01-06-2013, 12:24 PM
A RESEARCH PROJECT REPORT ON A STUDY ON BUYING BEHAVIOUR OF CUSTOMER IN BIG BAZAAR IN DELHI
A STUDY ON BUYING.doc (Size: 730 KB / Downloads: 30)
Executive Summary
As customers taste and preferences are changing, the market scenario is also changing from time to time. Today’s market scenario is very different from that of the market scenario before 1990. There have been many factors responsible for the changing market scenario. It is the customers changing tastes and preference, which has bought in a change in the market. Income level of the people has changed; life styles and social class of people have completely changed now than that of olden days. There has been a shift in the market demand in today’s world. Technology is one of the major factors, which is responsible for this paradigm shift in the market. Today’s generation people are no more dependent on hat market and far off departmental stores. Today we can see a new era in market with the opening up of many departmental stores, hypermarket, shopper’s stop, malls, branded retail outlets and specialty stores. In today’s world shopping is not any more tiresome work rather it’s a pleasant outing phenomenon now
Introduction About the Company
Pantaloon Retail India Ltd (PRIL) has emerged as the leading retailer in India with its chain of Pantaloon, Big Bazaar and Food Bazaar stores. With the right mix of management capabilities, high growth product profile, well-developed strategy and extensive IT and logistics capabilities, PRIL has ensured rapid growth. More importantly, while most organized retailers are struggling to be in black, PRIL has demonstrated a consistent track record of profitable growth.
COMPANY RESEARCH
PRIL has chalked out an aggressive expansion plan to increase its retail space to over 1,740,000 sq.ft. over the next two years. Space for additional 4 Pantaloon’s, 11Big Bazaars and 2 Food Bazaar’s has already been finalized, and these would be Operational over the next two years. PRIL aims to set up over 30 Food Bazaar’s and is scouting for appropriate locations for the same.
After popularizing the concept of hypermarket in India, PRIL is now also setting up a new format shopping mall in the country under the name ‘Central’. The format would be on the lines of a Selfridhes in London or a Central Mall in Bangkok. Two malls of 100,000 and 240,000 sq.ft. are being set up in Bangalore and Hyderabad respectively
Diversity of product range will ensure profitable volume growth
To achieve better return on retail space, PRIL uses certain product categories as margin managers and certain product categories to generate traffic. The food and groceries business will act as key volume growth driver while high share of apparel (which account for over 80% sales in Pantaloon Stores and 40% in Big Bazaar) will enable PRIL to maintain high margins. The management has demonstrated its ability to improve stock turnovers in both the formats successfully, which has enabled significant margin improvement.
Shop-in-Shop partners typically pay a fixed rental for their space and share a part of their profits. By expanding the range of product offerings and retail formats, PRIL today has been able to target a much larger share of the consumer’s basket (about 70% as against less than 8% in 1994).
PRIL will be adding new product categories to its business in both Pantaloons as well as Big Bazaar stores. Gold, Investment products, White goods and Appliances, Footwear will be the new product categories that will be added. These product categories will help in improving Walk In’s into its stores and generate additional business from the existing categories too.
Competition from global players would pose a major threat
Most global retailing majors have been keen on entering into the huge untapped Indian market. However policy restricts Direct Foreign Investment in the sector. There is a high likelihood of the Government lifting restriction on FDI into the retail sector in the near future. Entry of these foreign giants - with significant experience and skills in retail management would increase competition for PRIL. However, we believe that given the widely dispersed and heterogeneous nature of Indian markets, a foreign entrant would find it extremely difficult to establish a national presence. Pantaloon with its early
Mover advantage and understanding of local markets is well entrenched to retain high customer share.
About Pantaloon Retail (India) Ltd
Pantaloon Retail (India) Limited is a leading retailer with a turnover of Rs. 1088 crores for the financial year ending June 2008. The company is headquartered in Mumbai and has a presence in Lifestyle Retailing through 18 Pantaloons Stores, 3 Central Malls in Bangalore, Hyderabad and Pune. In Value Retailing it is present through 24 Big Bazaar hypermarkets, 38 Food Bazaars and 2 Fashion Stations. PRILhas a national presence with 2.6 million square feet of retail space across 24 cities.
Pantaloon: Fashion by Pantaloon
Pantaloon is the company's departmental store and part of life style retail format. In fact, PRIL took its very initial steps in the retail journey by setting up the first Pantaloon store in Kolkata in 1997. In a short time Pantaloon has been able to carve a special place for it self in the hearts and minds of the aspirational Indian customers. The company has depth of offering for both men and women at affordable prices. A striking characteristic of Pantaloon has been the strength of its private label programme. John Miller, Ajile. Scottsvile, Lombard, Annabelle are some of the successful brands created by the company. With 13 stores across the country and an ever-increasing stable of private brands, Pantaloon - in the coming years is poised to become a leading fashion trendsetter.
Big Bazaar: Is se sasta aur acha kahin nahin
Big bazaar is the company’s foray into the world of hypermarket discount stores, the first of its kind in India. Price and the wide array of products are the USP’s in Big Bazaar. Close to two lakh products are available under one roof at prices lower by 2 to 60 per cent over the corresponding market prices. The high quality of service, good ambience, implicit guarantees and continuous discount programmes have helped in changing the face of the Indian retailing industry. A leading foreign broking house compared the rush at Big Bazaar to that of a local suburban train.
Food Bazaar – Wholesale prices
Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and International supermarket atmosphere with the objective of giving the customer all the advantages of Quality, Range and Price associated with large format stores and also the comfort to See, Touch and Feel the products. The company has recently launched an aggressive private label programme with its own brands of tea, salt, spices, pulses, jams, ketchups etc. With unbeatable prices and vast variety (there are 42 varieties of rice on sale), Food Bazaar has proved to be a hit with customers all over the country.
Big Bazaar
Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and which work on Wal-Mart type economies of scale. They have had considerable success in many Indian cities and small towns. Big Bazaar provides quality items but at an affordable price. It is a very innovative idea and this hypermarket has almost anything under one roof….Apparel, Footwear, Toys, Household Appliances and more. The ambience and customer care adds on to the shopping experience.