1.1.

Industry Profile

1.1.1.Retailing
The word ‘retail’ is derived from the French word ‘retailer’, meaning ‘to cut a piece off’ or ‘to
break bulk’. In simple terms, it implies a first-hand transaction with the customer.

Retailing involvers a direct interface with the customer and the coordination of business
activities right from the concept or design stage of a product or offering to its delivery and post-
delivery service to the customer. The industry has contributed to the economic growth of many
countries and is undoubtedly one of the fastest changing and dynamic industries in the world
today.

1.1.2. Indian retail industry

The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. With growing market demand, the
industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected
to grow from Rs. 35,000 crone in 2004-05 to Rs. 109,000 crone by the year 2010.

The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12
million retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than
500 square feet in size, the per capital retail space India being 2 square feet compared to the US
figure of 16 square feet India’s per capital retailing space is thus the lowest in the world.

With more than 9 outlets per 1000 people, India has the largest number in the world. Most
of them are independent and contribute as much as 96% to total retail sales. Because of the

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increasing number of the nuclear families, working women, greater work pressure and increased
commuting time, convenience has become a priority for Indian consumers. They want everything
under one roof for easy access and multiplicity of choice. This offers an excellent opportunity for
organized retailers in the country which account for just 2% and modern stores 0.5% of the
estimated US Dollar 180 billion worth of goods that are retailed in India every chain, Wal-Mart.

1.1.3.Major Retailers in India

1.1.3.1. Pantaloon:

Pantaloons is one of the biggest retailers in India with more than 450 stores across the
country. Headquartered in Mumbai, it has more than 5 million sq. ft. retail space located across
the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft. by the
year 2010. In 2001, Pantaloons launched country's first hypermarket ‘Big Bazaar’. It has the
following retail segments:

 Food & Grocery: Big Bazaar, Food Bazaar

 Home Solutions: Hometown, Furniture Bazaar, Collection-I

 Consumer Electronics: e-zone

 Shoes: Shoe Factory

 Books, Music & Gifts: Depot

 Health & Beauty Care: Star, Sitar

 E-tailing: Futurebazaar.com

 Entertainment: Bowling Co.

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1.1.3.2.Tata Group

Tata group is another major player in Indian retail industry with its subsidiary Trent, which
operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest
book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lake sq. ft. retail space
across the country.

1.1.3.3RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food &
grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and
beauty care outlets ‘Health & Glow’.

1.1.3.4. Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh
stores and Reliance Mart are quite popular in the Indian retail market. It’s expecting its sales to
reach Rs. 90,000 cores by 2010.

Retailers ranging from Pantaloons to RPG to Pharsalus or the Tata’s are working towards
exploiting this model, perceived by consumers as more value enhancing. But in the long run,
what is most likely to succeed is a more balanced multi-format strategy. Finally, while in the first
flush of the retail boom, the elimination of traditional intermediaries may bring windfall gains
(as well as bring welcome and much-needed relief to the producers), this source will increasingly
dry out as competition intensifies and margins come under pressure a few years down the line.
What would set the survivors apart from those who are forced to sell out or go belly-up will be
differentiators like location, value-added services (convenience), private labels and customer
loyalty programs other than price. The last, a result of retailer-manufacturer tie-ups, state-of-the-

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art supply chain infrastructure, global sourcing and scale will be a key factor. And, if experience
in other markets is anything to go by, an uncanny ability to read shifting trends.

1.1.4. Retail formats in India

Hyper marts /supermarkets: large self-servicing outlets offering products from a variety of
categories.

 Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.

 Departmental stores: are general retail merchandisers offering quality products and
services.

 Convenience stores: are located in residential areas with slightly higher prices goods due
to the convenience offered.

 Shopping malls: the biggest form of retail in India, malls offers customers a mix of all
types of products and services including entertainment and food under a single roof.

 E-trailers: are retailers providing online buying and selling of products and services.

 Discount stores: these are factory outlets that give discount on the MRP.

1.1.5.Challenges facing Indian retail industry

 The tax structure in India favors small business

 Lack of adequate infrastructure facilities

 High cost of real estate

 Dissimilarity in consumer groups

 Restrictions in Foreign Direct Investment

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  Shortage of retail study options

 Shortage of trained manpower

 Low retail management skill

The retail industry in India is currently growing at a great pace and is expected to go up to
US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year
2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has
also gone up and is also expected to go up further in the future. In the last four year, the
consumer spending in India climbed up to 75%. As a result, the India retail industry is expected
to grow further in the future days. By the year 2013, the organized sector is also expected to
grow at a CAGR of 40%.

1.1.6.Categories of Indian Retailers:-

Corporate Houses

Tata’s: Tata Trent

 RPG group: Food World, Health and Glow etc.

 ITC: Wills Life Style
 Rahaja group: (Shoppers’ Stop), DLF (DT cinemas).
 Nike, Rbk. Zodiac
 Multi-brand outlets
 Vijay Sales, Vivek etc.
 Manufacturers/ Exporters
 Pantaloons, Bata, Weekender

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1.1.7. Classifying Indian Retailers:

1. Modern Format Retailers

 Supermarkets (food World)

 Hypermarkets (Big Bazaar)
 Department Stores (shoppers Stop)
 Specialty Chains (Ikeas)
 Company Owned Company Operated

2. Traditional Format Retailers

 Karana’s: traditional Mom and Pop Stores

 Kiosks
 Street Market
 Exclusive /Multiple Brand Outlets

3. Hypermarket

 Big Bazaar
 Giants
 Shoprite
 Star

4. Department

 Lifestyle
 Pantaloons
 Pyramids
 Shoppers Stop
 Trent

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 5. Entertainment

 Fame Ad labs
 Fun Republic
 Inbox
 PVR

1.2 Company 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 logistic.

Led by its flagship enterprise, Pantaloons 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), Pantaloons 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.

The groups speciality retail formats include supermarket chain – Food Bazaar, sportswear
retailer - Planet Sports, electronics retailer – rezone, home improvement chain - Home Town and

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rural retail chain, Adair among others.

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 General, the group’s insurance venture in
partnership with Italy’s General 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.

The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based
listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and
Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods
the group operates around 100 restaurants and food courts through brands like Bombay Blues,
Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.

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.’

The group also operates India’s leading rural retailing chain, Adhere that is present in over 65
locations in rural India. Adhere, an agaric-service cum rural retail initiative, provides a complete
solution provider for the Indian farmer.

In 2007, Pantaloons Retail was awarded the International Retailer of the Year by the US-based
National Retail Federation (NRF) and the Emerging Market Retailer of the Year at the World
Retail Congress held in Barcelona.

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1.2.1.Corporate Statements:-

1.2.1.1.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, it 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 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 create success stories.

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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.

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 Rewrite Rules, retain Values

1.2.1.2. Vision

“Future Group shall deliver Everything, Everywhere, Every time for Every Indian consumer in
the most profitable manner.”

1.2.1.3. 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 segment- for classes and for masses.

We shall infuse Indian brand with confidence and renewed ambition.

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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.

1.2.1.4. Core Values

Indianan’s: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct.

Introspection: Leading to purposeful thinking.

Openness: to be open and respective to new ideas, knowledge and information.

Valuing and nurturing relationship: 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.

1.2.2. Board of Directors

Mr. Kishore Biyani, Managing Director

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 Kishore Biyani is the Managing Director of Pantaloons Retail (India) Limited and the Group
Chief Executive Officer of Future Group.

Mr. Gopikishan Biyani, Whole time Director

Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in
the textile business.

Mr. Rakesh Biyani, Whole time Director

Rakesh Biyani, is a commerce graduate and has been actively involved in category
management; retail stores operations, IT and exports. He has been instrumental in the
implementation of the various new retail formats.

Mr. Vijay Biyani, Whole time Director

Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail
industry and has been actively involved in the financial, audit and corporate governance
related issues within the company.

Mr. Vijay Kumar Chopra, Independent Director

V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by

profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking
career spans over 31 years and he has served senior management positions in Central Bank of
India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.

1.2.3.Company Timeline:-

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 Major Milestones

1997 Company incorporated as Manz Wear Private Limited. Launch of

Pantaloons trouser, India’s first formal trouser brand.
1998 Launch of BARE, the Indian jeans brand.
1999 Initial public offer (IPO) was made in the month of May.
2001 The Pantaloon Shoppe – exclusive menswear store in franchisee
format launched across the nation. The company starts the
distribution of branded garments through multi-brand retail outlets
across the nation.
2005 John Miller – Formal shirt brand launched.
2007 Company enters modern retail with the launch of the first 8000
square feet store, Pantaloons in Kolkata.
2008 Three Big Bazaar stores launched within a span of 22 days in
Kolkata, Bangalore and Hyderabad.
2010 Food Bazaar, the supermarket chain is launched.
2012 Central - India’s first seamless mall is launched in Bangalore.
2014 Group moves beyond retail, acquires stakes in Galaxy
Entertainment, Indus League Clothing and Planet Retail.

Sets up India’s first real estate investment fund Kshitij to build a

chain of shopping malls.
2015 Future Capital Holdings, the company’s financial is formed to
manage over $1.5 billion in real estate, private equity and retail
infrastructure funds. Plans forays into retailing of consumer
finance products.

Home Town, a home building and improvement products retail

chain is launched along with consumer durables format, Ozone
and furniture chain, Furniture Bazaar.

Future Group enters into joint venture agreements to launch

insurance products with Italian insurance major, Generally.

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 Forms joint ventures with US office stationery retailer, Staples.
2016 Future Group crosses $1 billion turnover mark.

Specialized companies in retail media, logistics, IPR and brand

development and retail-led technology services become
operational.

Pantaloon Retail wins the International Retailer of the Year at US-

based National Retail Federation convention in New York and
Emerging Retailer of the Year award at the World Retail Congress
held in Barcelona.

Futurebazaar.com becomes India’s most popular shopping portal.

1.2.4Big Bazaar India’s Real Retail Story

Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a
unique milestone in the History of World retail- by being the first hypermarket format in the
globe to rollout fastest 101 stores in a short span of seven years.

Big bazaar’s journey began in October 2001, when the young first generation entrepreneur
Kishore Biyani opened The country’s first hypermarket retail outlet in Kolkata [Then
Calcutta] .In the same month, Two more stores were added – one each in Hyderabad and
Mumbai, thus starting on a successful sojourn which began the chapter of organized retailing in
India.

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 Speaking on this momentous occasion and remembering the days of conceptualizing the
hypermarket idea Mr. Kishore Biyani said, ‘’We initially decided to name the format as ‘’
Bazaar’’ because we had designed the store keeping the Indian mandi style in mind . since the
size of the hypermarket was big than an average mandi, the thought came to name it as ‘’ Big
Bazaar . However we had breezed on the punch line ‘’ Is Se Sasta Aur Accha kahin Nahi’’ much
before we met the creative agency to design the final logo of Big Bazaar’.’

Though, Big Bazaar was started purely as a fashion format including apparel cosmetics,
accessory and merchandise, the First food bazaar format was added as shop-In shop within Big
bazaar in the year 2002. today, Big Bazaar, with its wide range of products and service offering,
reflects the aspirations of millions of Indians.

The journey of Big Bazaar can be divided into two phases –one pre and the other post January
26th, 2005 when the company rewrote the retail chapter in India, with the introduction of a never
–before sales campaign Sasbe Sasta Din’’ In just one day , almost the whole of India descended
at various Big Bazaar stores In the country to shop at their favorite shopping destination.

Further, what followed was the time and again rewriting of the Indian Retail experience
wherein understanding of the Indian consumers reflected in the products and services offered,
creating innovative deals, expanding in the tier II and tier III towns, tying up with branded
merchandise to offer exclusive products and services to its customers.

Big Bazaar is present today in 59 cities and occupying over 5 million sq. ft. retail space and
driving over 110 million footfalls into its stores. The format is expecting the number of footfall
in the stores to increase by over 140 million by this financial year . Over the years, Mr. Biyani
for his vision and leadership, and Big Bazaar for its unique proposition to its customers’, have
received every prestigious consumer awards both nationally and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, “what is important in our
journey is not the number of stores, but the customers’ faith in us. It’s the India and the Indians,
which have helped us, reach this feat in such a short time span and today our country is creating
a history in the word organized retail.

Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early
2001 adds, “Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India
and the Indianans. We believed in growing with the society, participating and celebrating all
regional and local community festivals, giving customers preferences above everything else.”

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Every Big Bazaar is a small family by its own and the head of the family – Karta- is the store
manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of the
consumer’s insight, has inculcated the habit of observing, understanding customers, in every
employee of the group.

Future Group is confident of the Indian Retail Story. The group has not slowed down its
expansion plans despite the fiscal woes in the economy present today. Future Group plans to
have 300 stores and is expecting revenues of Rs 13,000 crore by year 2011.

1.2.5About Big Bazaar

Type : Hypermarket type

Founded : 2001

Industry : Retail

Product : Department store

MD & CEO: Mr. Kishore Biyani

Parent : Future Group

Website : www.bigbazaar.com

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 Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in operations. It
is a subsidiary of Pantaloons Retail India Ltd, Future Group, offers a wide range of products
including clothing, footwear, electronic appliances, groceries and kitchen utensils. You can also
buy branded stuff from Reebok, Nike and Puma here. 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.

The word hypermarket is derived from the French word hypermarket, which is a combination of
a supermarket and department store.

The stores occupy an area which ranges from anywhere between 80000 to 220000 sq. ft. and
offer a variety of food products like clothes, jewelers, hardware, sports equipment, books, CDs,
DVDs, TVs, electrical equipment and computers etc.

Hypermarkets are today synonymous with one stop shopping. The cheapest prices will
normally be found in these stores. Across their world, hypermarkets are usually part of a retail
park, along with other shops, cafeterias and restaurants. A key element of differentiation between
the hypermarket and the other retail formats is that they typically have destination locations. The
hypermarkets are designed to attract customers from a significantly large area with their low
price offers, unique range and offers. It is the largest form of organized retailing today. It is an
ideal shopping experience with an amalgamation of product, service and entertainment all under
of a common roof.

The company has been able to leverage on its multi-formats-multi-brand stores, secure prime
locations at the best possible prices and command a strong bargaining power with suppliers,
which provide it an edge over its competitors.

Customers come in Big Bazaar for purchasing, entertainment and pacing here and there.

It gives many facility to the customers like; Helpline, Baggage Counter, Parking, Exchange etc.
big Bazaar trying to provide customer with 3V’s

Value

Variety

Volume

Big Bazaar has different categories; such as

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Food Bazaar

Apparels

General Merchandise:- At Big Bazaar, you will definitely get the best products at the best prices-
that’s what it guarantees. With the ever increasing array of private labels, it has opened the doors
into the world of fashion and general merchandise including home garnishing, utensils, crockery,
cutlery, sports goods and much more at prices that surprise us. Here we talk about the department
stores, because Big Bazaar based on the departments.

2.1 Literature review

“Those marketing activities other than personal selling, advertising, and publicity that
stimulate consumer purchasing and dealer effectiveness, such as display, shows, demonstrations,
expositions, and various other non-current selling
efforts, not in ordinary routine.(Philip Kilter)

“Sales promotion consists of a diverse collection of incentive tools, mostly short-term,

designed to stimulate quicker and/or greater purchase of particular products/services by
consumers or traders.(Robert C. and Scott A)

“Sales promotion includes the short-term incentives offered to middlemen, salesmen,

and/or consumers. Sales promotion implies a wide variety of

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promotional activities. In the current marketing practices, the role of sales promotion has
increased tremendously. Companies spare and spend millions of rupees to arrest consumer
attention toward products and to arouse purchase interest. Sales
promotional efforts also improve firm’s competitive position”(S Jaideep.)

“ The marketing activities , other than personal selling, advertising and publicity that
stimulate consumer purchasing and dealer effectiveness, such as ---displays, shows, and
exhibitions, demonstration and various new- recurrent selling efforts not in ordinary routine”.
(According to Ameeican Marketing Association)

Sales promotion includes non-routine selling efforts (incentives) for temporary period of
time to maintain or increase sales during particular time interval. It refers to short term
incentives, which are designed to encourage the buyers to make immediate purchase of a product
or services.

2.2. About the topic

2.2.1Meaning
Promotion is a marketing force that provides extra incentive for short term sale. Promotion plays
an important role with advertisements and selling efforts.

2.2.2The role mechanics of promotion

Promotion are an extremely valuable tool for the marketing of goods .like all other tools,
promotion can make a valuable contribution to marketing.

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2.2.3Promotion function
The function of promotion is so accelerate action started by other marketing activities Promotion
acts as a catalyst to accelerate action, primarily on the part of the consumer. it supplements but is
not a substitute for advertising and selling efforts.

Promotions accelerate action by changing the price - value relationship of the brand.

Every product has an established value in the minds of consumer. This is what the consumer is
normally willing expend (in money) for what he gets or thinks be gets when he buys the product.

Promotion changes this price - value relationship to the point where the individual is stimulated
to take a desired. It does this is most as is y lowering the or by interesting the value of the
product or both.

2.2.4When to use promotion

The need for promotion varies because.

(1)A brands quality is inferior to competition.

(2)A brands advertising is not as persuasive as competitive copy.

(3)A new brand is being introduced.

2.2.5Types of Promotion

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Promotion includes all activities designed to inform, persuade and influence people when they
are making the decision to buy. Promotion is made up of:

2.2.5.1. Advertising
• Non-personal communication transmitted through mass media

2.2.5.2. Publicity
• Free promotion through news stories in newsletters, newspapers, magazines and television

2.2.5.3. Sales Promotion

• all forms of communication not found in advertising and personal selling, including direct mail,
coupons, volume discounts, sampling, rebates, demonstrations, exhibits, sweepstakes, trade
allowances, samples and point-of purchase displays In designing a promotional plan, clearly
spell out:

• Which objectives to use. It is possible to have more than one objective, but it is recommended
that a company target its audience or run the risk of losing focus.

• What to say

• Who to say it to

• Criteria used to measure success

2.2.5.4. Suggestions for Inexpensive Promotion

Some inexpensive, appropriate and effective methods of promotion for the new food processor
include advertising through:

• Personal selling

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• Product demonstrations

• Direct mail

• Business cards

• Yellow Page listing

• Seminars

• Newsletters

• Contests

• Flyers

• Statement stuffers

• Window banners

• Greeting cards

• Sports team sponsor

• Home parties

• Ethnic services languages spoken of course, one of the best free methods of promotion is good
“word of mouth."

2.2.5.5. Promotion Objectives

The promotion objectives need to be clearly stated and measurable. They must be compatible
with the objectives of the company, as well as the competitive and marketing strategies.
Objectives vary for different products and different situations .For example, producers must
promote differently to brokers than to wholesalers. When promoting to a broker, the producer
must promote what he/she wishes the broker to present to the wholesaler. When promoting to a
wholesaler, the producer simply wants the wholesaler to purchase the product. There are five

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general promotional objectives to choose from. The five types of objectives for promotional
activities are1:

• To provide information

• To increase demand

• To differentiate the product

• To accentuate the value of the product

• To stabilize sales

Promotional Strategy

Once the producer has reviewed all the possible promotional tools, he/she must devise a
promotional strategy. A promotional strategy should address the following issues:

• What is the goal of the promotion?

• What types of promotion should be used?

• What effect should the promotion have on the customer?

• Which promotion is working?

• Which promotion is not working?

• What are the costs of the promotion compared to the benefits?

2.2.6Promotional Tools
A marketer must do the following while planning and sending communications to a target
audience:

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1. Identify the Audience Individuals, groups, special publics or the general public .Intermediaries
vs. Consumer

2. Identify the Stage of Product Life Cycle

*.Introductory Inform Publicity/Advertising/Sales force (interim.)/Sales promotion (free

samples)

*.Growth Persuade Differentiate from competitors offering*.Maturity Remind Reminder

advertising, Sales promotion (coupons)

*.Decline Cut budget

3. Product Characteristics

*.Complexity how much information must be communicated. The more complex the message,
the greater the need to use personal selling.

*.Risk Greater risk, greater need for personal selling

4. Stages of Buying Decisional many cases the final response sought is purchase, but purchase is
the result of long process of consumer decision making. Need to know where the target audience
now stands (in the process), and what state they need to be moved to.

Adoption Process

*.Not Aware--Advertising/Publicity

*.Aware--no knowledge Advertising/Publicity

*.Interest--how do they feel? Personal Selling/Sales Promotion/Advertising

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*.Evaluation--should they try? Sales promotion/personal selling*.Trial--test drive/sales
promotion

*.Adoption--do they purchase?

Reminder/reinforce—advertising Communication programs goal must lead consumers to take

the final step.

5. Channel Strategies-Push Vs. Pull Policy

*.Push-promotes product only to the next institutions down the marketing channel. Stresses
personal selling, can use sales promotions and advertising used in conjunction.

*.Pull-promotes directly to consumers, intention is to create a strong consumer demand,

primarily advertising and sales promotion. Since consumers are persuaded to seek products in
retail stores, retailers will in turn go to wholesalers etc. (use channels overhead)

2.2.7. Promotions role in the life cycle of a brand

Promotion's role in the life cycle a different degree of promotional emphasis is required.

New product: A new product can usually profit from substantial promotion support if the product
the advertising distribution and price are right.

The promotion can truly perform its function of accelerating trail and purchase of a brand whole
value has not yet been fully established in the minds of all consumers .good advertising on a new
brand will persuade many consumer. Although likely to provide every logical prospect to take

26
immediate action. Through advertising does not quickly move to action required an extra
incentive such as free sample or coupon or some other device that value of the brand or lowers
its price, to the point where the prospect decides to buy it. If the product is of good quality,
promotion thus helps so establish its value quickly in the minds of more people.

Growing Brands: There are indications incident that many new brands (but not all) reach their
share-of-market peak within six months to a year after the completion of their introduction. This
leads to the conclusion that a bread of Paver product and advertising copy superiority would be
well advised to meet maximum trial during the introductory period by spending heavy in the
advertising media any on the promotional device that are most effective in reaching the brand's
best long term prospective consumers investment at the highest practicable level in effective
advert and promotion during the introduction stage, there for by quickly achieving a high level
can established a business that is less valuable to competition and that returns higher level of
profit in the following years.

2.2.8. MAJOR TYPES OF CUSTOMER PROMOTIONS

1. Sampling: Distribution of free special or regular size package to Consumer

2. Price packs: Offers to Consumer of saving off the regular price of a product flagged on the
label ex: A reduced price packs.

3. Free trails: inviting customer for free trails of production without case.

3.1. Objectives of the Study:

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 - To understand the promotional tools of big bazaar
- To find out the factors affecting promotion tools.
- To determine various parameter to collect information through questionnaire of
consumer.
- The scope of my study is to observe the degree of excellence of the promotional tools as
well as the technique adopted by Big -Bazaar

RESEARCH is a ‘careful investigation or inquiry especially through search for new facts in
any branch of knowledge’.

3.2. METHODOLOGY OF STUDY:

Introduction:

This chapter deals with the methodology adopted in conducting the study. The chapter is
organized as follows; research design, sources of data, population and sampling, research
instrument (data collection technique), administration of instrument and analysis of data.

The project is a systematic presentation consisting of the problem, collected facts of data,
analyzed facts and proposed conclusions in form of recommendations. The data has been
collected from both the sources primary and secondary sources.

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3.2.1. Research Design

The research was based on assessing promotional tools. The design was exploratory study which
used closed observation in analyzing promotional tools.

The study was based on the use of questionnaires. These approaches were used because they
were satisfactory tools for collecting data for the sample population to investigate the topic under
study.

A research design is the arrangement of the condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.

A research design is the specification of methods and procedure for acquiring the information
needed to structure or to solve problems. It is the overall operation pattern or framework of the
project that stipulates what information is to be collected from which source and be what
procedures.

 What is study about?

 What is study being made?

 Where will the study be carried out?

 What type of data is required?

 Where can the required data be found?

 What will be the sample design?

 Technique of data collection.

 How will data be analyzed?

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3.2.2 Sources of Data

Both primary and secondary source of data were used in conducting the research.

3.2.2.1 Primary Sources

In getting primary data there are several approaches available to gathering data. In order to
collect reliable and valid information, the researcher goes to the market place and collect data
from different customer of big bazar. The method used in collecting the primary data was
questionnaire.

Questionnaires

The purpose of using questionnaire was to identify and assess the affect the promotional tools. A
set of questionnaire was prepared with open – ended questions.

3.2.3.2. Secondary Sources

The study also made use of secondary data in collecting information. The sources of the
secondary data include books, internet search, articles, and journals among others. This helped to
identify how others have defined and measured key concepts, the data sources that of others used
and this helped to discover how this research project is related to other studies.

3.3.3. Sample Size

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A sample size of 109 was chosen from the market. This was based on the promotional tools and
to ensure that the sampled was representative enough to draw conclusion through pie chart.

3.3.4. Sampling Techniques

The convenience sampling technique was used to select respondents from the market.

3.3.5. Data Collection Instrument

The researcher used questionnaire. The researcher prepared the questionnaires to be responded
by the customer. The questions were designed to make the purpose of the study successful after
the results have been ascertained. This instrument gave expected information about the customer
behavior.

3.3.6. Administration of Instruments

Copies of the questionnaire were distributed to customer at market place.

3.3.7.Data Analysis

The collected data were statistically analyzed, using the pie-chart and tables. Representations like
tables and charts were used to ensure easy and quick interpretation of data. Responses were
expressed in percentages. Data from the completed questionnaire were checked for consistency.

31
The items were grouped based on the responses given by the respondent. This method was used
because it is the best instrument to identify, compare, describe and reach a conclusion.

Analysis 1:- How frequently do you visit big bazaar?

 Once in a week
 Once in 15 days
 Once in a month
 Once in 2-3 month

TABLE-1

S no. Option No. of respondents Percentage (%)

1 Once in a week 21 20
2 Once in 15 days 14 13.33
3 Once in a month 37 33.33
4 Once in 2-3 month 37 33.33
TOTAL 109 100

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INTERPRETATION: 20% of respondents visit big bazaar once in a week, 13.33 respondents
visit once in 15 days, 33.33 respondents are visit once in a month and 33.33 respondents visit
once in 2-3 month.

Analysis 2:- Which product do you purchase more often in big bazaar?

 Groceries
 Electronic goods
 Apparels

TABLE-2

S no. Option No. of respondents Percentage (%)

1 Groceries 65 60
2 Electronic goods 22 20
3 Apparels 22 20
TOTAL 109 100

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INTERPRETATION: 60% of respondents are purchase Groceries items in big bazaar, 20%
respondents purchase Electronics goods and 20% respondents are purchase Apparels.

Analysis 3:- Why do you make purchase of product from big bazaar?

 Low price
 Better quality
 Verity of products
 Brands

TABLE-3

S no. Option No. of respondents Percentage (%)

1 Low price 25 23.33
2 Better quality 25 23.33

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3 Verity of product 54 50
4 Brands 5 3.33
TOTAL 109 100

INTERPRETATION: 23.33% of respondents are purchase of product for low price, 23.33%
respondents purchase for Better quality, 50% respondents are purchase for Verity of product, and
3.33% purchase for Brands.

Analysis 4:- How is the store space in big bazaar for moving around the product?

 Its free space

 Not free space
 Small space
 Congested

TABLE-4

S no. Option No. of respondents Percentage (%)

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1 Its free space 62 56.66
2 Not free space 11 10
3 Small space 21 20
4 Congested 15 13.33
TOTAL 109 100

INTERPRETATION: 56.66% of respondents are store space its free space,10% respondents
store space for not free space, 20% respondents are store space for small space, and 13,33% store
space for congested.

Analysis 5:- Will big bazaar reminding & intimating their store discount and price to all
customers in store?

A- Yes clearly intimating

B- No clearly intimating
C- No intimating at all
TABLE-5

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S no. Option No. of respondents Percentage (%)
1 Yes clearly intimating 83 76.66
2 No clearly intimating 11 10
3 No intimating at all 15 13.33
TOTAL 109 100

INTERPRETATION: 76.66% of respondents are discount of yes clearly intimating,10%

respondents discount for no clearly intimating, and 13.33% discount for no intimating at all.

Analysis 6:- Will big bazaar offer any special discount on price?

 Yes season wise service

 No special offers

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TABLE-6

S no. Option No. of respondents Percentage (%)

1 Yes season wise 87 80
service
2 No special offers 22 20
TOTAL 109 100

INTERPRETATION: 80% of respondents are any special offers for yes season wise service,
20% respondents are any special offers.

Analysis 7:- Are you waiting for your long time at the billing section at big bazaar?

 Yes
 No

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TABLE-7

S no. Option No. of respondents Percentage (%)

1 Yes 87 80
2 No 20 20
TOTAL 109 100

INTERPRETATION: 20% of respondents are waiting for your long time yes, 80% respondents
are waiting for your long time no.

Analysis 8:- What are you intentions to re-enter the store?

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  Low price
 Customer services
 Ambience
 Product quality & availability

TABLE-8

S no. Option No. of respondents Percentage (%)

1 Low price 28 26.66
2 Customer services 4 3.33
3 Ambience 15 13.33
4 Product quality & 62 56.66
availability
TOTAL 109 100

INTERPRETATION: - 26.66% of respondents for low price, 3.33% of respondents for

customers services 13.33% for ambience and 56.66 of respondents for product quality &
availability.

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Analysis 9:- Which source made you to buy product from big bazaar?

 Newspaper
 FM Radio
 TV
 Friends

TABLE-9

S no. Option No. of respondents Percentage (%)

1 Newspaper 25 23.33
2 FM Radio 58 53.33
3 TV 4 3.33
4 Friends 22 20
TOTAL 109 100

INTERPRETATION: - 23.33% respondent are get know about the big –bazar from
newspaper, 53.33 % respondent are get know about the big –bazar from FM Radio, 3.33% %
respondent are get know about the big –bazar from TV and 20% respondent are get know about
the Big-Bazar from friends .

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Analysis 10:- If they provide discount offer what are they?

 Buy 1 Get 1
 50% off,40% off,60% off
 Buy 1 Get 2
 Other discount

TABLE-10

S no. Option No. of respondents Percentage (%)

1 Buy 1 Get 1 62 56.66
2 50% off,40% off,60% 11 10
off
3 Buy 1 Get 2 21 20
4 Other discount 15 13.33
TOTAL 109 100

INTERPRETATION: If Big-Bazar provide discount offer then 56.66% respondent are

choosing Buy 1 Get 1 free 10, % respondent are choosing 50% off,40% off,60% off, 20%

42
respondent are choosing Buy 1 Get 2 free and 13.33% % respondent are choosing others
discount offers

5.1 Finding

 Newspaper was the most effective mode for communication followed by boarding’s and
TV advertisements.

 Promotional offers are noticed and beard by the customers during their shopping.

 33.33% of the customers visit Big Bazaar once in a week either on Wednesday or
weekends, followed by customers visiting once in a month and as and when required.

 23.33% customers purchase of low price products from Big Bazaar.

 Customers preferred clothing followed by Groceries, electronics items and Apparels.

 56.66% of the customers providing discount for Buy 1 Get 1 free.

 Customers found quality at Big Bazaar good as compared to other retail stores.

 Customers feel product range good at Big Bazaar.

 Promotional offers are good compared to other retail stores as per the customer.

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5.2 Suggestions

 16% of the surveyed customers were not aware of promotional offers so the company should
ensure that maximums customers know about promotional offers visiting Big Bazaar and
there should make aware of offers to general public.

 The company should concentrate more on sales and marketing department so that more and
more products can be sold out.

 Advertisements should be the best method to advertise the products and popular among the
public

 Cheaper products should be introduced by the company so that it can reach the middle class
public.

 Some customers are disappointed because of short period of promotional offers as they visit
Big Bazaar offer the offer period is over such customers should be convinced that similar that
similar offers would be declared soon.

 34% of the customers are not attracted to promotional offers because of short range of
electronic items and some doubt the quality of the product on which promotional offers are
declared the company should take note of this.
 Cheaper products should be introduced by the company so that it can reach the middle class
public.

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  The company should stress much on its plans and sell the products according to the customer
needs.

 The duration of the discount offers must be increased so that more number of customers can
avail the benefit.

 Most of the customer prefer Groceries 60% and electronic goods 20% the company has to
attract the customer towards and electronic items and Apparels.

CONCLUSIONS

This presents the summary of the study and survey done on big bazar for effectiveness of
promotion tools. The conclusion is drawn from the study and survey of the company regarding
the promotion tools. Most of the customers are satisfied with the services and offers provided by
them.

This study suggests that big bazar should improve their promotional strategies and should
try and provide better services to their customers by giving

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BIBLOGRAPHY

BOOKS :-
- K.P Mishra(1992), Principle of promotional tools & techniques , Aditya publishing
house Madras, 1992.
- CHHABRA T.N.(2000), Inroduction Of effectiveness of promotion tools, Dhanpat Rai
and co. (p) Ltd, Delhi, 2000.
- Rohini nilekani(2008) , Marketing Management, New Delhi: Sultan Chand & Sons, 2008
- Subba P.Rao, ”Methods & types of promotion”, 5th edition, Vikas Publishing House
Pvt.Ltd, New Delhi.
- Kotler Philip , “Human Resource Management “, 2nd edition, 2003, Prentice Hall of
India, New Delhi.
- Kothari C.R., “Principle of management”, 2nd edition,2003, Vikas Publishing House Pvt.
Ltd, New Delhi.

WEBSITES :-

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  https://www.scribd.com/mobile/doc/109086703/sales-promotion-activity-in-big-bazaar?
_e_pi_=7%2CPAGE_ID10%2C4736851893

 https://www.ukessays.com/essays/marketing/marketing-strategy-of-big-bazaar-india-
marketing-essay.php?_e_pi_=7%2CPAGE_ID10%2C7729107000

 http://www.marketing91.com/marketing-mix-big-bazaar/

 http://www.projectfever.com/index.php?main_page=product_info&products_id=20

QUESTIONNAIRE

NAME: MOB. NO:

ADDRESS: GENDER: F [ ] M[ ]

AGE:

1. How frequently do you visit big bazar?

A- Once in a week [ ] C- once in a month [ ]
B- Once in 15 days [ ] D- once in 2-3 months [ ]

2. Which product do you purchase more often in big bazar?

A- Groceries [ ] C- apparels [ ]
B- Electronic goods [ ]

3. Why do you make purchase of product from big bazar?

A- Low price [ ] C- variety of goods [ ]

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 B- Better quality [ ] D- brand’s [ ]

4. How is the store space in big bazar for moving around for products?
A- Its free space [ ] C- small space [ ]
B- Not free space [ ] D- congested [ ]

5. Does big bazar keeps reminding & intimating their store discount and price to all customers in
store?
A- Yes clearly intimating [ ] C- no intimation at all [ ]
B- No clear intimation [ ]

6. Does big bazar offer any special discount on price?

A- Yes season wise service [ ] B- no special offers [ ]

7. Do you have to wait for long time at the billing section?

A- Yes [ ] B- no [ ]

8. What is the reason that makes you visit their again?

A- Low price [ ] C- customer’s service [ ]
B- Ambience [ ] D- product quality and availability [ ]

9. How did you get to know about big bazar?

A- 33T.v [ ] C- FM radio [ ]
B- newspaper [ ] D- friends [ ]

10. What are their criteria of providing discount?

A- Buy 1 get 1 free [ ] C- 40%off , 50%off , 60%off [ ]
B- Buy 1 get 2 free [ ] D- other discounts [ ]

48