RATAN GLOBAL BUSINESS SCHOOL

Post Graduate Diploma in Management.

(Approved by AICTE, Ministry of HRD,GOVT Of INDIA)

Autonomous College.

Pattabhi Nagar, Ravelly, NH-7, Toopran Mandal, Great Hyderabad A.P

A PROJECT REPORT ON

HOW TO INCREASE OWN BRAND SALES

SUBMITTED TO: SUBMITTTED BY:

DECLARATION

I A.Venkata Chandrakanth hereby declare that the project entitled “How to Increase

Own Brand Sales at BIG BAZAAR.” has been personally done by me under the

guidance of MR.Jasvinder Singh in partial fulfillment of Post Graduation

Program- during academic year-2010-2011. All the data represented in this project is true &

correct to the best of my knowledge & belief. This work has not been submitted

for any other degree / diploma exam elsewhere.

DATE: -

I take this opportunity to express my acknowledgment and deep sense of gratitude

to the individuals for rendering valuable assistance and gratitude to me.

Their inputs have played a vital role in success of this project.

I express my deep sense of gratitude to MR.NOVA, Zonal HR for giving me the

opportunity to carry out my project work in this esteem organization.

I express my sincere thanks to my project guide MR.JASVINDER SINGH, ASM

for his generous support, constant direction and mentoring at all stages of training.

I am also indebted to DR. B. RATAN REDDY, faculty guide who was a real

source of help and assistance to me during the course of project.

I take this opportunity to thank all the employees who spared their precious time

to provide me with valuable inputs for project without which it would have not

been possible.

I firmly believe that there is always a scope of improvement I welcome any

suggestions for future enriching the quality of this report.

Thanking you, A.VENKATA CHANDRAKANTH

ACKNOWLEDGEMENT

PREFACE

Training is business organization in fuse among student a sense of critical

analysis of the real managerial situation to which they are exposed. This gins them

an opportunity to apply their conceptual theoretical & imaginative skills in a real

life situations and to evaluate the results there of.

BIG BAZAAR is a name renowned name in Retail. BIG BAZAAR is now a brand

image in private retail sector. While my one month project, I was at BIG BAZAAR

to find potential of BIG BAZAAR on the presence of other retail Stores.

Practical training through experts of BIG BAZAAR gave me actual input to fulfill

my real aim.

This report is the written account of what I learnt experienced during my training.

I wish those going through it will not only find it real but also get useful

information.

EXEC UTI VE SU MM ARY

Private label brands are all set to spoil the party for the other brands since recent

times. Top multi brand retailers including shoppers stop, Lifestyle, Reliance trends,

Hypercity and the Future value retail ltd plan to aggressively push own brands at par

with established ones and the new ones.

Big Bazaar intends to promote it’s private labels as other brands and license it to other

retailers where PLB contribute 20-25% of total sales. In this scenario PLB strategy is

being the most preferred one to any retailer to survive in the industry.

This research was started by finding out benefits and possibilities in introducing

private labels against other brands. For this, Big Bazaar India’s biggest hyper market

chain gave me the platform. Right from understanding various contributions made by

private brands to various departments. And their margins, which were very much

attractive. Finally through various data collection tools, data was analyzed for proper

understanding of the problem.

Few well known private brands of Big Bazaar keep showing great result and even

competing with the other brands. On this fact plate, recommendations were designed

to suit the applicability.

Promoting private brands as similar to other brands will give positive results in terms of

sales. As per the final figures from this show that Big Bazaar can introduce more

private brands in the future.

Slogan: Isse sasta aur accha kahin nahi!

7. BIBLIOGRAPHY

Contents

1.1. Introduction

1.1Future Group and its different formats

1.2Big-Bazaar

2.Group vision and Mission

3.Startegy to increase own brand sales

4.Key findings

5.Sugestions & Recomendations

6.Conclusion

RETAIL INDUSTRY IN INDIA

The retail scenario is one of the fastest growing industries in India over the last couple

of years. The Indian retail industry is the third largest in the world. Comprising

of organized and unorganized sectors, though initially, the retail industry in India

was mostly unorganized consists of small and medium grocery store, medicine stores,

subzi mandi, kirana stores, paan shops etc. however with the change of tastes and

preferences of the consumers, the industry is getting more popular these days and

getting organized as well. More than 90% of retailing in India fall into the unorganized

sector, the organized sector is largely concentrated in big cities. Organized retail in

India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35,

000crore in 2004-05 to Rs109, 000 crore ($24 billion) by 2010.

Retail for mats in Ind ia:

Format Description The Value Proposition

Branded Stores Exclusive showrooms either owned orfranchised out by a manufacturer.

Complete range availablefor a given brand, certified product quality

SpecialtyStores

Focus on a specific consumer need, carrymostof the brands available

Greater choice to theconsumer,comparison between brands

is possible

DepartmentStores

Large stores having a wide variety ofproducts,organized into different departments such asclothing, house wares, furniture, appliances,toys, etc.

One stop shop catering tovaried/consumer needs

Supermarkets Extremely large self-service retail outlets One stop shop catering tovariedconsumer needs

DiscountStores

Stores offering discounts on the retailpricethrough selling high volumes and reaping economies of scale

Low Prices

Hypermarket Larger than a supermarket, sometimeswith awarehouse appearance, generally located inquieter parts of the city

Low prices, vast choiceavailableincluding services such as

cafeterias

ConvenienceStores

Small self-service formats located incrowded urban areas

Convenient location andextendedOperating hours.

ShoppingMalls

An enclosure having different formats ofin storeretailers, all under one roof.

Variety of shops available

to each other.

Ma jor Retai lers i n Indi a

Future Gro u p : Pantaloon 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.

Tata G r oup: 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 lakh sq. ft retail space across the country.

RPG Gro u p: 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‟.

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 crores by 2010.

AV Birla G r oup: AV Birla Group has a strong presence in Indian apparel

retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, and Peter

England are quite popular. It's also investing in other segments of retail. It will invest

Rs. 8000-9000 crores by 2010.

Challenge s facin g Ind ian retail i ndust ry :

The tax structure in India favors small retail business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

The Futu re:

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. 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 rate of 40%.

According to Government of India estimate the retail sector is likely to grow

to a value of Rs. 2,00,000 crore (US$45 billion) and could yield 10 to

15 million retail jobs in the coming five years; currently this industry

employs 8% of the working population in India which is the second largest

employment provider after agriculture.

India continues to be among the most attractive countries for global

retailers. According to the Department of Industrial Policy and Promotion,

approximately US$ 47.43 million was the amount of Foreign Direct

Investment (FDI) inflow as on September 2009, in single-brand retail

trading.

More than 80% of the retail sector in the country is concentrated in the large cities.

A study reveals that among the more than 20 locations, for organized retail in

India, Mumbai was found to be the most preferred location followed closely by

Bangalore in the second position.

Future Tre nds:

Lifestyle International, a division of Landmark Group, plans to have more than

50 stores across India by 2012–13.

Shoppers Stop has plans to invest Rs250 crore to open 15 new

supermarkets in the coming three years.

Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million this fiscal to

add up to existing 2.4 million sq ft retail space. PRIL intends to set up

155 Big Bazaar stores by 2014, raising its total network to 275 stores.

Timex India will open another 52 stores by March 2011 at an investment of US$

1.3 million taking its total store count to 120. In the first six months of the current

fiscal ending September 30, 2009, the company has recorded a

net profit of US$ 1.2 million.

Future Group is India’s leading business group that caters to the entire Indian consumption space.

Led by Mr. Kishore Biyani, the Future Group operates through six verticals: operates through six

verticals: Retail, Capital, Brands, Space, Media and Logistics.

Apart from Pantaloon Retail, the group’s presence in the retail space is complemented by group

companies, Indus League Clothing, which owns leading apparel brands like Indigo Nation, Scullers

and Urban Yoga, and Galaxy Entertainment Limited that operates Bolwing Co, Sports Bar and Brew

Bar ,

The group’s joint venture partners include French retailer ETAM group, US-based stationary products

retailer, Staples and UK-based Lee Cooper. Group Company, Planet Retail, owns and operates the

franchisee of international brands like Marks & Spencer, Next, Debenhams and Guess in India. The

group’s Indian joint venture partners include, Manipal Healthcare, Talwalkar’s, Blue Foods and

Liberty Shoes.

Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer credit.

It manages assets worth over $1 billion that are being invested in developing retail real estate and

consumer-related brands and hotels. The group has launched a consumer credit and financial

supermarket format, Future Money and soon plans to offer insurance products through a joint venture

with Italian insurance major, Generali.

The group is currently developing over 50 malls and consumption centers across the country and

has formed a joint venture company focusing on mall management with Singapore-based CapitaLand,

one of Asia’s largest property companies Future Group’s vision is to, “deliver Everything, Everywhere,

Every time to Every Indian Consumer in the most profitable manner.” The group considers ‘Indian-

ness’ as a core value and its corporate credo is - Rewrite rules, Retain values.

"COMPANY INTRODUCTION"

Future Group

“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.

The motto of Future Group, to not to wait for the Future to unfold itself but create future scenarios in

the consumer space and facilitate consumption because consumption is development. Thereby, it will

effect socio-economic development for their customers, employees, shareholders, associates and

partners. Their customers will not just get what they need, but also get them where, how and when

they need. They are not just posting satisfactory results, they are writing success stories.

Future Group conglomerate

Future Group has six business pillars:

Future RetailAll the retail lines of business like food fashion and home will come under this vertical.

Future BrandCustodian of all the present and future brands that are either developed or acquired by the

group.Future Space

Will have a presence in property and mall management.

Future Capital

Will provide consumer credit and micro finance services, including marketing of MFs

insurance policies, and management of real estate and consumer fund.

Future Media

Will focus on revenue generation through effective selling of retail media spaces.

Future Logistic

To drive efficiencies across businesses via better storage and distribution.

GROUP VISION:

Future Group shall deliver Everything, Everywhere, Every time

for Every Indian Consumer in the most profitable manner.

GROUP MISSION:

F uture Group shares the vision and belief that their customers and stakeholders shall be served only by

creating and executing future scenarios in the consumption space leading to economic development.

They will be the trendsetters in evolving delivery formats, creating retail realty, making consumption

affordable for all customer segments - for classes and for masses.

They shall infuse Indian brands with confidence and renewed ambition.

They shall be efficient, cost- conscious and committed to quality in whatever they do.

They shall ensure that their positive attitude, sincerity, humility and united determination shall be the

driving force to make them successful.

CORE VALUES: Indian ness: Confidence in themselves.

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

Respect and Humility: To respect every individual and be humble in their conduct.

Introspection: Leading to purposeful thinking.

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

Valuing and Nurturing Relationships: To build long-term relationships.

Simplicity and Positivity: Simplicity and positivity in their thought, business and action.

Adaptability: To be flexible and adaptable, to meet challenges.

F low: To respect and understand the universal laws of nature.

AWARDS:

CNBC Awaaz Consumer Awards 2009

Most Preferred Multi Product Chain - Big Bazaar

Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar.

Images Fashion Forum 2009

Most Admired Fashion Group Of The Year - Future Group

Most Admired Private Label - Pantaloons, the lifestyle format

Critic’s Choice For Pioneering Effort In Retail Concept Creation – Central.

Coca-Cola Golden Spoon Awards 2009

Most Admired Food & Grocery Retailer Of The Year

Most Admired Food Court

Most Admired Food Professional

Indian Retail Forum Awards 2008

Most Admired Retail Company of the year - Future Group

Retail Face of the Year - Kishore Biyani

Best Retailer Of The Year ( Hypermarket) - Big Bazaar

Future Group was awarded the Most Admired Retail Company of the year by the Indian Retail

Forum at a glittering ceremony organised in Mumbai. Mr Kishore Biyani also won Retail Face

of the Year.

India Retail Forum (IRF) is a platform for intellectual insights and information exchange for

the retail business in the Indian subcontinent. The forum presents the business of retail in the

region to a global audience, with the express aim of facilitating understanding about and

encouraging investment in this massive marketplace.

Big Bazaar, the value format of Future Group bagged the Best Retailer Of The Year

( Hypermarket).

The INDIASTAR Award 2008

Food Bazaar: Best Packaging Innovation

Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation in India, for

its private label brand Fresh And Pure Chakki Atta.

Food Bazaar: Best Packaging Innovation

With this award, Pantaloon Retail (India) Limited becomes the first Indian Retailer to

win the prestigious INDIASTAR Award.

Retail Asia Pacific 500 Top Awards 2008

Gold Winner - Top Retailer 2008 Asia Pacific

Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform that

appraise, raises and recognizes the development and growth of retailing throughout the

Asia Pacific region.

Coca-Cola Golden Spoon Awards 2008

Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani.

Most Admired Food & Grocery Retailer of the Year – Supermarkets: Food Bazaar.

Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar.

Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across

Food, Beverages & Grocery: Future Group.

Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar.

The Coca-Cola Golden Spoon Awards 2008, were given away for the first time as a

culmination of the ‘Food Forum India 2008’ - a two day convention which saw the

participation of leading brands, retailers & retail support organizations from across the

globe. The awards were presented to honour enterprise, innovation and achievement in the

food retailing business as a benchmark of excellence.

BOARD OF DIRECTORS

Mr. Kishore Biyani, Managing Director

Mr. Gopikishan Biyani, Whole Time Director

Mr. Rakesh Biyani, CEO – Retail

Ved Prakash Arya, Independent Director

Mr. Shailesh Haribhakti, Independent Director

Mr. S.Doreswamy, Independent Director

Dr. D.O.Koshy, Independent Director

Ms. Anju Poddar, Independent Director

Ms.Bala Deshpande, Independent Director

Mr.Anil Harish, Independent Director

Different Formats of Future Group

Format -1

Pantaloon Retail (India) Limited, is India's leading retail company with presence across

multiple lines of businesses. The company owns and manages multiple retail formats

that cater to a wide cross-section of the Indian society and is able to capture almost the

entire consumption basket of the Indian consumer. Headquartered in Mumbai

(Bombay), the company operates through 5 million square feet of retail space, has over

331 stores across 40 cities in India and employs over 17,000 people. The company

registered a turnover of Rs. 2,019 crore for FY 2005-06.

Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail

chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that

combines the look and feel of Indian bazaars, with aspects of modern retail, like choice,

convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a first

of its kind seamless mall located in the heart of major Indian cities, followed this. Some

of its other formats include, Collection i (home improvement products), E-Zone

(consumer electronics), Depot (books, music, gifts and stationary), all (fashion apparel for

plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has

recently launched its etailing venture, future bazaar.com

Background: Founded in 1987 as a garment manufacturing company, the company

forayed into modern retail in August 1997 with the launch of its first department store,

Pantaloons in Kolkata.

Listing: Pantaloon Retail is a listed company on the Bombay Stock Exchange (BSE,

Scrip Code: 523574) and National Stock Exchange (NSE, Symbol: PANTALOONR).

Format-2:

CENTRAL

Central, the showcase seamless mall concept is one of the more popular offerings in the

lifestyle segment that celebrates shopping in India. During the year, Central capitalized on

its positioning of being a destination where citizens can just come and unwind, whether

it’s for shopping for a wide range of national and international brands, enjoying their

favorite cuisine at the multiple specialty restaurants and food courts or watching the latest

movie releases at the in-house multiplexes.

The most reputed brands are showcased in Central. It is also emerging as the destination

of first choice for new fashion brands in India. Central assures better visibility, instant

recognition, good quality and commercially viable space on the basis of the optimum

space utilization concept, taking the brand closer to the consumer. With brands within

Central competing against the best brands in the country, it also allows benchmarking for

these brands.

The coming year will also witness many new concepts being introduced at all

Central malls. Some of these concepts include communications (MPort and Gen M),

electronics (E-Zone), furniture and accents (Collection I), fitness equipments and wellness

zones, books, music, gifts & stationery (Depot) and fine dining restaurants etc. Some of

the new alliances that the group has entered into, like Etam, Lee Cooper and Gini & Jony

will also share space within all Central malls.

Format-3

PLANET RETAIL

A young and emerging India is also eager to experience international brands. We sensed

this opportunity some time back and have built a strong portfolio of international brands

through our strategic partnership with Planet Retail Holdings Pvt. Ltd. The alliance with

Planet Retail provides access to international fashion retail chains like Marks & Spencer,

with 9 stores at present; Guess the US brand that has 12 retail stores currently, and the

Spanish brand Women’s Secret which is retailed through 2 outlets. Planet Retail also has a

multi-brand international sportswear format under the brand ‘Planet Sports’. The company

is the sole licensee for sportswear brands such as Converse, Spalding and the Athlete’s

Foot the venture has also launched other formats like Sports Warehouse, Accessorize,

Monsoon, Next, and Debenhams.

Format-4

Depot

This largely untapped unorganized market for

books and music with very few players, throws up

an enormous opportunity; something that prompted Pantaloon to make its foray through

its own format, Depot in 2005-06. Located as stand-alone stores and within most

Pantaloons, Central and Big Bazaar retail formats, Depot’s vision is to be a one-stop shop

where customers will find an extensive range of books, multimedia, toys, gifts and

stationery, thereby transforming the way books, music, multimedia and gifts are bought,

sold and perceived in India. This would be made possible by the creation of a portfolio of

exclusive titles, an Indian experience while shopping and connecting with the mind and

soul through different languages, ideas and tunes.

Books, Music and Gifts

Reading as a habit is ingrained into the Indian psyche from time immemorial. However, it

is being increasingly associated with a select few. The company believes that existing

formats in the segment offer an intimidating environment that alienates the masses. The

company has therefore taken this initiative of launching a chain of books, music and gifts

stores that will once again democratize the reading habit in the country. The company

believes that with 1.2 billion people, the habit of reading can become a strong business

proposition. Depot seeks to work with communities in and around the area where it is

located and hopes to attract the entire family to spend quality time together. It is focusing

on the introduction of old classics and books in regional languages with an objective to

make these affordable to a mass audience.

Format-5

Fashion Station

Fashion Station, which represents the

company’s offering of the latest in fashion for the masses, has met with reasonable

success since its launch in 2004-05. These thematic stores that offer the most

contemporary in fashion and accessories, is another of the value added propositions that

Pantaloon seeks to offer. The aspirational mass of consumers who are bombarded with

the latest in style through media penetration, hedonism and peer emulation, need an

outlet that meets their requirements of trendy, latest and yet affordable fashion. Fashion

Station is positioned to meet their requirements, and thereby take fashion to the masses.

Format-6

Home Improvement

Some of the key factors contributing to

growth in the housing sector in India are

increasing purchasing power increasing number of nuclear families, softer interest rates,

22

easy availability of finance schemes and an overall real estate boom across the country.

There is a shortage of more than 33 million dwelling units. With the average age of a

homebuyer reducing from 50 to sub-30, 4 million new homes are being bought annually.

With every house, a dream is planted to decorate the house. And this creates a demand for

furniture, electronics and home improvement products. Modern retail is ideally placed to

capture a significant chunk of consumer spend made by a new homebuyer. The market for

home décor and improvement is largely unorganized and hence a new homeowner has to

literally visit several markets and stores for meeting his home needs. This was the

opportunity that Pantaloon perceived and the reason why it entered the Rs. 90,000 crore

home solutions market in 2004-05. With its presence in the modern retail and consumer

space, this new concept was an opportunity for the company to leverage its experience

and offer the consumer an alternative solution to canalize his consumption needs.

In the Rs.25000 crore consumer durable industry,

which is growing at nearly 6 per cent every year, EZone

has already emerged as a force to reckon with. This lifestyle retail format offers a

never experienced before environment for shopping for the best in national and

international consumer electronic and durables brands. It retails products ranging from

music systems to laptops, from the latest plasma television sets to DVD players, from

washing machines to air-conditioners to name a few. Typically in excess of 12,000

square feet in size, E-Zones are primarily stand-alone concepts, but are also present

within the company’s Central malls

Format- 7

COMMUNICATION

With over 2 billion phone users worldwide, mobility has now become an intrinsic part of

our personal and working lives. Mobile operators, cell phone manufacturers, content

publishers, wireless application service providers and many other key players in the

mobile industry are all working to carve out the best position in the value chain, to find

the right place from where they can best serve both their own and their customers’ needs.

En route towards 3 billion phones worldwide, a major shift would occur in consumer

interest from carriage to content and from a verbal to a growing visual world. With more

mobile cameras sold in 2005 than digital cameras, with more music/video players in

mobiles than iPods, with more messaging reach than PCs, convergence with the online

world is now very much a reality. In India, the story is no different. With over 150 million

mobile subscribers expected by 2008, there exists a huge potential for all players in the

mobility space. Most of the mobile phones in India are sold through ‘mom and pop

‘stores, and there is a huge grey market that exists.

MBazaar

Pantaloon realized this largely untapped opportunity and intended to be a dominant

modern retail player in the mobile space. This is what prompted the company to set up a

new division ConvergeM in 2005-06 to identify, develop and bring to the market, mobile

products and solutions tailor-made to suit the consumers requirements at competitive

prices. ConvergeM adopts a unique approach of establishing, multi-brand, multi-category,

multi-format and comprehensive solution outlets to lead and exponentially expand the

market. As in most other formats, ConvergeM too operates in the lifestyle and value

platforms. Its value offering, MBazaar is a format that addresses the value seeker’s quest

for possessing latest technologies at lowest prices.

MBazaar is located within most Big Bazaar stores as well as stand-alone options. This

250-500 square feet offering retails both GSM and CDMA and landline phones, while

providing options of M Pods, downloads to name a few. The mission for Converge M is

to emerge as the largest organized retailer in the mobile space, while leading innovation

in mobile applications and being the most favored destination for all communication

needs.

Format-8

Restaurant, Leisure & Entertainment

Increasing urbanization and rising disposable incomes are

characteristics that are commonin emerging economies like India. Estimates suggest a growth

in urban consumption at

potentially 20% per annum in nominal terms for at least the next 5-7 year period.

The total number of middle to high income households is projected to reach 105 million

by 2010, thereby adding a large number of people to the consuming class. These

demographic numbers represent a young nation, which has an increased propensity to

spend in restaurants and other food service sectors, fuelling growth in the Leisure,

Restaurants and Entertainment industries.

The company is using the collaborative approach to strengthen its position in the leisure

and entertainment space. This has helped the company build a complete bouquet of

brands that span from food courts to fine dining. As the shift from high street to malls

continues, the restaurant business is expected to increase significantly. For Indians,

shopping comes hand in hand with eating and celebrating and these formats are being

developed keeping this in mind. F123 is designed as a entertainment zone that can be

present in every mall and this business is expected

to gain traction in the coming year.

F123, the entertainment zone offering is a leisure solution for all age groups. The focus

would be to offer a wide range of gaming options from bowling and pool, interactive

video games to bumper cars. The entire concept is built around international thinking and

gaming knowledge, with Indian pricing. For the year ending 2005-06, there were three

F123’s operational, with the first one opening in November 2005.

Format-9

Star and Sitara

Delivery Formats Star & Sitara

In the beauty space, the company’s offering, Star & Sitara aims at pampering the beauty

conscious consumer by offering the latest beauty products, ranging from cosmetics, skin

and hair care, aromatherapy and fragrances. Star & Sitara is set to be part of most Big

Bazaar and every Beauty and Health Mall, which the company is in the process of setting

up. There were 6 Star & Sitara operational as on June 2006.

Star & Sitara Beauty Salon

Star & Sitara, the beauty services offering, doubles as a unique parlor and salon for men

and women. Customers will be treated to the best quality hair and skin services at

unbelievable prices. One such store was operational as on the 30th June 2006.

Beauty & Health Mall

Pantaloon, will be the first retailer in India to

offer health, beauty and wellness products and

services. This will be led through its Beauty &

Health Mall format. Typically, of around 25,000 square feet each, these centers will

include pharmacies and beauty product zones and a host of other offerings such as health

cafes, gymnasium, healthcare services, retailing fitness equipments, yoga centers and

books on health and fitness etc. The company plans to open at least three Health &

Beauty Malls during the year 2006-07 in Bangalore, Ahmedabad and Mumbai.

Format-1 0

E-TAILING

The emergence of a mass base of net savvy Indians is realty today. Access to Internet is

no longer limited to a small segment of young, male urban people. Cutting across age

groups, gender, geography and socio-economic backgrounds, Indians are taking to the net

like fish to water. It is estimated that there are at least 25 million Indians who access the

Internet on a regular basis. Falling prices of personal computers and laptops coupled with

increasing penetration of internet, and broadband services is driving more and more

Indians to the Internet. In fact, Indians are no longer limiting their Internet usage to email

and chatting. Online shopping has finally come of age. As the leading retailer in India,

Pantaloon could ill afford to overlook this emerging segment. There is a sufficiently large

segment of online shoppers whose consumption spends needs to be captured. It’s with

this belief that the company started exploring this area. Pantaloon perceives its online

business as yet another delivery format that can potentially reach out to 25 million

customers. Future Bazaar, has modeled itself on a unique complete retailer platform.

Etailing requires extensive sourcing capabilities, warehousing capacity, buying trends

understanding & most importantly a robust & efficient logistic backend. Future Bazaar

leverages the offline brand equity and brick & mortar presence of the group via multi

channel integration to benefit on economy of scales, economy of scope in promotion &

distribution and utilizing the offline learning into online & vice-versa to grow at a faster

pace. As a new delivery format, Future Bazaar can benefit from the learning’s and

expertise gathered in existing formats as well as boost sales at these formats through the

online sale of gift vouchers

Format-11

Liberty Shoes

With fashion being the focus of the company, the intent is to provide a complete wardrobe

experience to the consumer that includes not just apparel but fashion accessories also.

Accessories speak a lot about the personality of the individual and are a reflection of the

attitude of the wearer. Footwear is one such category in the fashion sphere that truly

embodies the phrase-best foot forward.

Footwear as a category has been present in most of the company’s Big Bazaar; Fashion

Station, Pantaloons and Central retail formats. During the year under review, Pantaloon

explored the opportunity to get into branded footwear, by partnering with the well established

footwear company Liberty Shoes. The joint venture named Foot Mart Retail

(India) Limited would launch branded footwear retail chains in the country under the

‘Shoe Factory’ brand. These stores would be located within most retail spaces that

Pantaloon would be present in, and as stand alone stores across the country. Shoe Factory

stores would be a destination for men, women and children of all ages, who can choose

from a wide variety of quality footwear at various price points, suiting their budgets. The

venture launched its first store in Ahmedabad on 5th May 2006. Spread over nearly

13,000 square feet, this value format houses a wide range of the latest and trendiest foot

wear and accessories for all occasions, at unbeatable prices.

Format-12

GINI & JONY

The company recognizes that the organized kids wear category has shown signs of

sizeable growth over the past couple of years. In order to expand and consolidate its

presence in this category, the company entered into a joint venture with the country’s

leading kids wear retailer, Gini & Jony Apparels Pvt. Ltd. This equal joint venture named

GJ Future Fashions Limited, apart from gaining additional visibility within all existing

and upcoming Pantaloons stores and Central malls will set up a chain of exclusive kids

wear stores throughout the country, addressing fashion needs of children in all age

groups, from 5 to 15 years. This initiative witnessed the opening of two stand-alone stores

during the year 2005-06 in Indore and Ahmedabad.

Format-13

BIG BAZAAR

Isse sasta aur accha kahin nahi!

Big Bazaar has clearly emerged as the favorite shopping destination for millions of its

consumers, across the country, it’s success is a true testament to the emotional bonding it

has established with the Indian consumer, on account of its value offerings, aspirational

appeal and service levels.

Shop till you drop! Big Bazaar has democratized shopping in India and is so much more

than a hypermarket. Here, you will find over 170,000 products under one roof that cater to

every need of a family, making Big Bazaar India’s favorite shopping destination.

At Big Bazaar, you will get the best products at the best prices from apparel to general

merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods, car

accessories, books and music, computer accessories and many, many more. Big Bazaar is

the destination where you get products available at prices lower than the MRP, setting a

new level of standard in price, convenience and quality.

If you are a fashion conscious buyer who wants great clothes at great prices, Big Bazaar is

the place to be. Leveraging on the company’s inherent strength of fashion, Big Bazaar has

created a strong value-for-money proposition for its customers. This highlights the

uniqueness of Big Bazaar as compared to traditional hypermarkets, which principally

revolve around food, groceries and general merchandise.

Boasting of an impressive array of private labels, Big Bazaar is continually striving to

provide customers with a ‘complete’ look. So be it men’s wear, women’s wear, kids wear,

sportswear or party wear, Big Bazaar fashions has it all!

Format-14

Food Bazaar

Across India, food habits vary according to community, customs and geography. Food

Bazaar, through its multiple outlets addresses this. At the same time it offers best quality

products at wholesale prices to a wide cross section of the India population. Food Bazaar

effectively blends the look, touch and feels of the Indian bazaar with the choice,

convenience and hygiene that modern retail provides. The food and grocery division of

the company was launched in 2002-03 and has grown to 47 stores nationwide at the end

of the current financial year. Most stores are located within Big Bazaar, Central and

Pantaloons and act as strong footfall generators. There are separate stand-alone Food

Bazaars as well. The business contributed just fewer than 50 per cent of value retailing,

and about 20 per cent to the company’s turnover during 2005-06. Food Bazaar offers a

variety of daily consumption items, which include staples, soaps and detergents, oils,

cereals and biscuits. On the product category side, the primary segregation is done on the

basis of staples, fresh produce, branded foods and home and personal care products.

Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail

(India) Limited. This entity has been created keeping in mind the growth and the

current size of the company‟s value retail business, led by its format divisions, Big

Bazaar and Food Bazaar.

The company operates 146 Big Bazaar stores, 170 Food Bazaar stores, among

other formats, in over 70 cities across the country, covering an operational retail

space of over 6 million square feet. As a focussed entity driving the growth of the

group's value retail business, Future Value Retail Limited will continue to deliver

more value to its customers, supply partners, stakeholders and communities across

the country and shape the growth of modern retail in India.

B i g B a z a a r:

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 the beginning. Big Bazaar plans to add much

more to complete your shopping experience.

BIG BAZAAR RTC CROSS ROAD HYDERABAD opened in January 5th 2006.

Currently this store is employing 150 full time and 25 Part Time Employees. The first shift

employee arrives at 10Am in the morning and leaves at 7.30 Pm, while the second shift

employee report at 12.30 in the afternoon and leave at time of store closing (10Pm).

At Big Bazaar store can definitely give the best product at better price. It sells

variety of merchandising at affordable rates; the price which it claims is lowest in the city.

Usually, the items are clubbed together for offer to customers and it also offers weekend as

well as monthly discount.

At BIG BAZAAR RTC CROSS ROAD one can find a variety of Departments as

shown below.

FOOD BAZAAR.

PUC.

HOME FASHION.

MENS FASHION.

LADIES FASHION.

KIDS FASHION.

LUGGAGE.

ELECTRONICS.

FURNITURE.

Strengths :

Better understanding of customers. Vast range of products under one roof . Benefit of early entry into the retail industry.

Weaknesses :

High cost of operation. Very thin margin. High attrition rate of employee.

Opportunities :

Lot of potential in the rural market.

Can enter into production of various products due to its in depth understanding of customers’ tastes and preferences.

Can expand the business in smaller cities as there is a lot of

opportunity.

Threats :

High business risk involved. Lot of competitors coming up to tap the market potential.

Margin of business reducing all the time.

COMPETITORS:

Big Bazaar faces competition from others retailers of similar product and services. This includes stand alone stores in the organized and unorganized sectors, as well as other chains of stores including department stores. Big Bazaar focus on offering customers a vast variety of products and services

catering to there to diver’s requirements and needs. It is because of this and the service and ambience that Big Bazaar offers, that Big Bazaar believes Big Bazaar have been able to create a differentiation in the mind of the customer vis-à-vis our competitors where similar products and brands are available.

Competitors For Big Bazaar:

1.Food World.

2.Reliance Fresh.

3.More.

4.Others Store.

Objectives Of The Company:

1. To carry on the business of manufacturing, buying, selling, exchanging, altering,

importing, exporting, distributing or otherwise dealing with readymade garments and

hosiery made of cotton, silk, rayon, wool, nylon, man-made fabrics, polyester, canvas,

jute, leather, any other fabric coated with any chemical or not, or other preparation and

other fabric.

2. To carry on the business of manufacturing, processing, dyeing, otherwise dealing in

yarns and textiles made of cotton, silk, rayon’s, wool, nylon, man-made fibers,

polyesters, canvas or any other substances.

3. To carry on trade or retail business in Indian through retail formats and including but

not limited to hyper markets, super markets, mega stores/discount stores, cash and carry

, departmental stores, shoppers plaza, direct to home, phone order and mail order,

catalogue, through internets and other forms and multi level channels for all products a

services, dealing in all kinds of goods, materials and items including but not limited to

food and provisions, household goods, consumer durables, jewelers, home

improvement products, footwear’s, luggage’s, books & stationary, health care and

beauty products, toys and music, computers and accessories, telecom products, agric

input products, furniture and furnishings, automobiles and accessories, acquiring and

running food, service and entertainment centre’s including but not limited to

multiplexes, cinemas, gaming centre, amusement parks, restaurants and food courts and

acquiring of land or building on lease or freehold or any commercial or industrial or

residential building for running and management of retail business and to acquire flat.

Organization Structure Of Big Bazaar: Store manager

Asst store manager

Dept manager

Asst dept, manager.

Customer service dept

Visual merchandising

Human resource manager Sales

manager

Info

I ntro ductio n and theo reti ca l ba ckg ro und of the study

Growth of organized retail chain in India has also led to growth of private label

brands in India. Indian economy has seen average growth rate of 6.8 percent since

1994, putting purchasing power in the hands of customer. Though initial growth of

private label brands in India has been limited to certain categories like grocery and

apparel, it is expected to expand into many other categories as well. The CSO

estimated the economic growth of India for the last quarter of 2005-2006 to be 9.3

percent, marginally below 9.9 percent registered for China in the same period. For

the same, given scope for high growth, management consultancy A. T. Kearney

has placed India on top of its Global Retail Development Index in 2006. Currently,

organized retail in India is estimated to have only 3 percent share. In the total retail

market, it is expected to grow at 25-30 percent. Thus, with the growth of

organized retail in India, the private label brands are also expected to grow as

experienced in other developed countries. The growth of private label brands in

India presents an interesting opportunity for the retailer to understand the

Team leader

Team member

Asst Dm. Administration

Maintenance

House keeping

Marketing

Security

Cashiers

motivations of consumers behind choice of private label brands.

M e a n i ng o f P r iv a te L a b e l B r a nd s :

A private-label product is a manufactured good that a retailer purchases from a

supplier, with the intention of renaming, repackaging and selling it under the

distributor‟s own brand name. Depending on the agreement between a

manufacturer and a retailer, the manufacturer sometimes handles the packaging

and labeling for the retailer for an additional charge. Otherwise, the retailer is

responsible for the process of dressing up the product as its own. Thus, it can be

said that Brands owned not by a manufacturer or producer but by a retailer or

supplier who gets its goods made by a contract manufacturer under its own label

are called private label brands. Manufacturers use either their own name, that of a

middleman, or a combination of both when they are marketing their products.

Private labeling occurs when middlemen, usually large retailers or wholesalers,

develop their own brand. Building a following from scratch through private-label

products, especially in rough economic times, is challenging because smaller

retailers do not have the marketing budget compared to their larger-sized

competition.

E v ol u t i o n of p r i v a te l a b e l b r a n d s :

The definition of private label branding has evolved significantly over time. Some

would argue the term “private label” is a misnomer of great proportions. There is

no question that the words “private label” acknowledges the birth, history and

existence of generic and store brands. Yet, the term does not adequately capture

the extent to which private label has progressed. Today's retail marketers are

managing their proprietary brands with the same combination of care and

innovation as manufacturers of national brands. In recent years, retailers have been

liberating themselves from the traditional definition of private label marketing as

being the poor relative of national brand consumer goods, and, in doing so,

opening up huge opportunities for private label branding. These opportunities

require the adoption of a different set of marketing and branding practices to

support and propel the retailer‟s business and marketing ideals for its private label

brands.

The key to successful marketing management for today‟s retailers is to understand

the contribution and role of their proprietary or “own” brands in the long-term

business strategy and marketing mix of the retail store and consider both the

supply side and the demand side of the equation. Effective category management

can enable retailers to solidify and optimize supply chain relationships. Strategic

brand management goes hand in hand with these endeavors to establish

sustainable points of difference in each aisle and segment within the store.

It also spurs decisions about how to appropriately define the retailer‟s “own”

brand portfolio in order to galvanize consumers to connect and reconnect with its

franchise in a compelling manner.

Benef i ts o f P r iv a te L a b e l B r a nd s :

1) Since manufacturers' (producers') brands have large advertising

expenditures built into their cost, a private labeler is able to buy the same

goods at a lower cost and thus sell them at a lower price and/or at a better

profit margin.

2) In addition, private labelers have more control over pricing and are able to

advantageously display their own brands for maximum impact. For

example, a grocery store can quickly reduce the price of its own private-

label brand in order to meet or beat a competitor's price. Or the grocery

store can create a special point-of-purchase advertising display and/or give

its brand predominant shelf space in order to boost sales.

3) Private-label brands are usually priced lower than comparable

4) Manufacturers' brands and therefore appeal to bargain-conscious

consumers. An example of a private-label brand would be a supermarket

product bearing a store label with a product's name. As already mentioned,

retailers like PLBs because of their potential to increase store loyalty, chain

profitability, control over shelf space, bargaining power over

manufacturers.

I ntro ductio n to priva te bra nd stra tegy :

Private brand strategy has become a superior category of management skills

and a basis for establishing customers‟ shopping preference in retail

channels. The marketing channels are facing increasingly fierce

challenges, which include continuous development, new product types,

new category management and new privately own brands that meet

customers‟ diverse demands. With rapid marketing advancement, more

innovative types of retail channels, such as department stores, hypermarkets,

wholesale warehouses, warehouse clubs, shopping malls, shopping centers,

power centers, theme/festival centers and outlet centers are develop and

introduced into the market.

Fig-1 PLB conceptual frame:

Brief view of Big Baz aar’s Prod ucts a nd it’ s ow n brands :

Fashion Dept Food Bazaar GM-Home Gm-fashion

Table-1 (Big bazaar’s products and it’s own brands)

Denims & T-shirts

AFL, DJ & C

Staples PURE &

FRESH Utensils(dreamline) Depot

Fabrics & Cut pieces

AFLFruits & Vegetables Furniture(dreamline,mo

nza)

Luggage

carriers(mil

estone)

Formal wear

KNIGHTHOODReady to cook TT

Electronics

KORYO, SENSUI

Casual wear

DJ & CNon food CM,sach

Party wear

NYXSpecies

Ethnic wear

SPUNKLive kitchen

Accessories

RIA RITU

Under garments

SHYLA

Night wear

SHYLA

Dress material

RIA RITU

Saree SHRISTHI

Foot wear DJ &C,

MERCHANDISE OF OWN BRAND

Private labels are brands owned, merchandised and sold by retailers themselves. These can be

categorized into store brands, store sub-brands &Umbrella brands. They are also called in-store

or own brands. Private labels are unique to a particular retailer and they can be divided into a

number of categories where the retailer’s name is evident on packaging. From apparel,

healthcare products and furnishings to consumer items, they are making their presence felt in a

variety of retail items in the country.

Globally, private labels contribute 17% of retail sales with a growth of 5% per annum.

International retailers like Wal-Mart of USA and Tesco of UK have 40% and 55% own label

brands representation in their stores, respectively. Private label penetration in the United

Kingdom is close to 37 per cent currently, and is forecast to exceed 40 per cent by 2011. In

Germany private label has shot up from 12 per cent of sales to 34 per cent over the last decade.

And apart from the multi-brand retail stores, a category of retailers like Ikea, Toys ‘R’ Us, Zara

has also been created who sell only private label brands.

Growth in India

And now, the role of private labels is gaining significance in the developing markets too. In India

there is a growing trend towards acceptance of private label brands and thus their penetration is

on the rise  especially in the apparel, consumer durables,

home care and FMCG segments. India is still an under-branded country and in each category

there is still a lot of scope for growth, this is where the private label comes in and the story is

looking good so far. For instance, Future Group has already tasted the success with its Tasty

Treat brand which is just behind Frito Lay in the potato chips segment. Its Care Mate in the baby

diaper segment has left behind Huggies in the in-store sales. At Spencers, diapers and agarbattis

sell more than market leaders across the store chain.

Experts comment that when it comes to local tastes and preferences, private label brands have an

advantage over national brands and this reflects in the increasing percentage share of these goods

in Indian retail chains. As the figure 1 shows, among the major Indian players, the degree of

private label penetration is the highest in Trent with 90 per cent, followed by Reliance Retail (80

per cent) & Pantaloon (75 per cent).

Commercial Objectives behind launching Private Labels

There are certain objectives that a retailer has in mind before getting into private label goods.

Figure 2 lists the benefits that a retailer expects from the in-store brands.

Higher Margins

Private label goods are cheaper to produce than branded goods. Besides, due to the lack of

advertising and marketing expenses they provide double advantage to the retailer when it comes

to the profit margins. While majority of branded goods provide margins in the range of 6-12%,

private label goods can offer margins up to 40% . Not only they give a higher margin to the

retailers, private labels have also changed the balance of power between brand manufacturers

and retailers, giving the latter a decided advantage when negotiating terms with the brand

manufacturers. 

Stronger Customer Loyalty

As the private label offerings increase and the quality is assured, a high sense of loyalty is

cultivated among its customer base. This customer loyalty is the result of an affinity with the

retailer brand which implies that the development of private label brands can tangibly enhance

the retailer’s brand itself. So in the long run, the private labels become an important tool for the

retailer to establish its positioning and strategically attract the target customers to its outlet.

Numerous studies have also shown that private label buyers are more store-loyal and not as

easily influenced as brand buyers.

Differentiation

Through private labels, retailers get a chance to bring in unique products in their supply chains

that have not been branded before. So if a retailer can cater to the local tastes and preferences of

the consumers well by top quality private labels then they can differentiate themselves from

other stores and become destination stores. In effect, it’s a win-win situation even for the

producers who get a chance to display their produce.

Freedom with Pricing Strategy

A retailer promoting a private label has the added benefit of greater freedom to play with pricing

strategies, as a result of which these are overall cheaper than brand leaders. For instance, in USA,

some private labels are 25 percent cheaper than leading brands . In addition, since it is an own

private label, the retailer has the freedom to create its own marketing strategy and have more

control over its stock inventory. This command of all the stages that a product goes through,

gives the retailer high flexibility in pricing.

Positioning during economic downturns

The growth of private labels is likely to continue in the current financial environment as cash-

strapped consumers' perception of the products as a cheaper option changes. The price advantage

of private labels leads to the belief that these score in times of economic meltdown, and further

that this newly-acquired market share is maintained even as the recession swings out. Even after

the economy bounces back, consumers will naturally gravitate towards products marked at lower

prices yet offering the same quality, especially where the retail name is a trusted national or

regional player.

Private Label Maturity Curve

The share of private labels is related to the level of retailer sophistication and concentration in

the country. In economies where retail is more consolidated, private label shares are both higher

and expected to grow faster. However, the Indian retail industry is highly fragmented at the

moment and organized retail is in its nascent phase presently with contribution of about 5% to

the whole market . In this stage, the private labels that are launched play mostly the price game

to compete with the branded products. At this stage, most private labels which have acceptance

are at the bottom of the pyramid of retail products. However, as the retailers mature and gain

experience they want to move up the pyramid where realizations are higher. As figure 3 depicts,

over a period of time as the market matures, the retailers shift their focus from price to product

quality which leads them to a stage where they can launch their own brands in the premium

category expecting to capture the brand equity and the customer loyalty built over years of good

service. The consumers too, at this point, have enough trust and confidence to accept premium

products from the retailer.

Implications for Indian Retail Marketers

Identify the needs of your customer base

The private label should provide the required functional as well as emotional attributes and

benefits. Keeping in mind that it already has a price advantage, this ensures that it takes into

account needs that are important to consumers and hence, offers a reliable point of difference

from other category players. By offering a differentiated value proposition, a private label

utilizes the approach that national brands use to arrive at a holistic benefit proposition rather than

the specific positioning they use. This furthers its promise that has been already informed by the

competition, confirming its category membership, but is clearly not a me-too expression. It is

also successful as it demonstrates a commitment to offer consumers multiple choices and

varieties with distinct attributes, benefits and price points.

Leverage the Consumer Connection

A successful private label has the ability to own the consumer connection and has the capacity to

strike a chord with consumers in multiple categories of products. Unlike national brands, private

labels are offered exclusively through a specific retailer and can easily surpass specific

categories because they have a consumer focus rather than a product focus as their brand

foundation. These brands instigate trustworthiness and allegiance from their loyal consumers that

the parent store becomes their conscious and obvious retail source for certain categories.

Moreover, these categories may be the reason that consumers are initially drawn into the store,

but once they get there, the store also has the prospect of encouraging them to spend more on

impulse purchases. Therefore, the private labels not only reinforce enduring loyalty and positive

feelings for the retail brand, they also enable the retailer to capture a more significant share of the

consumers’ heart, wallet, mind space and lifestyle than a national brand.

Communicate at the Point Of Sale

Retailers need to be more cognizant of the significance of the communication with the consumer

at the point of sale. They own the canvas consumers shop on and thus, through store

environments, in-store messaging (like signage), merchandising systems, and packaging as well

as external messaging like circulars, catalogs and advertising in a congruent manner, the retailer

is able to create a lasting impression in-store, at shelf, at the time of purchase and during usage.

Retailers need to make sure that they send out the right message at these interaction points.

Moreover, many of these messages do not require revolutionary change for extended periods of

time, so they perpetuate a persuasive branded voice and don’t require constant investment from

the retailer.

Collaborative category management

Category management is instrumental for a retailer to realize its own-brand goals and aspirations.

To maximize the efficiencies of product flow throughout the distribution system, a retailer must

be aligned with the supplier. The relationship between the retailer and trade should become

increasingly about cooperation and lesser about the retailer negotiating with the manufacturer or

supplier on price. By joining hands, they can strengthen their trade relationships and ensure that

the category as a whole remains profitable and emotionally appealing to the customer resulting in

both private label and branded goods as winners. They can collaborate in understanding and

deciding how to optimize the product lines and Stock Keeping Units (SKUs) that will progress

the category definition as a whole and determine planograms and shelf allocations to rally the

greatest degree of category interest and excitement from consumers.

Manage Brand Architecture the right way

Brand architecture is a critical consideration for private label marketing. Once the brand

proposition solidifies, the brand architecture strategy enables decision makers to promote this

promise at the store level in order to stimulate a sense of familiarity, recognition and trust. Also,

private labels have broader set of aisles than national brands. Because of this, it becomes more

and more important to differentiate its attributes and benefits on an aisle, category and product

basis. So the implication for the retailer is to strike the right balance of similarities and

differences with brand messaging and portfolio offerings.

METHODLOGY

How Big Bazaar grow, and what it does to market its products

Retailing in India has witnessed a huge growth in the recent years.

Retailing in India is gradually inching its way towards becoming the next boom. The

Indian retail industry is largest among all the industries in India, According to the India

Retail Report 2009 compiled by research group “Images F&R Research” rising economic

growth will fuel the growth of industry and it will touch Rs. 18,10,000 crores by 2010. 

Big Bazaar is Indian personification of retail. It’s like an Indian bazaar or mandi or mela.

Big Bazaar, which has become a household name by now, has emerged as one of the

prominent organised retailing player in Indian arena. It has been successful in

establishing a chain of shopping malls in various cities of India, reflecting the look and

feel of Indian bazaars at their modern outlets targeting higher and upper middle class

customers with a strong distribution network. 

Big Bazaar faces a formidable competition from the unorganised sector. Change in

consumer behavior, intensification of competition with the emergence of new players has

made it difficult to achieve the forecasted success. An insight into unorganised retailing

reveals that it enjoys higher margin due to many reasons including low operational cost,

and low taxations.

Being aware of the threats and opportunities present in the Indian retailing, the top

management at Big bazaar planned various strategic alternatives. Big Bazaar has huge

promotion budgets. The biggest idea behind all advertisements is to prompt people to do

bulk shopping. There are two types of promotional strategies of big bazaar. One is the

holistic advertisement which promotes the brand and creates awareness among people.

Other type of promotion is the particular store oriented promotion. There are promotional

efforts even inside the store 

Big Bazaar ensures that no other kirana store / departmental store are offering

considerable discount compared to its own price. This helped it Big Bazaar in being the

"value for money" store. Product mix at Big Bazaar is compared to kirana store. 

7P Analysis of Big Bazaar

• Product: Big Bazaar offers a wide range of products which range from apparels, food, farm

products,furniture, child care, toys, etc. Products of all the major brands are available at Big

Bazaar

• Price: The tag-line is "Is se Sasta aur accha aur kahin nahi". They work on the model of

economics of scale. There pricing objective is to get "Maximum Market Share". 

• Place: Big Bazaar stores are located in 50 cities with 75 outlets. Big Bazaar has presence in

almost all the major Indian cities. 

• Promotion: The various promotion techniques used at Big Bazaar include "Saal ke sabse saste

teen din", Future Card (the card offers 3% discount) Brand Endorsement by M. S. Dhoni,

Exchange Offer - ‘Junk Swap Offer’, Point-of-Purchase Promotions. Advertising has played a

crucial role in building of the brand. Big Bazaar advertisements are seen in print media, TV,

Radio (FM) and road-side bill- boards.

• People: Well-trained and dressed staff, Employees are motivated to think out-of-the-box.

• Process: Multiple counters with trolleys to carry the items purchased. Proper display / posters

of the place like (DAL, SOAP, etc.). 

• Physical Evidence: It deals with the final deliverable or the display of written facts. This

includes the current system and available facilities.

Strategic Decisions Taken to Build the Big Bazaar Brand

Indian customers prefer to purchase grains, grams, etc., after touching them, so it’s better not to

sell in polythene packs. Big Bazaar has counters where you can touch wheat, rice, sugar, etc.,

before purchasing. Advertisements about schemes and offers through local newspapers, radio in

local languages, inspires customer more than the traditional ways. For Indians, shopping is an

entertainment; they come in groups, with families so Big Bazaar offers something for every

section of family. Their newspaper advertisements are present just before launch of any new

scheme. This creates aura about the Big Bazaar brand in the minds of customers. Big Bazaar bill-

boards are displayed on prime locations in various cities as a brand building exercise. They

display the catch-phrases now-a-days. For a retailer, location is one of the most important things.

The strategic decisions to secure spaces before other retailers join in have resulted in creating

early presence in market.

STRATEGY TO INCREASE OWN BRAND SALES

Customers decide daily whether to pay the extra cost for a prettier label and have to make the

choice on whether or not the produce is as good as the branded products they buy.

There are two generic philosophies that come into play when considering whether to buy

supermarket own or well known branded products, one is that you only get what you pay for and

quantity grants quality.

Alternatively, there is the thought of why should you pay about three times the price for a

product with a colourful label and a name everyone recognises

Human mind is a strange thing. It combines the conscious and the unconscious, the rational and

the irrational. People act as the mind asks them to do. If somebody can influence the human

mind he/she can get the desired result. This is very much true in case of branding your company.

Whether you have a small business or a big business, the customers have developed certain ideas

about your company, product or service and this is called brand in a nutshell. The best way of

improving your business is spreading awareness about your brand among the consumers.

It seems that many of the companies have lost sight of the significance of establishing brand

loyalty and it is mainly reflected in the poor quality of their product and inadequate customer

service. So firstly you should improve the quality of your product as well as offer satisfactory

customer service.

Another important factor that contributes a lot in developing brand loyalty is advertisement and

marketing. In present time wherever we look TV ads, banners, hoardings, magazines, billboards

draw our attention and we find some or the other brand is reminding us of our need and

promising to provide us with more than our expectations.

When a customer comes to buy a product a number of factors mold his/her decision of buying a

product of a particular brand. The decisive factors include past experience of quality, price,

word-of-mouth, customer service, brand connotation and so on. Brand loyalty occurs only when

the customer is satisfied.

Brand loyalty can be divided into two broad categories: behavioral brand loyalty and attitudinal

brand loyalty.

Behavioral Brand Loyalty

Behavioral brand loyalty is mainly determined by repeat purchase. If a customer buys your

product over and again it means that the customer is loyal towards your brand. But at times it

might not be true and the customer might be forced to buy your products because of situational

constrains. However customer behavior always reflects his/her perception about a brand.

Depending on a customer's perception a company develops its branding strategy.

Attitudinal Brand Loyalty

Attitudinal brand loyalty should be the ultimate goal of any company. It determines a customer's

favorable attitude towards a brand. It is not only indicated by repeat purchase but much more

than that. If a customer is completely committed to a brand he/she will be indifferent to price

change. They will be ready to pay high for a product when they know that the company offers

value for money. Not only that he/she will also recommend your brand to others when they

realize that your brand actually keeps the promise it makes.

When the customers are committed to your brand they will not only look for their own interest

but also the interest of the brand. So be honest to your customers and don't fool them. You can be

benefited by doing so (e.g. selling a bad product at a high price) for once but you will loose that

customer for ever.

Brand loyalty is an asset for a company.

KEY FIN DING S:

1) Considering Kachiguda demographics and their preference towards

hyper market, Big Bazaar has competitive advantage over other store since

it is the only hyper market in the city.

2) Most of the customers are looking for brand with lower price.

3) Male customers were more brand conscious rather than female, it seems

male fashion private brands need intensive care while entering.

4) Non food department is the area where customers wouldn‟t compromise at

brand, 2nd would be the food department.

5) On the other side foot wear and electronics are the least bothered about

brands.

6) Among five promo mediums that Big Bazaar-Kachiguda follows, Advt in

print or digital is the most effective one.

7) Among the fashion private brands, DJ & C and AFL are well known brands

for the customers.

8) Among the Food Bazaar‟s private brands, Tasty treat and Pure & Fresh are

well known brands for the customers.

9) The brand Koryo is being the preferred one in electronics segment .

10) Customers felt that private brands are more economical and quality

assured.

11) Even the brand conscious customers have shifted towards private brands,

performance of these brands ii quite well interms of quality, lower price

and service.

12) Among fashon private brands, DJ & C is the brand which made higher

customer shift from national brand, like wise we got Tasty treat in Food

Bazaar and Koryo in electronics segment.

13) The non food segment private brand, Sach has least awareness among all

other available private brands in the store.

Sugg es tio ns a nd Reco mmenda tio ns:

1) This is the time to create a positive image of private brands for your

customer which will lead to stronger brand loyalty.

2) We have greater freedom with pricing strategy to create our own marketing

plans, so promos or melas should be private brand centric.

3) Reduce dependence on brand names for sales, other side private brand

needs to be promoted as national brand.

4) As of now better not to introduce more private brands in to the non food

and food segments. Since it is brand sensitive area.

5) Foot wear and electronics is the area where more no of private brands can

be introduced.

6) Advertising in print/digital media is being the best medium for promotions

so this is the place where customers get aware of new brands.

7) Fashion private brands such as Knighthood, Spunk and Matrix, electronics

private Sensui, Food bazaar‟s private brands Sach, caremate and cleanmate

need more promotional activities to be sensed by the customers frequently.

8) DJ & C should concentrate on providing latest models, this was the reason

for DJ & C rejection.

9) As of now, Koryo is best choose for small appliance so this the time to

grab attention towards it.

10) Higher visibility in possible media and proper visual merchandising can

increase the awareness of the brand Sach.

Conclusion

The growth of private labels in the Pantaloon retail industry is inevitable but Big Bazaar

retailers do need to keep a few things in mind. Promotion of own label and allocation of

large shelf space at the expense of well-marketed other brands can depress the overall

size and value of the category while on the other hand, joining hands with them and

following principles of category management can create a win-win situations for both.

Retailers need to realize the importance of consistent brand message and should ensure

that the product quality backs it well. Moreover, when used as an umbrella brand, the

brand portfolio should be managed properly as to avoid any negative impact on the store

brand. To conclude it is quite evident that as the Pantaloon retail industry consolidates

over next decade, retailers will look to differentiate among themselves and private labels

will form a highly significant part of their strategies.

BIBLIOGRAPHY

www.futurebytes.com

www.pantaloon.com

www.retailindia.com

www.google.com