1

A
Project report on

CONSUMER BEHAVIOUR TOWARDS UTENSILS PURCHASE IN

BIG BAZAAR – AMEERPET, Hyderabad.

Submitted to Jawaharlal Nehru Technological University, Hyderabad in partial fulfillment

of requirement of the award of degree in Master of Business Administration.

by
R. PAVAN KUMAR REDDY
(08D91E0038)

Under the guidance of

Mr. S.V.V.S.N. MURTHY MBA,(M.Phil)

DEPARTMENT OF MANAGEMENT STUDIES

AURORA’S SCIENTIFIC, TECHNOLOGICAL AND RESEARCH ACADEMY
Bandlaguda, Hyderabad-05
2008-2010
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DECLARATION

I here by declare that this project report titled CONSUMER BEHAVIOUR

TOWARDS UTENSILS PURCHASE Submitted by me to the department of

Management Studies, AURORA’S SCIENTIFIC, TECHNOLOGICAL AND RESEARCH
ACADEMY, is a bonafide work undertaken by me and it is not Submitted to any other
university or institution for the award to any Degree/diploma/certificate or published any
time before.

R. PAVAN KUMAR REDDY

08D91E0038
Place :
Date :
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ACKNOWLEDGEMENT

Working with company is an excellent tool for learning and exploration. Application
of theoretical knowledge to practical situations is the bonanzas of this Internship.
I avail this opportunity to express my deep sense of gratitude to all
the people who have helped me to carry out and complete this project in
partial fulfillment of my MBA degree curriculum.
It has been of inestimable pleasure and privilege to express my heart full
gratitude , admiration and sincere thanks to Mr. P. TARUN SAHA, Sales and
Merchandise Manager of BIG BAZAAR Ameerpet, for rendering his help as a guide to
carry out my project in this esteemed organization.
I wish to express my heart full thanks to Mr. K. Ajay Kumar Head of the
department of MBA , AURORA’S SCIENTIFIC, TECHNOLOGICAL AND RESEARCH
ACADEMY, Mr. S.V.V.S.N. Murthy lecturer for giving me valuable suggestions and
priceless guidance without which, my project would have been incomplete.
It is my pleasure to thank all my friends who supported me in the course of my
project. They helped me in collecting the data and they supported me for the ideas.

Thanking you
R. PAVAN KUMAR REDDY
H.No: 08D91E0038
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TABLE OF CONTENTS

CHAPTER- 1
INTRODUCTION
1.1. Introduction …..06
1.2. Need for study …..07
1.3. Objectives of study …..08
1.4. Scope of the study …..09
1.5. Limitations of study …..10
1.6. Methodology of study …..11
CHAPTER- 2

THEORITICAL BACKGROUND …..13

CHAPTER- 3
THE COMPANY
1.1 Industrial profile …..28

1.2 Company profile …..33

CHAPTER- 4
DATA ANALYISIS & INTERPRITATION …..46

CHAPTER- 5
SUMMARY & CONCLUSIONS
1.1 Findings …..65
1.2 Suggestions …..66
1.3 Conclusions …..67

BIBLIOGRAPHY …..69

ANNEXURES
QUESTIONNAIRE ...71
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CHAPTER- 1
INTRODUCTION

1.INTRODUCTION
.
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RETAIL INDUSTRY:

In the Indian retailing industry, food is the most dominating sector and is growing at
a rate of 9% annually. 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. 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 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
2010, India may have 600 new shopping centers.

The Indian retail market, which is the fifth largest retail destination globally,
according to industry estimates is estimated to grow from the US$ 330 billion in 2007 to
US$ 427 billion by 2010 and US$ 637 billion by 2015. Simultaneously, modern retail is
likely to increase its share in the total retail market to 22 per cent by 2010.

Continuing the robust growth of the organized retail in India, according to the Credit
Rating and Information Services of India, the industry raked in US$ 25.44 billion turnover
in 2007-08 as against US$ 16.99 billion in 2006-07, a whopping growth rate of 49.73 per
cent.

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 favorable
demographic patterns.

"The story is not about us, but this story is about the people who visit our stores. This is a
proud moment for India."

One of the biggest retail here in India we know is Kishore Biyani’s big bazaar. The
company ended 2007-08 with Rs5048crore in revenue. Biyani's and Big Bazaar's, march
comes at a time when several new retailers are slowing expansion, reducing the number of
outlets, effecting layoffs, even exiting the business.

By 2011, he claims, there will be 300 Big Bazaars, and Pantaloon Retail (India) Ltd,
his flagship, will have revenue of Rs13000crore.

Thus here we will know about the company profile, operations and also about the
consumer behavior towards the schemes, discount, etc which are offered by the store to
facilitate customers.

2. NEED FOR THE STUDY

In Indian retail sector, the organized sector is just only 10% and the remaining 90%
is unorganized sector. It is expected a huge growth in organized sector in coming years. So
the study of consumer behavior in that sector will be challenging. It helps me to find what
exact features customers prefer while purchasing. So a study on consumer behavior
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towards Utensil purchase in a particular retail outlet called Big Bazaar, Hyderabad was
found necessary.

3. OBJECTIVES

 To analyze the behaviour of customers of Big Bazaar-Ameerpet..

 To know the motivating factors of consumers in purchasing utensils of Big

Bazaar-Ameerpet.
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 To know how brand preference is formed in purchasing utensils in Big Bazaar-

Ameerpet among consumers.

 To analyze Marketing Strategies of Big Bazaar-Ameerpet.

 To ascertain the level of brand loyalty and brand image associated by consumer
with a brand name ‘Dream line’ and the reason for this.

 To measure the level of satisfaction of customers of Big Bazaar-Ameerpet..

 To study the consumer perception towards utensils in Big Bazaar-Ameerpet.

4. SCOPE OF THE STUDY

This study is to understand the behaviour of the customers towards utensils, apart
from helping to acquire a better insight and understanding into the vital, but trivial aspects
of the utensils market, it also helps in assessing the companies strengths and weaknesses
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against the competing utensils brands. Thus helping in finding the loop holes in the
company’s products in finding logical solutions to the problems.

This study helps in finding out:

 How the customers rate the various attributes in utensils as against other
competitors.

 How effective the company is in positioning utensils as a reputed retail store in

Hyderabad.

 How effective the company’s marketing strategies are attracting the customers by
offering a lot of offers.

5. Limitations of study

• The sample is very small basing on which the result does not depend.
• The study is about the customers of big bazaar only.
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• The response depends upon the mood and time availability of time for the
customers.
• Resistance to respond from some of the customers.
• The time duration to study the consumer behaviour was not sufficient.

6. METHODOLOGY FOR DATA COLLECTION

1. Source of data:

There are broadly two types of data available to a researcher. They are;
(a) Primary data
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(b) Secondary data

Primary data:

It refers to the first hand information collected by the researcher, specific to the
research problem. It includes using different primary data collection tools such as personal
interview using questionnaires, telephone surveys, mail surveys etc. For the present study,
primary data was collected by survey method using questionnaires.

Secondary data:

It is the information that already exists for another purpose. This refers to all those data
which are collected for some earlier research work. The secondary data for this work was
obtained form company profile, company magazines, website, newspapers, internet, text
books, reports and form company brochures and other promotional materials.

2. Sampling:

In the consumer market research, there is a problem of selecting a sample of few

hundred respondents from a vast population. The reason for sampling is that it is not
possible to cover the entire population in the field of research.

SAMPLING DESIGN

Type of sample : Simple random

Sampling : For this study the respondents were customers of Big

Bazaar-Ameerpet.

Research instruments: Structured closed ended questionnaire.

Method : The respondents were contacted personally and

interviewed.

Sampling Size

The sample size is 100. Out of the 100 respondents, females were 90 and males
were 10 respondents.
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CHAPTER-2

THEORITICAL BACKGROUND

2. CONSUMER BEHAVIOUR

Consumer behaviour is the study of how people buy, what they buy, when they buy
and why they buy. It blends elements from psychology, sociology, socio-psychology,
anthropology and economics. It attempts to understand the buyer decision processes/buyer
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decision making process, both individually and in groups. It studies characteristics of

individual consumers such as demographics, psychographics, and behavioural variables in
an attempt to understand people's wants. It also tries to assess influences on the consumer
from groups such as family, friends, reference groups, and society in general.
Belch and Belch define consumer behaviour as 'the process and activities people engage in
when searching for, selecting, purchasing, using, evaluating, and disposing of products and
services so as to satisfy their needs and desires'.

Buyer- an enigma

Although it is important for the firm to understand the buyer and accordingly evolve
it marketing strategy, the buyer or consumer continues to be an enigma – sometimes
responding the way the marketer wants and on other occasions just refusing to buy the
product from the same marketer. For this reason, ht buyers’ mind has been termed as a
black box, the marketer provides stimuli but he is uncertain of the buyer’s response. This
stimulus is a combination of product, brand name, colour, style, packaging, intangible
services, merchandizing, shelf display, advertising, distribution, publicity and so forth.

Further today’s customer is being greatly influenced by the media especially

electronic. Technological developments in the field of information, biotechnology and
genetics, and intensive competitions in all products and services are also impacting
consumer choices.

Consumer behaviour involves the psychological processes that consumers go

through in recognizing needs, finding ways to solve these needs, making purchase decisions
(e.g., whether or not to purchase a product and, if so, which brand and where), interpret
information, make plans, and implement these plans (e.g., by engaging in comparison
shopping or actually purchasing a product).

Sources of influence on the consumer. The consumer faces numerous sources of

influence.

Often, we take cultural influences for granted, but they are significant. An
American will usually not bargain with a store owner. This, however, is a common practice
in much of the World. Physical factors also influence our behavior. We are more likely to
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buy a soft drink when we are thirsty, for example, and food manufacturers have found that it
is more effective to advertise their products on the radio in the late afternoon when people
are getting hungry. A person’s self-image will also tend to influence what he or she will
buy—an upwardly mobile manager may buy a flashy car to project an image of success.
Social factors also influence what the consumers buy—often, consumers seek to imitate
others whom they admire, and may buy the same brands. The social environment can
include both the mainstream culture (e.g., Americans are more likely to have corn flakes or
ham and eggs for breakfast than to have rice, which is preferred in many Asian countries)
and a subculture (e.g., rap music often appeals to a segment within the population that seeks
to distinguish itself from the mainstream population). Thus, sneaker manufacturers are
eager to have their products worn by admired athletes. Finally, consumer behavior is
influenced by learning—you try a hamburger and learn that it satisfies your hunger and
tastes good, and the next time you are hungry, you may consider another hamburger.

Consumer Choice and Decision Making: Problem Recognition. One model of consumer
decision making involves several steps. The first one is problem recognition—you realize
that something is not as it should be. Perhaps, for example, your car is getting more
difficult to start and is not accelerating well. The second step is information search—what
are some alternative ways of solving the problem? You might buy a new car, buy a used
car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The
third step involves evaluation of alternatives. A skateboard is inexpensive, but may be ill-
suited for long distances and for rainy days. Finally, we have the purchase stage, and
sometimes a post-purchase stage (e.g., you return a product to the store because you did not
find it satisfactory). In reality, people may go back and forth between the stages. For
example, a person may resume alternative identification during while evaluating already
known alternatives.

Consumer involvement will tend to vary dramatically depending on the type of

product. In general, consumer involvement will be higher for products that are very
expensive (e.g., a home, a car) or are highly significant in the consumer’s life in some other
way (e.g., a word processing program or acne medication).

It is important to consider the consumer’s motivation for buying products. To

achieve this goal, we can use the Means-End chain, wherein we consider a logical
progression of consequences of product use that eventually lead to desired end benefit.
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Thus, for example, a consumer may see that a car has a large engine, leading to fast
acceleration, leading to a feeling of performance, leading to a feeling of power, which
ultimately improves the consumer’s self-esteem. A handgun may aim bullets with
precision, which enables the user to kill an intruder, which means that the intruder will not
be able to harm the consumer’s family, which achieves the desired end-state of security. In
advertising, it is important to portray the desired end-states. Focusing on the large motor
will do less good than portraying a successful person driving the car.

Information search and decision making. Consumers engage in both internal and
external information search. Internal search involves the consumer identifying alternatives
from his or her memory. For certain low involvement products, it is very important that
marketing programs achieve “top of mind” awareness. For example, few people will search
the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve one’s
restaurant from memory before it will be considered. For high involvement products,
consumers are more likely to use an external search. Before buying a car, for example, the
consumer may ask friends’ opinions, read reviews in Consumer Reports, consult several
web sites, and visit several dealerships. Thus, firms that make products that are selected
predominantly through external search must invest in having information available to the
consumer in need—e.g., through brochures, web sites, or news coverage.

A compensatory decision involves the consumer “trading off” good and bad attributes of a
product. For example, a car may have a low price and good gas mileage but slow
acceleration. If the price is sufficiently inexpensive and gas efficient, the consumer may
then select it over a car with better acceleration that costs more and uses more gas.
Occasionally, a decision will involve a non-compensatory strategy. For example, a parent
may reject all soft drinks that contain artificial sweeteners. Here, other good features such
as taste and low calories cannot overcome this one “non-negotiable” attribute.

The amount of effort a consumer puts into searching depends on a number of factors
such as the market (how many competitors are there, and how great are differences between
brands expected to be?), product characteristics (how important is this product? How
complex is the product? How obvious are indications of quality?), consumer characteristics
(how interested is a consumer, generally, in analyzing product characteristics and making
the best possible deal?), and situational characteristics (as previously discussed).
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Two interesting issues in decisions are:

• Variety seeking (where consumers seek to try new brands not because these brands
are expected to be “better” in any way, but rather because the consumer wants a
“change of pace,” and
• “Impulse” purchases—unplanned buys. This represents a somewhat “fuzzy” group.
For example, a shopper may plan to buy vegetables but only decide in the store to
actually buy broccoli and corn. Alternatively, a person may buy an item which is
currently on sale, or one that he or she remembers that is needed only once inside
the store.

A number of factors involve consumer choices. In some cases, consumers will be more
motivated. For example, one may be more careful choosing a gift for an in-law than when
buying the same thing for one self. Some consumers are also more motivated to
comparison shop for the best prices, while others are more convenience oriented.
Personality impacts decisions. Some like variety more than others, and some are more
receptive to stimulation and excitement in trying new stores. Perception influences
decisions. Some people, for example, can taste the difference between generic and name
brand foods while many cannot. Selective perception occurs when a person is paying
attention only to information of interest. For example, when looking for a new car, the
consumer may pay more attention to car ads than when this is not in the horizon. Some
consumers are put off by perceived risk. Thus, many marketers offer a money back
guarantee. Consumers will tend to change their behavior through learning—e.g., they will
avoid restaurants they have found to be crowded and will settle on brands that best meet
their tastes. Consumers differ in the values they hold (e.g., some people are more
committed to recycling than others who will not want to go through the hassle). We will
consider the issue of lifestyle under segmentation.

Family Decision Making: Individual members of families often serve different roles in
decisions that ultimately draw on shared family resources. Some individuals are information
gatherers/holders, who seek out information about products of relevance. These individuals
often have a great deal of power because they may selectively pass on information that
favors their chosen alternatives. Influencers do not ultimately have the power decide
between alternatives, but they may make their wishes known by asking for specific products
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or causing embarrassing situations if their demands are not met. The decision maker(s) have
the power to determine issues such as:

• Whether to buy;
• Which product to buy (pick-up or passenger car?);
• Which brand to buy;
• Where to buy it; and
• When to buy.

Note, however, that the role of the decision maker is separate from that of the purchaser.
From the point of view of the marketer, this introduces some problems since the purchaser
can be targeted by point-of-purchase (POP) marketing efforts that cannot be aimed at the
decision maker. Also note that the distinction between the purchaser and decision maker
may be somewhat blurred:

• The decision maker may specify what kind of product to buy, but not which brand;
• The purchaser may have to make a substitution if the desired brand is not in stock;
• The purchaser may disregard instructions (by error or deliberately).

It should be noted that family decisions are often subject to a great deal of conflict. The
reality is that few families are wealthy enough to avoid a strong tension between demands
on the family’s resources. Conflicting pressures are especially likely in families with
children and/or when only one spouse works outside the home. Note that many decisions
inherently come down to values, and that there is frequently no "objective" way to arbitrate
differences. One spouse may believe that it is important to save for the children’s future; the
other may value spending now (on private schools and computer equipment) to help prepare
the children for the future. Who is right? There is no clear answer here. The situation
becomes even more complex when more parties—such as children or other relatives—are
involved.

Some family members may resort to various strategies to get their way. One is
bargaining—one member will give up something in return for someone else. For example,
the wife says that her husband can take an expensive course in gourmet cooking if she can
buy a new pickup truck. Alternatively, a child may promise to walk it every day if he or she
can have a hippopotamus. Another strategy is reasoning—trying to get the other person(s)
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to accept one’s view through logical argumentation. Note that even when this is done with a
sincere intent, its potential is limited by legitimate differences in values illustrated above.
Also note that individuals may simply try to "wear down" the other party by endless talking
in the guise of reasoning (this is a case of negative reinforcement as we will see
subsequently). Various manipulative strategies may also be used. One is impression
management, where one tries to make one’s side look good (e.g., argue that a new TV will
help the children see educational TV when it is really mostly wanted to see sports
programming, or argue that all "decent families make a contribution to the church").
Authority involves asserting one’s "right" to make a decision (as the "man of the house," the
mother of the children, or the one who makes the most money). Emotion involves making
an emotional display to get one’s way (e.g., a man cries if his wife will not let him buy a
new rap album).

The Means-End Chain. Consumers often buy products not because of their attributes per
se but rather because of the ultimate benefits that these attributes provide, in turn leading to
the satisfaction of ultimate values. For example, a consumer may not be particularly
interested in the chemistry of plastic roses, but might reason as follows:

The important thing in a means-end chain is to start with an attribute, a concrete

characteristic of the product, and then logically progress to a series of consequences (which
tend to become progressively more abstract) that end with a value being satisfied. Thus,
each chain must start with an attribute and end with a value. An important implication of
means-end chains is that it is usually most effective in advertising to focus on higher level
items. For example, in the flower example above, an individual giving the flowers to the
significant other might better be portrayed than the flowers alone.

Attitudes. Consumer attitudes are a composite of a consumer’s (1) beliefs about, (2)
feelings about, (3) and behavioral intentions toward some “object”—within the context of
marketing, usually a brand, product category, or retail store. These components are viewed
together since they are highly interdependent and together represent forces that influence
how the consumer will react to the object.

Beliefs. The first component is beliefs. A consumer may hold both positive beliefs toward
an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled
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and stains papers). In addition, some beliefs may be neutral (coffee is black), and some
may be differ in valance depending on the person or the situation (e.g., coffee is hot and
stimulates--good on a cold morning, but not good on a hot summer evening when one wants
to sleep). Note also that the beliefs that consumers hold need not be accurate (e.g., that pork
contains little fat), and some beliefs may, upon closer examination, be contradictory.

Affect. Consumers also hold certain feelings toward brands or other objects.
Sometimes these feelings are based on the beliefs (e.g., a person feels nauseated when
thinking about a hamburger because of the tremendous amount of fat it contains), but there
may also be feelings which are relatively independent of beliefs. For example, an extreme
environmentalist may believe that cutting down trees is morally wrong, but may have
positive affect toward Christmas trees because he or she unconsciously associates these
trees with the experience that he or she had at Christmas as a child.

Behavioral intention. The behavioral intention is what the consumer plans to do

with respect to the object (e.g., buy or not buy the brand). As with affect, this is sometimes
a logical consequence of beliefs (or affect), but may sometimes reflect other
circumstances--e.g., although a consumer does not really like a restaurant, he or she will go
there because it is a hangout for his or her friends.

Changing attitudes is generally very difficult, particularly when consumers suspect that
the marketer has a self-serving “agenda” in bringing about this change (e.g., to get the
consumer to buy more or to switch brands). Here are some possible methods:

• Changing affect. One approach is to try to change affect, which may or may not
involve getting consumers to change their beliefs. One strategy uses the approach of
classical conditioning try to “pair” the product with a liked stimulus. For example,
we “pair” a car with a beautiful woman. Alternatively, we can try to get people to
like the advertisement and hope that this liking will “spill over” into the purchase of
a product. For example, the Pillsbury Doughboy does not really emphasize the
conveyance of much information to the consumer; instead, it attempts to create a
warm, “fuzzy” image. Although Energizer Bunny ads try to get people to believe
that their batteries last longer, the main emphasis is on the likeable bunny. Finally,
products which are better known, through the mere exposure effect, tend to be better
liked—that is, the more a product is advertised and seen in stores, the more it will
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generally be liked, even if consumers to do not develop any specific beliefs about
the product.
• Changing behavior. People like to believe that their behavior is rational; thus, once
they use our products, chances are that they will continue unless someone is able to
get them to switch. One way to get people to switch to our brand is to use
temporary price discounts and coupons; however, when consumers buy a product on
deal, they may justify the purchase based on that deal (i.e., the low price) and may
then switch to other brands on deal later. A better way to get people to switch to our
brand is to at least temporarily obtain better shelf space so that the product is more
convenient. Consumers are less likely to use this availability as a rationale for their
purchase and may continue to buy the product even when the product is less
conveniently located.
• Changing beliefs. Although attempting to change beliefs is the obvious way to
attempt attitude change, particularly when consumers hold unfavorable or inaccurate
ones, this is often difficult to achieve because consumers tend to resist. Several
approaches to belief change exist:
• Change currently held beliefs. It is generally very difficult to attempt to change
beliefs that people hold, particularly those that are strongly held, even if they are
inaccurate. For example, the petroleum industry advertised for a long time that its
profits were lower than were commonly believed, and provided extensive factual
evidence in its advertising to support this reality. Consumers were suspicious and
rejected this information, however.
• Change the importance of beliefs. Although the sugar manufacturers would
undoubtedly like to decrease the importance of healthy teeth, it is usually not
feasible to make beliefs less important--consumers are likely to reason, why, then,
would you bother bringing them up in the first place? However, it may be possible
to strengthen beliefs that favor us--e.g., a vitamin supplement manufacturer may
advertise that it is extremely important for women to replace iron lost through
menstruation. Most consumers already agree with this, but the belief can be made
stronger.
• Add beliefs. Consumers are less likely to resist the addition of beliefs so long as
they do not conflict with existing beliefs. Thus, the beef industry has added beliefs
that beef (1) is convenient and (2) can be used to make a number of creative dishes.
 21

Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion,
which sounds quite plausible to most people.
• Change ideal. It usually difficult, and very risky, to attempt to change ideals, and
only few firms succeed. For example, Hard Candy may have attempted to change
the ideal away from traditional beauty toward more unique self expression.

One-sided vs. two-sided appeals. Attitude research has shown that consumers often
tend to react more favorably to advertisements which either (1) admit something negative
about the sponsoring brand (e.g., the Volvo is a clumsy car, but very safe) or (2) admits
something positive about a competing brand (e.g., a competing supermarket has slightly
lower prices, but offers less service and selection). Two-sided appeals must, contain
overriding arguments why the sponsoring brand is ultimately superior—that is, in the above
examples, the “but” part must be emphasized.

Perception. Our perception is an approximation of reality. Our brain attempts to make

sense out of the stimuli to which we are exposed. This works well, for example, when we
“see” a friend three hundred feet away at his or her correct height; however, our perception
is sometimes “off”—for example, certain shapes of ice cream containers look like they
contain more than rectangular ones with the same volume.

Subliminal stimuli. Back in the 1960s, it was reported that on selected evenings,
movie goers in a theater had been exposed to isolated frames with the words “Drink Coca
Cola” and “Eat Popcorn” imbedded into the movie. These frames went by so fast that
people did not consciously notice them, but it was reported that on nights with frames
present, Coke and popcorn sales were significantly higher than on days they were left off.
This led Congress to ban the use of subliminal advertising. First of all, there is a question
as to whether this experiment ever took place or whether this information was simply made
up. Secondly, no one has been able to replicate these findings. There is research to show
that people will start to giggle with embarrassment when they are briefly exposed to “dirty”
words in an experimental machine. Here, again, the exposure is so brief that the subjects
are not aware of the actual words they saw, but it is evident that something has been
recognized by the embarrassment displayed.

Organizational buyers. A large portion of the market for goods and services is attributable
to organizational, as opposed to individual, buyers. In general, organizational buyers, who
 22

make buying decisions for their companies for a living, tend to be somewhat more
sophisticated than ordinary consumers. However, these organizational buyers are also often
more risk averse. There is a risk in going with a new, possibly better (lower price or higher
quality) supplier whose product is unproven and may turn out to be problematic. Often the
fear of running this risk is greater than the potential rewards for getting a better deal. In the
old days, it used to be said that “You can’t get fired for buying IBM.” This attitude is
beginning to soften a bit today as firms face increasing pressures to cut costs.

Organizational buyers come in several forms. Resellers involve either wholesalers

or retailers that buy from one organization and resell to some other entity. For example,
large grocery chains sometimes buy products directly from the manufacturer and resell them
to end-consumers. Wholesalers may sell to retailers who in turn sell to consumers.
Producers also buy products from sub-manufacturers to create a finished product. For
example, rather than manufacturing the parts themselves, computer manufacturers often buy
hard drives, motherboards, cases, monitors, keyboards, and other components from
manufacturers and put them together to create a finished product. Governments buy a great
deal of things. For example, the military needs an incredible amount of supplies to feed and
equip troops. Finally, large institutions buy products in huge quantities. For example, UCR
probably buys thousands of reams of paper every month.

Organizational buying usually involves more people than individual buying. Often,
many people are involved in making decisions as to (a) whether to buy, (b) what to buy, (c)
at what quantity, and (d) from whom. An engineer may make a specification as to what is
needed, which may be approved by a manager, with the final purchase being made by a
purchase specialist who spends all his or her time finding the best deal on the goods that the
organization needs. Often, such long purchase processes can cause long delays. In the
government, rules are often especially stringent—e.g., vendors of fruit cake have to meet
fourteen pages of specifications put out by the General Services Administration. In many
cases, government buyers are also heavily bound to go with the lowest price. Even if it is
obvious that a higher priced vendor will offer a superior product, it may be difficult to
accept that bid.

Observation of consumers is often a powerful tool. Looking at how consumers

select products may yield insights into how they make decisions and what they look for.
For example, some American manufacturers were concerned about low sales of their
 23

products in Japan. Observing Japanese consumers, it was found that many of these
Japanese consumers scrutinized packages looking for a name of a major manufacturer—the
product specific-brands that are common in the U.S. (e.g., Tide) were not impressive to the
Japanese, who wanted a name of a major firm like Mitsubishi or Proctor & Gamble.
Observation may help us determine how much time consumers spend comparing prices, or
whether nutritional labels are being consulted.

A question arises as to whether this type of “spying” inappropriately invades the

privacy of consumers. Although there may be cause for some concern in that the particular
individuals have not consented to be part of this research, it should be noted that there is no
particular interest in what the individual customer being watched does. The question is
what consumers—either as an entire group or as segments—do. Consumers benefit, for
example, from stores that are designed effectively to promote efficient shopping. If it is
found that women are more uncomfortable than men about others standing too close, the
areas of the store heavily trafficked by women can be designed accordingly. What is being
reported here, then, are averages and tendencies in response. The intent is not to find
“juicy” observations specific to one customer.

FACTORS INFLUENCING CONSUMER BEHAVIOUR

The factors that influence consumer behavior can be classified into internal factors and
external environmental factors. External factors do not affect the decision process directly,
but percolate or filter through the individual determinants, to influence the decision process.

The individual determinants that affect consumer behaviour are:

 Motivation and involvement
 Attitudes
 Personality and self concept
 Learning and memory
 Information processing
 The external influences or factors are:
 Cultural influences
 24

 Sub-cultural influences
 Social class influences
 Social group influences
 Family influences
 Personal influences
 Other influences

We have already seen that there are many factors which influence the decision making
of consumers. There are various consumer models which help in the under standing of
consumer behaviour. They are formulated by different economist and management scientist
based on various ideas.

Society is a diversified in all aspects. We see this among consumers, marketers,

producers and even among consumer behaviour from theoretical aspects.
The study of consumer behaviour enables marketer to predict consumer behaviour in the
market; it also produces under standing of the role that consumption has in the lives of
individuals.
Consumer behaviour is defined as a behaviour that consumers display while searching for
purchase, using, evaluation and disposal of products, services and ideas that they to satisfy
their needs. The study o f consumer behaviour is concerned not only with what consumers
buy, but also with what they buy it, when, from where and how they buy it and how often
they buy it. It is concerned with learning the specific meanings that products hold for
consumers. Consumer research takes place at every phase of the consumption process;
before the purchase, during the purchase and after purchases.
Consumer behaviour is the study of how people buy, what they buy, when they buy
and why they buy. It attempts to understand the buyer decision processes/buyer decision
making process, both individually and in groups. It studies characteristics of individual
consumers such as demographics, psychographics, and behavioural variables in an attempt
to understand people's wants. It also tries to assess influences on the consumer from groups
such as family, friends, reference groups, and society in general.
What we buy, how we buy, where and when we buy, in how much quantity we buy
depends on our perception, self concept, social and cultural background and our age and
 25

family cycle, our attitudes, beliefs, values motivation, personality, social class and many
other factors that are both internal and external to us.
Consumer behaviour is interdisciplinary; i.e. it is based on concepts and theories
about people that have been developed by scientist in such diverse disciplines as
psychology, sociology, social psychology, cultural anthropology and economics. Consumer
research is the methodology used to study consumer behaviour.
The study of consumer behaviour is the study of how individuals make decision to
spend their available resources on consumption elated items. It includes the study of what,
why, when and form where they buy etc.
Consumer behaviour is a relatively new field of study emerged in late 1960s with no
history or body of research of its own unlike branches of economics. Many early theories
concerning consumer behaviour were based on economic theory on the notion that
individuals act to maximize their benefits in the purchase of goods and services.

OUTLET SELECTION AND PURCHASE

As the number of product and brands are increasing in the market, so are the retail
outlets and it becomes very confusing for the customers to choose the retail stores. The
selecting of a retail store also involves almost the same process as selecting a brand. A retail
outlet relates to a service or a product which caters to the consumer. The retail trade occurs
from the stores but, it also occurs from catalogues, direct mail via print media, television
and radio. Retailing is also done in weekly markets which are put up in different areas of a
city on different days. It is also done from consumer, by means of various media. It has
become very challenging and exciting, both for consumers and marketers. The consumer
may give first preference to the store or the product or, he may give equal importance to
both. Sometimes one prefers a store first, where he can get friendly and logical advice to
buy the product or brand of second priority, if he is assured of proper service and proper
guidance, rather than buying a product of his choice on first priority and missing out on
other important aspects of purchase.

PURCHASE BEHAVIOUR

We have seen that in many products, decision-making is a very lengthy process, and
takes a very long time. The problem is recognized and a lot of information is gathered. After
 26

this is done, the last two stages of decision-making, that is, the purchase and post purchase
come into play. Purchase is very important as it generates revenue, and post purchase gives
us an idea of the likes and dislikes of the consumer. Post purchase behaviour also
establishes s link between the marketer and the target market segment.

Purchase is important to the marketer as the product was planned, produced, priced,
promoted and distributed after a lot of effort. If purchase does not take place, the marketer
has failed in his marketing effort. He then needs to change the marketing mix. He has to
change entire strategy, as the ultimate aim of the marketer is to float a product which will
generate revenue and bring satisfaction to the customers. Purchase is important for his
success, for achieving his objectives and for formulating competitive strategies against the
competitors. It marks the end of his search, end of his efforts and chooses the brand of his
choice for expected benefits.
POST PURCHASE BEHAVIOUR
It is important for the marketer to know whether his product is liked by the
consumer or not. He wants the feedback about his product so that corrective action, if
necessary, can be taken, and the marketing mix be modified accordingly. Post purchase
behaviour is the reaction of the consumers; it gives an idea of his likes and dislikes,
preferences and attitudes and satisfaction towards the product. It indicates whether or not
the purchase motives have been achieved. Purchase is the means and post purchase is the
end. Post purchase behaviour indicates whether or not repeat purchase will be made,
whether the customer will recommend the product to others or not. It indicates whether long
term profits can or cannot be expected. All this can be found out by the post purchase
behaviour or the customers. Post purchase is the last phase in the decision making process.
 27

CHAPTER- 3
INDUSTRY & COMPANY PROFILE

3. INDUSTRY PROFILE:
3.1 INDIAN RETAIL INDUSTRY
India is not known as the ‘nation of shopkeepers’, yet it has as many as 5 million
retail outlets of all shapes and sizes. Some other optimistic estimates place the number at as
high as 12 million. Whatever be the number, India can claim to have the highest number of
retail outlets per capita in the world. But almost all of these are small outfits occupying an
 28

average of 500 sq ft in size, managed by family members, having negligible investment in

land and assets, paying little or no tax and known as the ‘kirana dukaan’ (‘mom and pop
stores’ in the US or the corner grocery stores in the UK). These outlets offer mainly food
items and groceries – the staple of retailing in India. Customer contact is personal and one-
on-one, often running through generations. There are a limited number of items offered
often sold on credit – the payment to be collected at the end of the month. The quality of
items is standard, with moderate pricing.
There is great hype about the growth and prospects of organized retailing industry in
India. It must be noted, however, that organized retailing constitutes barely 2% of the total
retailing industry in India, the rest 98% being under the control of the unorganized, informal
sector of ‘kirana dukaans’. Market research agencies and consultants come up with
encouraging forecasts about this segment of the retailing industry. For instance, A.T.
Kearney’s Global Retail Development Index ranks 30 emerging countries on a 100-point
scale. Its 2007 ranking places India at no.1 for the third consecutive year, with 92 points,
followed by Russia and China. The size of the organized retailing industry is estimated at
US $8 billion and projected to grow at a compound annual growth rate of 40% to US $22
billion by 2010. Overall, the Indian retailing industry is expected to grow from the current
US $350 billion to US $427 billion by 2010 and US $635 billion by 2015.
The economic environment in the post-liberalization period after 1991, has created
several factors that have made this high growth of the organized retailing industry possible.
India’s impressive economic growth of 9% is the prime driver of increasing disposable
incomes in the hands of the consumer. The growing size of the consuming class in India, in
tandem with the entry and expansion of the organized sector players in recent years, has set
the pace for corporate investment in retail business. Practically, every major Indian business
group is looking for opportunities in the growing retailing industry. Among them are the big
names in the Indian corporate sector such as the AV Birla Group, Bharti, Godrej, ITC
Group, Mahindras, Reliance, Tatas, and the Wadia Group.
The international environment presently is replete with examples of the fast paced
growth of the retailing industry in many developing countries around the world. In the post-
liberalization period, there is more openness and awareness of the international
development among Indians. The ease of travel abroad and the exposure through television
and Internet have increased the awareness of the urban Indian consumer to the convenience
of modern shopping. The modern retail formats thus have gained acceptance in India.
Carrefour, Tesco and Walmart are the international players already operating in India, with
 29

several others like Euroset, Supervalue and Starbucks having plans to enter soon. These
international companies bring to India the latest developments in the retailing industry and
helped to set up a benchmark for the domestic players.
The market environment is one of the most significant in terms of the growth and
prospects of the retailing industry in India. In terms of geography, the reach of the
organized retailing industry has been growing. In addition to the mega cities of Mumbai and
Delhi, cities such as Bangalore, Pune, Hyderabad, Kolkata and Chennai are also witnessing
a boom in organized retail activity. Retailers are now trying to focus on smaller cities such
as Nagpur, Indore, Chandigarh, Lucknow or Cochin. There are interesting possibilities
regarding the retail formats. Traditionally, street carts, pavement shops, ‘kirana’ stores,
public distribution systems, kiosks, weekly markets and such other formats unique to India,
have been in existence for a long time. At present, most organized retail formats are
imitations of those used abroad. These include hyper and supermarkets, convenience stores,
department stores and specialty chains. Besides these, there are some attempts at indigenous
formats aimed at the rural markets such as those by ITC’s Choupal Sagar, DSCL’s Hariyali
Kisaan Bazar and Godrej Group’s Godrej Aadhar. Pricing is an important issue in the
retailing industry. Generally, the bulk buying yields lower costs of procurement for the big
retailers – a part of which they pass on to the customer in the form of lower prices. In food
retailing, for instance, there is a clear trend of low prices being the determining factor in
purchase decisions by the cost conscious Indian customer. But, lower prices may not be a
major issue with the higher-income groups that may place greater emphasis on the quality
of products and retail service, store ambience and convenience of shopping. For the
majority of Indian consumer however, price is likely to remain a significantly important
issue in the purchase decision. Competition has already accelerated with many Indian
business groups having entered or likely to enter this booming industry.

Five Reasons why Indian Organized Retail is at the brink of Revolution:

> Scalable and Profitable Retail Models are well established for most of the
categories
> Rapid Evolution of New-age Young Indian Consumers
> Retail Space is no more a constraint for growth
> Partnering among Brands, retailers, franchisees, investors and malls
> India is on the radar of Global Retailers Suppliers
 30

Political environment:
The political environment in India is ambiguous in terms of its support to the
organized retailing industry. This is obvious as the unorganized sector employs nearly 8%
of the Indian population and is widely spread geographically. The overwhelming presence
in terms of 98% of the total retailing industry also is a significant political issue. In a
democracy, the politics of numbers makes it imperative for the political class to adopt an
ambiguous stand. In some cases, politicians have acted in favour of the unorganized sector
by this allowing the setting up of large retail outlets in some states. Overall, however, there
is ambiguity as there are several environmental trends in favor of the development of the
organized retailing industry.
In the regulatory environment, there has been a gradual easing of the restrictions
albeit at a slow pace, in view of the ambiguous political stance as indicated above.
Interestingly, the retailing industry is still not recognized as an industry in India. Foreign
direct investment of upto 100% is not permitted though it is possible for foreign players to
enter through the routes of franchise agreements, cash-and-carry wholesale trading and
strategic licensing agreements. Another problem area is the real estate laws at the level of
state governments that are yet to be cleared on the issue of allowing large stores.
Restructuring of the tax structure for the retailing industry is another regulatory issue
requiring governmental action. However, tariffs on imported consumer items have been
gradually aligned to meet the prescribed WTO norms and reduction of import restrictions
are likely to help the growing organized retailing industry.
socio-cultural environment:
The socio-cultural environment offers many interesting insights into the changing
tastes and preferences of the urban and semi-urban Indian consumer. There is a large rural
market consisting of nearly 720 million consumers, spread over more than 600,000 villages.
India’s consumers are young: 70% of the country’s citizens are below the age of 36 and half
of those are under 18 years of age. These people have deep roots in the local culture and
traditions, yet are eager to get connected with and know the outside world. According to a
DSP Merrill Lynch report, the key factor providing a thrust to the retail boom in India is the
changing age profile of spenders. A group of 7 million young Indians in their mid-twenties,
earning over US $5000 per year is emerging every year. This group constitutes people who
are enthusiastic spenders and like to visit new format retail outlets for the convenience and
time-saving they offer. Malls are also being perceived as not just places for shopping, but
 31

for spending leisure time and as meeting places. There has been an emergence of a
combination of the retail outlet and entertainment centres having multiplexes, with food
courts and video game parlours.
But there are some pitfalls too. For instance, organized retailing in India has had to
deal with the misconception among middle-class consumers that the modern retail formats
being air-conditioned, sophisticated places are bound to be more expensive.
The supplier environment probably offers the biggest constraint on the growth of the
retailing industry in India. Reaching India’s consumers cost effectively is a distribution
nightmare, owing to the sheer geographical size of the country and the presence of
traditional, fragmented distribution and retailing networks and erratic logistics. For instance,
the apparel segment that is one of the two top segments, the other being food, have had to
invest in back-end processes to support supply chains. Supply chain management and
merchandising practices are increasingly converging and apparel retailers are establishing
collaborations with their vendors. Another area of concern is the severe shortage of skills in
retailing. Human resource development for the retailing industry has picked up lately but
may take time to fill the gap caused due to the shortage of personnel.
The technological environment for the organized retailing industry straddles many
areas such as IT support to supply chain management, logistics, transportation and store
operations. Some global retailers have demonstrated that an innovative use of technology
can provide a substantial strategic advantage. The large number of store items, the diversity
of sourcing and the gigantic effort required to coordinate actions in a large retail context is
ideal for using IT as a support function. For instance, an innovative use of IT can help in a
wide variety of functions such as quick information processing and timely decision-making,
reduction in processing costs, real-time monitoring and control of operations, security of
transactions and operations integration. The availability of supply chain management,
customer relationship management and merchandising software can help much while
performing activities such as ordering and tracking inventory items, warehousing,
transportation and customer profiling.
Overall, the Indian scenario offers an interesting mix of possibilities and challenges.
A successful model of large-scale retailing appropriate for the Indian context is yet to
emerge. The modern retail formats accepted globally are in the process implementation and
their acceptability is yet to be established.
 32

3.2. Future Group India

Corporate Profile:

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of
India’s leading business houses with multiple businesses spanning across the consumption
space. While retail forms the core business activity of Future Group, group subsidiaries are
present in consumer finance, capital, insurance, leisure and entertainment, brand
development, retail real estate development, retail media and logistics.
Pantaloon Retail, the group operates over 16 million square feet of retail space in 73
cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay),
 33

Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges.
The company follows a multi-format retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle segment, the group operates
Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value
segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look,
touch and feel of Indian bazaars with the choice and convenience of modern retail.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a
hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and
Bangalore.

Future Capital Holdings, the group’s financial arm provides investment advisory to
assets worth over $1 Billion that are being invested in consumer brands and companies, real
estate, hotels and logistics. It also operates a consumer finance arm with branches in 150
locations. Other group companies include, Future Generalise, the group’s insurance venture
in partnership with Italy’s Generalise Group, Future Brands, a brand development and IPR
company, Future Logistics, providing logistics and distribution solutions to group
companies and business partners and Future Media, a retail media initiative.

• Future Group’s joint venture partners include, US-based stationery products retailer,
Staples and Middle East-based Axiom Communications.
• Future Group believes in developing strong insights on Indian consumers and
building businesses based on Indian ideas, as espoused in the group’s core value of
‘Indianans.’
• The group’s corporate credo is, ‘Rewrite rules, Retain values.’

Future Retail:
Retail forms the core business activity at Future Group and most of its businesses in
the consumption space are built around retail. Future Group’s retail network touches the
lives of more than 200 million Indians in 73 cities and 65 rural locations across the
country. The group currently operates around 1,000 stores spread over 16 million square
feet of retail space. Present in the value and lifestyle segments, the group’s retail formats
cater to almost the consumption expenditure of a wide cross-section of Indian consumers.

Led by Pantaloon Retail, the group’s flagship company, the group manages some of
India’s most popular retail chains like Pantaloons - a chain of fashion destinations, Big
Bazaar - a uniquely Indian hypermarket chain, Food Bazaar - a supermarket chain that
blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice,
convenience and quality and Central - a chain of seamless destination malls. Some of its
other formats include Ethnicity - India's first concept store, which recreates the experience
 34

of a traditional ethnic market in a modern retail format, Brand Factory, Planet Sports, all,
Top 10, and Star and Sitar a...

Retailing of products and services related to home building and home improvement
is led through the group’s formats, Home Town, a large-format home solutions store, along
with specialized formats for home furniture and home furnishing through, Collection I and
Furniture Bazaar and consumer electronics through e-Zone and Electronics Bazaar.

The group also operates India’s leading rural retailing chain, Aadhaar that is
present in over 65 locations in rural India. Aadhaar, an Agri-service cum rural retail
initiative, provides a completeSolution to the Indian farmers.

Future Group Manifesto:

“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules
yet unwritten; create new opportunities and new successes. To strive for a glorious future
brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our customers,
employees, shareholders, associates and partners.

Our customers will not just get what they need,

But also get them where, how and when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends; we will set trends by marrying our
understanding of the Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us succeed
in the Future. We shall keep relearning. And in this process, do just one thing.
“Rewrite Rules. Retain Values”.

Core Values:

Indian ness: 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.

 35

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.

2.3. BIG BAZAAR

Type : Hypermarket
Founded : 2001
Head Quarters : Jogeshwari
Industry : Retail
Products : Department, Grocery
Promoter : Kishore Biyani
Parent : Pantaloon Retail India Ltd.
Punch line : “Is se sasta aur accha kahin nahi”

Big bazaar is a chain of department stores in India currently with 120 outlets. It is owned by
Pantaloon Retail India Ltd, Future group. It works on the same economy model as Wal-
Mart and has been successful in many Indian cities and small towns. The idea was
pioneered by entrepreneur Mr.KishoreBiyani, the CEO of Future Group. Currently Big
Bazaar stores are located only in India. It is the fastest growing chain of department stores
and aims at having 350 stores by 2010. Big Bazaar is the destination where you get products
available at price lower than MRP, setting a new level of standard in price, convenience and
quality.

Big Bazaar is not just another hypermarket. It caters to every need of your family. Where
Big Bazaar scores over other stores is its value for money proposition for the Indian
customers.

At Big Bazaar, you will definitely get the best products at the best prices-that’s what we
guarantee. With the ever increasing array of private labels, it has opened the doors into the
world of fashion and general merchandise including home furnishings, utensils, crockery,
cutlery, sports goods and much more at prices that will surprise you. And this is just
beginning. Big Bazaar plans to add much more to complete your shopping experience.
 36

VISION:

• To deliver Everything, Everywhere, Every time for Every Indian Consumer in

the most profitable manner.
• One of the core values at Future Group is, ‘India ness’ and its corporate credo
is- “Rewrite rules, Retain values.”

Mission:

• We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.

• We will be the trendsetters in evolving delivery formats, creating retail realty,

making consumption affordable for all customer segments – for classes and for masses.

• We shall infuse Indian brands with confidence and renewed ambition.

• We shall be efficient, cost- conscious and committed to quality in whatever we do.

• We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.

• In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic
expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in
Kolkata, Hyderabad and Bangalore.

• The group’s specialty retail formats include, books and music chain, Depot,
sportswear retailer, Planet Sports, electronics retailer, e-Zone, home improvement
chain, HomeTown and rural retail chain, Aadhaar, among others. It also operates
popular shopping portal, futurebazaar.com

• Future Group believes in developing strong insights on Indian consumers and

building businesses based on Indian ideas, as espoused in the group’s core value of
‘Indianans.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’

• We have a store opening virtually every fortnight; Ihave lost count now of how
many I have opened." - Kishore Biyani

Value of Branding
• Product dies but a good brand never die

• sales or market share

 37

• Premium price

• Differentiation

• Product Brand

• Concept Brand

• Corporate Concept Brand

• Brand Culture Brand

• Brand Religion Brand

Big Bazaar: Positioning & Establishment

• Big Bazaar ensures that no other kirana store / departmentalstore are offering
considerable discount compared to its own price. This helped Big Bazaar in being
the "value for money" store.

• Big Bazaar scores high on product mix as compared to kiranastore.

• Cheap and local products are heavily stocked in Big Bazaar which makes it easier
to attract lower middle class category of customers.

• Promotion of kirana is rare event but Big Bazaar used thischannel efficiently to
establish itself as national brand. Customer loyalty resulting in high up sell, i.e.,
selling to existing customers.

• Big Bazaar refrains from high-end locations for business which reduces its rental
budget and provides competitive advantage over competitors. Kishore Biyani has
taken "early movers advantage" in many retail spaces.

News related big bazaar:

Future Group to hive off Big Bazaar

 Kishore Biyani-led Future Group is considering hiving-off its hypermarket format

Big Bazaar into a separate company. “Managing a $1 billion business already is a
challenge”, Biyani said speaking to the reporters on Friday, referring to the big
Bazaar format, which is expected to generate revenue of $1 billion in the fiscal
2007-08. Big Bazaar is a hypermarket format of the Pantaloon Retail (India) Ltd.

 The Group expects to increase its revenues to $7-8 billion by 2011, of which Big
Bazaar is expected to contribute a large chunk of around $4 billion. It has emerged
as the largest retail format of Future Group's retail division. Biyani said that the
 38

proposal is at a very initial stage and has to be taken to the board. “Currently we
have more than 80 Big Bazaars and we are planning to scale it up to 160 by the year
end”, he said. Highlighting that the company was going to go very aggressive in
rolling out the Big Bazaar format, he said that the total floor area by 2011 would
scale up to 30 million square feet from the present figure of 10 million square feet.
Speaking on the other formats, Biyani said that the group was expecting a revenue
of Rs 1,300 crore from the HomeTown stores which the company launched last
year.

2.3.1. PRODUCT LINE

Here, one finds over 170,000 products under one roof that cater to every need of a
family, making Big Bazaar India’s favorite shopping destination. Where Big Bazaar scores
over other stores is its value for money proposition for the Indian customers. Big Bazaar,
one finds a huge variety of products to select from with a good price and quality. With the
ever increasing array of private labels, it has opened the doors into the world of fashion and
general merchandise including home furnishings, utensils, crockery, cutlery, sports goods
and much more at surprisingly low prices.In recent years, Big Bazaar has adopted value
pricing in which they win loyal customers by charging a fairly low price for a high – quality
offering. However, consistent low price for the products is not only the universally desired
characteristic.

PROCESS FOLLOWED

Segmentation, targeting, and positioning together comprise a three stage process.

We

a. Determine which kinds of customers exist,

b. Select which ones we are best off trying to serve,

c. Implement our segmentation by optimizing our products/services for that segment

and communicating that we have made the choice to distinguish ourselves that way.

2.3..a. SEGMENTATION:
 39

Segmentation involves finding out what kinds of consumers with different needs
exist. In the auto market, for example, some consumers demand speed and performance,
while others are much more concerned about roominess and safety. In general, it holds true
that “You can’t be all things to all people,” and experience has demonstrated that firms that
specialize in meeting the needs of one group of consumers over another tend to be more
profitable.

Several different kinds of variables can be used for segmentation:-

1. Demographic variables essentially refer to personal statistics such as income,

gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size.
Campbell’s soup, for instance, has found that Western U.S. consumers on the average
prefer spicier soups—thus, you get a different product in the same cans at the East and
West coasts. Facing flat sales of guns in the traditional male dominated market, a
manufacturer came out with the Lady Remmington, a more compact, handier gun more
attractive to women. Taking this a step farther, it is also possible to segment on lifestyle
and values.”
2. Some consumers want to be seen as similar to others, while a different segment
wants to stand apart from the crowd.

3. Another basis for segmentation is behavior. Some consumers are “brand loyal”—
i.e. they tend to stick with their preferred brands even when a competing one is on sale.
Some consumers are “heavy” users while others are “light” users. For example, research
conducted by the wine industry shows that some 80% of the product is consumed by 20%
of the consumers—presumably a rather intoxicated group.

4. One can also segment on benefits sought, essentially bypassing demographic

explanatory variables. Some consumers, for example, like scented soap (a segment likely
to be attracted to brands such as Irish Spring), while others prefer the “clean” feeling of
unscented soap (the “Ivory” segment). Some consumers use toothpaste primarily to
promote oral health, while another segment is more interested in breathe freshening.

2.3.b. TARGETING:
 40

1. In the next step, we decide to target one or more segments. Our choice should
generally depend on several factors:-
 First

How well are existing segments served by other manufacturers? It will be more
difficult to appeal to a segment that is already well served than to one whose needs are
not currently being served well.

 Secondly

How large is the segment, and how can we expect it to grow?

 Thirdly

Do we have strengths as a company that will help us appeal particularly to one group of
consumers?

2. Big Bazaar targets higher and upper middle class customers.

3. The large and growing young working population is a preferred customer

segment.

4. Big Bazaar specifically targets working women and home makers who are the
primary decision makers.It is part of Big Bazaar’s new Guerrilla Marketing Strategy.

2.3.c.POSITIONING:

Positioning involves implementing our targeting. For example, Apple Computer

has chosen to position itself as a maker of user-friendly computers.
 41

2.3.d. MARKETING MIX

Main Aspects of Marketing MiX

The easiest way to understand the main aspects of marketing is through its more
famous synonym of "4Ps of Marketing". The classification of four Ps of marketing includes
marketing strategies of product, price, placement and promotion. The following diagram is
helpful in determining the main ingredients of the four Ps in a marketing mix.
 42

PRODUCT:

In simpler terms, product includes all features and combination of goods and related
services that a company offers to its customers.

Product is the most important aspect of marketing mix for two main reasons. First,
for manufacturers, products are the market expression of the company's productive
capabilities and determine its ability to link with consumers. So product policy and strategy
are of prime importance to an enterprise, and product decisions dictate the scope and
direction of company activity. Moreover, the market indicators such as profits, sales, image,
market share, reputation and stature are also dependent on them. Secondly, it is imperative
to realize that the product of any organization is both a component and a determinant of the
marketing mix as it has a great influence on the other elements of the mix: advertising,
personal selling, channels of distribution, physical distribution and pricing. So without
proper product policy, a company can not pursue for further elements of marketing mix.

PRICING:

Pricing is basically setting a specific price for a product or service offered. In a

simplistic to the concept of price as the amount of money that customers have to pay to
obtain the product. Setting a price is not something simple. Normally it has been taken as a
general law that a low price will attract more customers. It is not a valid argument as
 43

customers do not respond to price alone; they respond to value so a lower price does not
necessarily mean expanded sales if the product is not fulfilling the expectation of the
customers

Generally pricing strategy under marketing mix analysis is divided into two parts:
price determination and price administration (ibid).

Price determination is referred to as the processes and activities employed to arrive

at a price for a product including consideration of relative prices of products within the
same line, and differences in price for similar products of differing grades and qualities.

Price administration is referred to as the activities involved in fitting basic prices to

particular sales situations such as geographic locale, functions performed by customers,
position of distribution channel members, or special sales situations.

PLACEMENT:

Placement under marketing mix involves all company activities that make the
product available to the targeted customer while planning placement strategy under
marketing mix analysis, companies consider six different channel decisions including
choosing between direct access to customers or involving middlemen, choosing single or
multiple channels of distributions, the length of the distribution channel, the types of
intermediaries, the numbers of distributors, and which intermediary to use based on the
quality and reputation .

PROMOTION:

Promotional strategies include all means through which a company communicates

the benefits and values of its products and persuades targeted customers to buy them . The
best way to understand promotion is through the concept of the marketing communication
process. Promotion is the company strategy to cater for the marketing communication
process that requires interaction between two or more people or groups, encompassing
senders, messages, media and receivers

Limitation of Marketing Mix Analysis (4Ps of Marketing)

 44

Despite the fact that marketing mix analysis is used as a synonym for the 4Ps of
Marketing, it is criticised on the point that it caters seller's view of market analysis not
customers view. To tackle this criticism, attempted to match 4 Ps of marketing with 4 Cs of
marketing to address consumer views:

Product – Customer Solution

Price – Customer Cost
Placement – Convenience
Promotion – Communication

2.3.e. RETAIL MIX:

Merchandise assortment

The company was looking for a solution that would bring all of its businesses and
processes together. After a comprehensive evaluation of different options and software
companies, the management at Pantaloon decided to go in for SAP.

Some of the qualities of SAP retail solutions are that it supports product
development, which includes ideation, trend analysis, and collaboration with partners in the
supply chain; sourcing and procurement, which involves working with manufacturers to
fulfil orders according to strategic merchandising plans and optimise cost, quality, and
speed–variables that must be weighted differently as business needs, buying plans, and
market demand patterns change; managing the supply chain, which involves handling the
logistics of moving finished goods from the source into stores and overseeing global trade
and procurement requirements; selling goods across a variety of channels to customers,
which requires marketing and brand management; managing mark-downs and capturing
customer reactions, analysing data, and using it to optimise the next phase of the design
process.

2. Place

In the channels of distribution, the physical facilities point of location.

3. Price

4. Visual merchandising
 45

Visual merchandising supports:-

a. sales

b. retail strategies

c. communicates with customers

d. communicates image

e. supports retailing trends.

Visual merchandising includes:-

1. Interior merchandising

Sufficient visual merchandizing within the store that included danglers, signage,
standees, distribution of pamphlets, which gave details of the offer.

Display, point of purchase, fixture, equipment and furnishings store layout.

Product packaging and labels.

2. Exterior merchandising

TVC on popular entertainment channels like Star Plus, Sony, Set Max, and Star
One.

Road shows carried out by the Big Bazaar staff with announcements about the offer
to make people aware.

Newspaper ads in almost all the local dailies like Sakal, The Times of India, on
different days during the period of the offer.

 Store atmosphere.
 46

CHAPTER- 4
DATA ANALYSIS

ANALYSIS OF DATA
 47

In this chapter an attempt is made to study about behaviour of consumers towards utensils
in Big Bazaar Ameerpet.

Table No. 1

Showing the no. of customers in Gender classes :

Category No. of Percentage
Respondents

Male 10 10 %
Female 90 90 %
Total 100 100 %

Chart no.1:- Gender wise classification of the respondents

Interpretation:

We have surveyed 100 people from which 90 were female and 10 were men. We
chose women as the dominating influence, as utensils are mostly women’s’ preference.
Women generally involve more in utensil purchase. Men involve less; they just go with the
choices of women. Hence women are concentrated in the survey.

Table No. 2

Showing the no. of respondents belonging to different income level

 48

Income Group (in Rs) No. of Percentage

respondents
Below 12000 10 10
12000-16000 30 30
16000-20000 40 40
Above 20000 20 20
Total 50 100

Chart No. 2

Interpretation:

We have found that 40% of the 100 people we surveyed had their family income in
between rs 16000-20000. 30% of them ranged about 12000-16000 and below 12000
gathered 10 candidates. We then have the above average group with rs 20000 as their
family income. Hence we come to the conclusion that the average family income of the
middle class people who buy utensils from Big Bazaar Ameerpet is between 16000-20000.

Table No. 3

Showing the marital status of the customers

 49

Status No. of Respondents Percentage

Unmarried 12 12%

Married 88 88%

Total 50 100%

Chart No. 3

Percentage

12%

Unmarried
Married

88%

Interpretation

Through this survey we found out that 88% of the people in the surveyed are married.
It gives us a clear indication that married men and women involve more than that of the
unmarried ones.

Table 4

Showing the no. of respondents belonging to different age groups.

Age No. Of respondents Percentage

 50

Below 18 16 16%
18-28 44 44%
28-38 28 28%
Above 38 12 12%
Total 100 100%

Chart No. 4

Interpretation
Through the study we found that women and men age ranging from 18-28 and 28-
38 involve more in utensil purchase. The age group above 38 pay less attention as they
only purchase utensils for up gradation of their kitchen ware. Men and women falling
below the age of 18 also involve little in utensil purchase

Table – 5

Showing no of customers aware of utensils available in Big Bazaar Ameerpet.

Status No of respondents Percentage

 51

Yes 88 88%
No 12 12%
Total 100 100%

Chart – 5

Interpretation

It is good to know that, 88% of the customers know about utensils available in the store
Big Bazaar Ameerpet. 12% of the people don’t even know what utensils are available in the
store. The customer’s discovery of the available products by advertisements or merchandise
is a different issue.

Table: 6

Showing no. of customers satisfied with prices of utensils in Big Bazaar Ameerpet.

Status No of respondents Percentage

 52

Yes 80 88.88%
No 10 11.12%
Total 90 100%

Interpretation:
We have interpreted that the customers of Big Bazaar Ameerpet are satisfied by
purchasing the utensils available in the store. 88% of the customers of the store are happy
with provisions, offers, and environment provided by the management of the store whereas
12% people are expecting little more changes and improvisations.

Table – 07

Showing the media through which the customers came to know about Utensils in Big
Bazaar- Ameerpet.

Media No of respondents Percentage

 53

Newspaper 20 20
Television 40 40
Yellow pages 10 10
Friend & Relatives 30 30
Total 100 100

Chart-07

Interpretation:
Our survey amicably shows that the customers are made aware of Big Bazaar
Ameerpet through Newspaper mainly. Plus this store relies on mouth to mouth publicity.
40% of 100 people knew about Big Bazaar Ameerpet through Newspapers. 30 out of 100
people are made aware by their friends and relatives.

Table – 08

Showing the factors which influenced the customers in purchasing from Big Bazaar-
Ameerpet.

Factors No of Respondents Percentage

Company image 22 22%
 54

Quality 40 40%
Advertisements 12 12%
Collection 26 26%
Total 100 100%

TABLE- 8

26% 22%
Company image
Quality
Advertisements

12% Collection
40%

Interpretation:

Quantity is temporary but quality is permanent. It also reflects on the survey results. As
the quality of utensils provided by Big Bazaar-Ameerpet speaks for its sale and loyality of
customers. We see that 40% of the customers believe in the quality of Big Bazaar-
Ameerpet and 26% buy from these stores because of the variety of ornaments available in
their showroom. 12% buy after watching the advertisements in the paper or TV. 22% are
the loyal ones; they buy because of the company image.

Table – 09

Showing the number of customers happy with the showroom facilities:

Status No of respondents Percentage

Yes 86 86%
No 14 14%
 55

Total 100 100%

Chart – 09

Interpretation

We can see that 86% of all the customers are satisfied with the showroom facilities
provided by the Big Bazaar-Ameerpet administrators. 14% are not satisfied with the
facilities of the showroom as they may expect too much from the Big Bazaar-Ameerpet.
The experience of customers in the showroom is good enough as the service is excellent.
All the customers are more or less satisfied with the service provided by the showroom
facilities.

Table – 10

Showing the no. of customers who got immediate response on complaints registered:

Status No. Of Respondents Percentage

Yes 92 92%
 56

No 08 08%
Total 100 100%

Chart – 10

Interpretation

92% of the people feel that Big Bazaar-Ameerpet service is excellent. All their
complaints are met with wonderful service. As soon as the complaints are registered, the
Big Bazaar service acts on that and satisfies customers. Only 8% think that the service of
Big Bazaar-Ameerpet stores is not up to the mark. Most of the customers are satisfied,
which was the main aim of the survey.

Table – 11

Showing the customers rating on the salesmen relationship:

Rating No of respondents percentage

Excellent 10 10%
Good 46 46%
Average 44 44%
 57

Poor 0 0%
Total 100 100%

Chart – 11

Interpretation

The customers of Big Bazaar-Ameerpet are happy with the customer relationship they
hold with the floor salesmen. 46% people feel that the salesmen relationship is good, as
44% feel that the salesmen relationship is average and 10% feel that it is excellent. One
good thing we came to know that, the service and support provided by Big Bazaar-
Ameerpet stores are not poor. Some feel that the salesmen relationship needs
improvements.

Table – 12

Showing the customers rating on the service facility available:

Rating No. Of respondents Percentage

Excellent 12 12%
Good 48 48%
 58

Average 40 40%
Poor 0 0%
Total 100 100%

Chart – 12

Interpretation:
Here we find out that the customers are well attended by the staff and the salesmen
behaviour is up to the mark. Most of the people approx. 48% of them think that the service
available for the customers is good. The showroom is fully centralized AC and the
customers feel that they will pay money to good use and the trust gained by the floor
manager provides ample opportunity to materialize the relationship between the customers
and the employees.

Table – 13

Showing the customers rating on their level of satisfaction:

Rating No of Respondents Percentage

Excellent 12 12%
Good 52 52%
Average 36 36%
 59

Poor 0 0%
Total 100 100%

Chart – 13

Interpretation:

We see that 52% of the people feel that satisfaction level reached by Big Bazaar-
Ameerpet is good and 36% of 100 people feel its average. 12% think that the overall
satisfaction level reached by Big Bazaar-Ameerpet is excellent; as compared to other shops
available in the market. This 12% are the loyal customers which the company mainly
focuses on. The survey reached a conclusion that Big Bazaar-Ameerpet is head and
shoulders ahead of their competitors when it comes to level of satisfaction.
 60

CHAPTER- 5
FINDINGS & SUGGESSIONS
 61

This part gives overall information about the consumer behaviour of Big Bazaar-
Ameerpet customers. It also includes findings, suggestions and conclusions about the study.

5.1. FINDINGS

 Customers of Big Bazaar-Ameerpet are mainly from middle class families.

 Most of the Customers of Big Bazaar-Ameerpet are of all age groups.
 Big Bazaar-Ameerpet has got large no. of utensils ornaments for customers.
 Only a few customers are not aware of utensils available in Big Bazaar-Ameerpet.
 Factors like company image, quality have highly influenced the purchase.
 Major no. of respondents are satisfied with the showroom facility.

 Respondents got immediate response for the complaints registered.

 Salesman responsiveness is rated as somewhat good and average.

 Big Bazaar-Ameerpet provides good service facility.

 The overall performance of Big Bazaar-Ameerpet is good.

 Level of satisfaction of customers is good.

 Respondents are ready to insist their well wishers to purchase from Big Bazaar-
Ameerpet.

 The consumer behaviour of Big Bazaar-Ameerpet is good.

 62

5.2. SUGGESTIONS

 The company should focus on giving advertising highlighting the unique

feature and benefits of their products.

 Among the service facilities, respondents suggest to follow some

techniques to reduce the difficulties faced during billing like queuing, waiting etc.

 Steps should be taken to attract more male customers.

 There were some complaints that some of the offers offered by the

company were confusing.

 Products that are out of stock should be displayed, so that the customers

could save their time and concentrate in buying other models.

 There were some product gaps and they should be fitted with the required.
 63

5.3. CONCLUSION

To conclude the overall responses of the customers of Big Bazaar-Ameerpet is

good. The overall performances in all areas are satisfactory.
Further some kind of promotion activities required to hold the present customers
and make new customers.

If this project proves to be of any usefulness to the reader then I will be very proud
of it, that all the hard work done by my faculty and me has been fruitful.
Above all, I hope to have shown my reader that the answer of their questions on the
working of the company and its marketing strategies which made it a retail giant and
capture the big part of the market. How ever it is difficult to know about a company but
training provided to me helped me a lot to know the retail store and consumers behavior to
a great extent. i came to know how a consumer reacts to every action made by retail to
pursue them with their promotional and marketing strategies.

This project helped me to clear my else doubts and step over the boundaries of
confusion and queries with reference to retail store and helped to be more focused and
helped me a lot to understand the concepts in my studies.
 64

BIBLIOGRARY
 65

BIBLIOGRAPHY AND REFERENCES

Books referred to:

KOTLER & KELLER : PRINCIPLES OF MARKETING

A. VINOD : MARKETING MANAGEMENT

MATIN KHAN : CONSUMER BEHAVIOUR

Websites visited:

 www.wikipedia.org
 www.google.com
 www.scribd.com
 www.bigbazaar.com
 www.pantaloons.com
 66

ANNEXURE
 67

QUESTIONNAIRE

1) Name: ________________________________
Address: ________________________________
Ph. No: ________________________________

2) Sex:
Male [ ]
Female [ ]

3) Income group (Rs /Month):

Below 12000 [ ]
12000-16000 [ ]
16000-20000 [ ]
Above 20000 [ ]

4) Marital status:
Married [ ]
Unmarried [ ]

5) Age (in years):

Below 18 [ ]
19 - 28 [ ]
29 - 38 [ ]
Above 38 [ ]

6) Are you aware of products other than utensils available in Big Bazaar- Ameerpet?
Yes [ ]
No [ ]

7) Which factor influenced your purchase?

Company image [ ]
Quality [ ]
Advertisement [ ]
Selection available [ ]

8) Are you satisfied with the showroom facility of Big Bazaar-Ameerpet?

Yes [ ]
No [ ]
 68

9) How would you rate the designs of utensils ornaments available in Big Bazaar
Ameerpet?
Excellent [ ]
Good [ ]
Average [ ]
Poor [ ]

10) Are you able to get immediate response for the complaints registered?
Yes [ ]
No [ ]

11) How would you rate the salesman responsiveness of Big Bazaar-Ameerpet?
Excellent [ ]
Good [ ]
Average [ ]
Poor [ ]

12 How would you rate the service facilities available in Big Bazaar-Ameerpet?
Excellent [ ]
Good [ ]
Average [ ]
Poor [ ]

13 How would you rate overall performance of Big Bazaar-Ameerpet with respect
to other shops?
Excellent [ ]
Good [ ]
Average [ ]
Poor [ ]

14) What is your level of satisfaction?

Excellent [ ]
Good [ ]
Average [ ]
Poor [ ]

15) Will you insist your well wishers, friends and relatives to purchase from Big
Bazaar-Ameerpet?
Yes [ ]
No [ ]

20) Suggestions, if any:

______________________________________________
 69

______________________________________________
______________________________________________