar offers a wide range of products which range from apparels, food, farm products, furniture, child care, toys, etc of
various brands like Levis, Allen Solly, Pepsi, Coca- Cola, HUL, ITC, P&G, LG, Samsung, Nokia, HP etc.

Big Bazaar also promotes a number of in house brands like:

• DJ & C
• Tasty Treat

• Clean Mat Sensei

• Care Mate
• Koryo and 44 other brands

• Koryo and 44 other brands.

Pricing:

The pricing objective at Big Bazaar is to get “Maximum Market Share”. Pricing at Big Bazaar is based on the following
techniques:

• Value Pricing (EDLP – Every Day Low pricing): Big Bazaar promises consumers the lowest available
price without coupon clipping, waiting for discount promotions, or comparison shopping.
• Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of psychological
discounting (Rs. 99, Rs. 49, etc.) is also used to attract customers. Big Bazaar also caters on Special
Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja).
• Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-peak hours
or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big
Bazaar.

e.g. Wednesday Bazaar

• Bundling: It refers to selling combo-packs and offering discount to customers. The combo-packs add
value to customer and lead to increased sales. Big Bazaar lays a lot of importance on bundling.

e.g. 3 Good Day family packs at Rs 60(Price of 1 pack = Rs 22)

5kg oil + 5kg rice + 5kg sugar for Rs 599

Place:

The Big Bazaar stores are operational across three formats — hypermarkets spread over 40,000-45,000 sq ft, the Express
format over 15,000-20,000 sq ft and the Super Centers set up over 1 lakh sq ft. Currently Big Bazaar operates in over 34
cities and towns across India with 116 stores. Apart from the Metros these stores are also doing well in the tier II cities.
These stores are normally located in high traffic areas. Big Bazaar aims at starting stores in developing areas to take an early
advantage before the real estate value booms. Mr. Biyani is planning to invest around Rs 350 crore over the next one year
expansion of Big Bazaar. In order to gain a competitive advantage Big Bazaar has also launched a website
www.futurebazaar.com, which helps customers to orders products online which will be delivered to their doorstep. This
helps in saving a lot of time of its customers.

Promotion:

The various promotion schemes used at Big Bazaar include:

• “Saal ke sabse saste 3 din”

• Hafte ka sabse sasta din “Wednesday bazaar”
• Exchange Offers “Junk swap offer”
• Future card(3% discount)
• Shakti card
• Advertisement (print ad, TV ad, radio)
• Brand endorsement by M.S Dhoni and Asin

Big Bazaar has come up with 3 catchy lines written on hoardings taking on biggies like Westside, Shoppers stop and
Lifestyle. They are:

• “Keep West- aSide. Make a smart choice!”

• “Shoppers! Stop. Make a smart choice!”
• “Change your Lifestyle. Make a smart choice!”

People:

• Well trained staff at stores to help people with their purchases

• Employ close to 10,000 people and employ around 500 more per month.
• Well-dressed staff improves the overall appearance of store.
• Use scenario planning as a tool for quick decision making multiple counters for payment, staff at store to
keep baggage and security guards at every gate, makes for a customer-friendly atmosphere.

Process:

Big Bazaar places a lot of importance on the process right from the purchase to the delivery of goods. When customers enter
the stores they can add the products they which to purchase in their trolley from the racks. There are multiple counters where
bill can be generated for purchases made. Big Bazaar also provides delivery of products over purchases of Rs. 1000.

Physical Evidence:

Products in Big Bazaar are properly stacked in appropriate racks. There are different departments in the store which display
similar kind of products. Throughout the store there are boards/written displays put up which help in identifying the location
of a product. Moreover boards are put up above the products which give information about the products, its price and offers.
Big Bazaar stores are normally ‘U shaped’ and well planned & designed
Service Marketing Triangle

External Marketing

1.Print Ads – Sabse saste 5 din

2.Tv ads – with tag line “Is se sasta aur accha kahi nahi”

3.Wednesday Bazaar

Wednesday is the cheapest day. This is done to divert some of the crowd coming on
weekends to a relatively free day. Big bazaar advertises Wednesdays as the cheapest day in
all the leading dailies across the capital. This offer targets housewives and encourages
them to purchase groceries and vegetables because no one purchases vegetables on a weekly
basis, they purchase it at least two times a week.

4. Big Bazaar promote” unique exchange offer”

Big Bazaar promote unique exchange offer `Bring anything old and take anything new’.
Under the exchange offer, old garments, utensils, furniture, plastic ware, newspapers or just
about anything will be weighed and valued and customers will be given exchange coupons.
There is also a direct exchange on mobile and electronic goods during the period with
attractive discounts on new purchases.

Generally February and March are dull months for consumer buying in the country and
therefore this kind of a promotion campaign is needed to boost sales during the period.

5.Big bazaar in association with ICICI banks has launched loyalty cards for the customers.
They are:

o ICICI Bank Big Bazaar Silver Credit Card It gives you the benefits of
regular cards and additional features to make your shopping not only
enjoyable but also a way to save more with Big Bazaar.
o ICICI Bank Big Bazaar Gold Credit CardThe card brings to you more
reasons to save and earn rewards on its usage. It gives you all the benefits of
regular cards and additional features to make your shopping not only
enjoyable but also a way to save more with Big Bazaar.
o Shakti Card
o Shakti is a credit card for housewives. You need not submit income proof.
Simply show your Big Bazaar bill of more than Rs. 500 and a lifestyle proof
like club membership card, health club card etc. And get your ‘Shakti’. You
can use Shakti at all the Big Bazaar and Food Bazaar outlets
Interactive Marketing

Welcoming the customer

Providing trolleys to customer

Reminding customers about the scheme and discounts

Internal announcement

Interaction at checkouts

Interactive Marketing

Training on

1.Communication and negotiation with customers

2. Product knowledge

3. Standard operating procedure

4. Stress management
 5. Time management

6. SAP training

7 Leafe program – program for regnoising store manager who can be

promoted to area manager

8. Kartavisibility – Program for store manager on how to manage the

store

9. Chote Bhim – Training for HR people in store.

retail policy in india

http://indiacurrentaffairs.org/government-of-india-policy-on-fdi-in-retail-trade/

Government Of India Policy On FDI In Retail Trade

Foreign Direct Investment (FDI) is not permitted in retail trade except in single Brand product retailing where Foreign
Investment upto 51% is permitted with prior Government approval and subject to the following conditions:

(i) Products to be sold should be of ‘Single Brand’ only

(ii) Products should be sold under the same brand internationally and

(iii) ‘Single brand product-retailing would cover only products which are branded during manufacturing.

The Government had instituted a study on the subject impact of Organized Retailing on the unorganized sector through
the Indian Council for Research on International Economic Relations (ICRIER). Based on a sample survey ICRIER has
reported that the rate of closure of unorganized retail shops in gross terms was found to be about 4.2 percent while the
rate of closure on account of competition from organized retail was 1.7 percent per annum. The report has stated that a
majority of unorganized retailers are keen to continue in business and compete. There has also been competitive
response from traditional retailers through improved business practices and technology up gradation. There was no
evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers.
There was some decline in employment in the North and West regions, which however, also weakens over time. The
report also mentioned that unorganized retailers in the vicinity of organized retailers experienced a decline in their
volume of business and profit in the initial years after the entry of large organized retailers. However the adverse impact
on the sales and profit weakens over time.

This information was given by Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food and Public
Distribution in written reply to a question in the Rajya Sabha

http://www.ibef.org/industry/retail.aspx
Retail
Last Updated: December 2010

The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will grow from US$ 392.63 billion in 2011 to US$ 674.37
billion by 2014. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of
organised retail infrastructure are key factors behind the forecast growth. With the expanding middle and upper class consumer base, there will
also be opportunities in India's tier II and III cities.

Mass grocery retail (MGR) sales in India are expected to undergo enormous growth over the forecast period. BMI predicts that sales through
MGR outlets will increase by 145 per cent to reach US$ 21.35 billion by 2014.

BMI forecasts consumer electronic sales at US$ 29.09 billion in 2011, with over-the-counter (OTC) pharmaceutical sales at US$ 2.69 billion. The
former sub-sector is expected to show growth of 55.6 per cent between 2011 and 2014, reaching US$ 45.27 billion, with projected double-digit
growth of key products such as notebooks, mobile handsets and TVs. OTC pharmaceuticals, meanwhile, should increase slightly more, by 56.5
per cent throughout the forecast period, to reach US$ 4.21 billion.

China and India are predicted to account for more than 91 per cent of regional retail sales in 2011, and by 2014 their share of the regional market
is expected to be more than 92 per cent. Growth in regional retail sales for 2011-2014 is forecast by BMI at 48.1 per cent, an annual average 15
per cent.

According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India', organised retail in India is
expected to increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450 billion by 2015.

Furthermore, according to a report titled 'India Organised Retail Market 2010', published by Knight Frank India in May 2010 during 2010-12,
around 55 million square feet (sq ft) of retail space will be ready in Mumbai, national capital region (NCR), Bengaluru, Kolkata, Chennai,
Hyderabad and Pune. Besides, between 2010 and 2012, the organised retail real estate stock will grow from the existing 41 million sq ft to 95
million sq ft.

Driven by the growth of organised retail coupled with changing consumer habits, food retail sector in India is set to be more than double to US$
150 billion by 2025, according to a report by KPMG.

India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales through organised retail, meaning that the opportunity
in India remains immense. Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with 10 per cent coming from organised retail,
reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands, according to the report ‘Expanding
Opportunities for Global Retailers’, released by A T Kearney.

India has been ranked as the third most attractive nation for retail investment among 30 emerging markets by the US-based global management
consulting firm, A T Kearney in its 9th annual Global Retail Development Index (GRDI) 2010.

Foreign direct investment (FDI) inflows between April 2000 and October 2010, in single-brand retail trading, stood at US$ 197.04 million,
according to the Department of Industrial Policy and Promotion (DIPP).

• Carrefour, the world’s second-largest retailer, has opened its first cash-and-carry store in India in New Delhi. Germany-based
wholesale company Metro Cash & Carry (MCC) opened its second wholesale centre at Uppal in Hyderabad, taking to its number to
six in the country.
• Electronic retail chain major, Next Retail India, plans to open 400 showrooms across the country during January-March 2011
increasing the total number of retail stores to 1,000 by the end of the fiscal year 2010-11.
• Jewellery retail store chain Tanishq plans to open 15 new retail stores in various parts of the country in the 2011-12 fiscal.
• V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to open 40 outlets over the next three years, starting with 13
 stores in 2011, in Tier-II and Tier-III cities.
• Reliance Retail, the wholly owned subsidiary of Mukesh Ambani's Reliance Industries, is set to open 150 stores by the end of March
2011 and double the number of stores across the country in all formats within five years.
• Future Value Retail, a Future Group venture, will take its hypermarket chain Big Bazaar to smaller cities of Andhra Pradesh, with an
investment of around US$ 1.54 million to US$ 4.41 million depending on the size and format.
• RPG-owned Spencer's Retail plans to set up 15-20 new stores in the country in 2011-12.
• Spar Hypermarkets, the global food retailing chain of the Dubai-based Landmark Group, expects to start funding its India expansion
beyond 2013 out of its local cash flow in the country. So far, the Landmark Group has invested US$ 51.31 million in setting up five
hypermarkets and plans to pump in another US$ 51.31 million into the next phase of expansion.
• Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 million for opening 50 premium watch outlets Helios in
next five years to attain a sales target of US$ 87.31 million.
• British high street retailer, Marks and Spencer (M&S) plans to significantly increase its retail presence in India, targetting 50 stores in
the next three years.
• Spain's Inditex, Europe's largest clothing retailer opened the first store of its flagship Zara brand in India in June 2010. It further plans
to open a total of five Zara outlets in India.
• Bharti Retail, owner of Easy Day store—supermarkets and hypermarts—plans to invest about US$ 2.5 billion over the next five years
to add about 10 million sq ft of retail space in the country by then, according to a company spokesperson.

Policy Initiatives

100 per cent FDI is permitted under the automatic route for trading companies for cash & carry trading wholesale trading/ wholesale trading.

FDI up to 51 per cent under the Government route is allowed in retail trade of Single Brand products, according to the Consolidated FDI Policy
document.

The Consumer Affairs Ministry has given the green signal to allow 49 per cent FDI in multi-brand retail. It has written a letter to this effect to the
Commerce Ministry. "Multi-brand retail should be permitted with a cap of 49 per cent… A significant chunk of investments should be spent on
back-end infrastructure, besides logistics and agro-processing," the Consumer Affairs Ministry had said in response to the discussion paper
floated by the Department of Industrial Policy and Promotion in June 2010 on allowing 100 per cent FDI in multi-brand retail.

The Securities and Exchange Board of India (SEBI) has notified the increase in the retail investment limit to US$ 4,391.19 in initial public offers
(IPOs). The new norms will be applicable to issues that have yet not opened for subscription.

Road Ahead

According to industry experts, the next phase of growth is expected to come from rural markets.

According to a market research report published in June 2008 by RNCOS titled, 'Booming Retail Sector in India', organised retail market in India
is expected to reach US$ 50 billion by 2011. The key findings of the report are:

• Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent from 2007 to 2015
• Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50 per cent
• Driven by the expanding retail market, the third party logistics market is forecasted to reach US$ 20 billion by 2011
• Apparel, along with food and grocery, will lead organised retailing in India

Further, the luxury brand in the country is estimated to be worth about US$ 4.06 billion-US$ 4.51 billion and is expanding rapidly driven by the
growing aspirations of youth and income levels in the country. Most people constantly scale up spends as aspirations grow.

Thus, major international brands are in the process of expanding their retail presence. For instance, Paul & Shark now has two stores with
Hyderabad and will have few more by next year, Zegna, another Italian brand, known for its formal wear and quality suits, is also expanding and
Diesel will have seven stores in the country.

Meanwhile, European football clubs, including Manchester United, Chelsea and Liverpool, are increasingly scouting for partnerships in India to
sell their merchandise and also set up chain of coffee clubs and theme shops.

The stationery retailing market in India is also witnessing steady growth due to the arrival of organised players in the business. It is estimated that
the Indian office products industry is in the range of US$ 2.22 billion with stationery comprising US$ 666.89 million-US$ 889.19 million and
growing at 30 per cent per annum.

Future Group and Reliance Retail are some of the players who are already tapping into the sector and have launched brands such as Staples and
Office Depot.
Exchange rate used:
1 USD = 45.36 INR (as of Dec 2010)
1 USD = 44.98 INR (as of Nov 2010)

http://www.indiainfoline.com/TV/ETNow-
Videos/ET-Insight-Retailers/641501399
McKinsey & Company report titled 'The
Great Indian Bazaar: Organised Retail
Comes of Age in India'
Promotional Offers Run by Big Bazaar

http://retailjunction.goelji.com/retail-promotions/promotional-offers-run-by-big-
bazaar.html

Big bazaar believes in advertising its brand and offers. We often encounter big bazaar’s
advertisement in the newspapers. Big Bazaar wazirpur is no different the various
promotional schemes are decided by the main office and all the outlets run these schemes,
they understand the importance of communication. The Future Group has created a category
for the growing media industry called Future Media, which is to be a medium through which
advertisers can communicate with shoppers in the store. On the effectiveness of this method
of reaching the customer, Partho Dasgupta, Chief Executive Officer, Future Media, says
“You are communicating to the consumer when and where it matters — at the time of making
a purchase decision.” The company is considering all types of ways to reach the customer,
including digital signage, audio, video and blue-tooth technology etc. The Future Group has
switched its media agency and has selected Starcom to handle its account which is around Rs.
2-2.5 billion and is said to be one of the largest accounts in the past five years. The company
was earlier with Carat for the past two years. As Pantaloon expands across all formats and is
rapidly increasing its sq ft space from 4 million sq ft to 30 million sq ft, the company is also
looking for creative agencies. At present the company uses Mudra for its value retail segment
and Percept for its lifestyle retail segment. The various promotional schemes undertaken by
big bazaar are as follows:

• The punch line of Big Bazaar says “IS SE SASTA AUR ACCHA KAHI NAHI”. This
line gives the feeling that Big Bazaar gives merchandise which is cheapest in the
market or in other words the value for money which a customer will be getting here
will be more than anywhere else.
• Wednesday is the cheapest day. This is done to divert some of the crowd coming on
weekends to a relatively free day. Big bazaar advertises Wednesdays as the cheapest
day in all the leading dailies across the capital. This offer targets housewives and
encourages them to purchase groceries and vegetables because no one purchases
vegetables on a weekly basis, they purchase it at least two times a week.
• Big Bazaar has announced a unique exchange offer `Bring anything old and take
anything new’. Under the exchange offer, old garments, utensils, furniture, plastic
ware, newspapers or just about anything will be weighed and valued and customers
will be given exchange coupons. There is also a direct exchange on mobile and
electronic goods during the period with attractive discounts on new purchases.
• Big Bazaar’s `The Great Exchange Offer’ has mobilized more than two lakh families
to actually carry the junk of the house and offload it at the nearest Big Bazaar. Retail
analysts say that generally February and March are dull months for consumer buying
in the country and therefore this kind of a promotion campaign is needed to boost
sales during the period.
• PANTALOON group’s hypermarket chain, Big Bazaar, celebrated Republic Day as
the Maha Savings Day, when shoppers at Big Bazaar and Food Bazaar outlets
across the country, were offered merchandise at rock bottom prices.
• The Maha Savings Day saw shoppers got deals they have never seen or heard before.
The offers spread across categories from electronics to utensils, from apparel to
furniture and also food. For example pressure cooker for Rs 299, two Ruf n Tuf Jeans
for Rs 499, and a Motorola C115 for Rs 1,399.
• Big Bazaar usually runs a full page advertisement on Saturdays and Sundays in all the
leading dailies communicating various offers. This is done to attract crowds on
weekends because most of the people usually shop during weekends.
• Pantaloons retail India limited provides Green card, this Green Card is passport to a
whole new world of exclusive benefits and privileges. These includes:
o Instant discounts for every time you shop at Pantaloons.
o Exclusive shopping days to get hold of latest merchandise.
o Regular updates on collections and promos via catalogues, sms and email.
o Special invites to the most happening events.
o Extended exchange periods and complimentary drops for alterations.
o Exclusive billing counters and much more.
o Big bazaar in association with ICICI banks has launched loyalty cards for the
customers. They are:
o ICICI Bank Big Bazaar Silver Credit Card It gives you the benefits of
regular cards and additional features to make your shopping not only
enjoyable but also a way to save more with Big Bazaar.
o ICICI Bank Big Bazaar Gold Credit CardThe card brings to you more
reasons to save and earn rewards on its usage. It gives you all the benefits of
regular cards and additional features to make your shopping not only
enjoyable but also a way to save more with Big Bazaar.
o Shakti Card
o Shakti is a credit card for housewives. You need not submit income proof.
Simply show your Big Bazaar bill of more than Rs. 500 and a lifestyle proof
like club membership card, health club card etc. And get your ‘Shakti’. You
can use Shakti at all the Big Bazaar and Food Bazaar outlets