The Study On Retail Operation of BIGBAZAAR-An Analysis of Employee Satisfaction at Big Bazaar Outlets
The Study On Retail Operation of BIGBAZAAR-An Analysis of Employee Satisfaction at Big Bazaar Outlets
The study on retail operation of BIGBAZAAR- An Analysis of Employee Satisfaction at Big Bazaar outlets.
Submitted to the
DEPARTMENT OF MANAGEMENT STUDIES, SRM UNIVERSITY KATTANKULATHUR CAMPUS TAMILNADU 603 203
CERTIFICATE
This is to certify that the project report entitled A Study on retail operation of Big Bazaar, Royapuram - Chennai , Submitted by Kaushik Podder (Reg. No: 35080244) in partial fulfillment for the final project in awards of Master of Business Administration of SRM University- Kattankulathur, is a bonafide research work carried out under my supervision and guidance and no part of this project has been submitted for any other degree / diploma.
The assistance and help received during the course of the investigation has been fully acknowledged.
Counter Signed Dr. Shanthi Venkatesh M.A., Ph.D. Asst. Professor & Project Guide
Submitted to the Department of Management Studies, SRM UNIVERSITY (Kattankulathur Campus) for the examination held on __________________.
Internal Examiner
External Examiner
DECLARATION
I, Kaushik Podder, Reg. No: 35080244, hereby declare that the project report titled A Study on retail operation of Big Bazaar, Royapuram - Chennai under the supervision and the guidance of Dr.Shanthi Venkatesh, Asst. Professor, Department of Management Studies, SRM UNIVERSITY (Kattankulathur Campus- Chennai), is the result of the original work done by me and to the best of my knowledge, a similar work has not been submitted earlier to any University or any other Institution.
Place : Date :
Kaushik Podder
ACKNOWLEDGEMENT
In the course of this project, I have received help from a number of people. I would like to take this opportunity to thank them all. I am grateful to our College Administration for giving me an opportunity to do this Project.
It is my great pride and privilege to appreciate our respected Dean Dr.Jayashree Suresh and my beloved project guide Dr. Shanthi Venkatesh, Dept. of Business Administration, S.R.M. School of Management, who have motivated and encouraged me with their tireless guidance and support for the successful completion of this project.
I would also extend my heartfelt gratitude to the Manager Mr.Karthik of Big Bazaar, Royapuram Chennai and my Industrial project guide Mr.Surendar of Big Bazaar, Royapuram Chennai, for their support and valuable time spent to make this project a reality. I am also thankful to the employees of Big Bazaar at Royapuram especially Mr.Surendar for his motivation and care throughout the course of this said project. Last but not the least; I would like to thank the almighty and all our faculty members, friends and family for their support and inspiration.
Kaushik Podder
ABSTRACT
Retailing is emerging as a sunrise Industry in India and is presently the largest employer after agriculture. In the year 2004, the size of Indian organized retail industry was Rs.28,000 Crores, which was only 3% of the total retailing market. Retailing in its present form started in the latter half of 20th century in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largest employer segment in USA.
Organized retailing in India is projected to grow at the rate of 25% - 30% p.a. and is estimated to reach an astounding Rs.1,00,000 Crores by 2010. The contribution of organized retail is expected to rise from 3% - 9% by the end of the decade.
The projection for the current year i.e. 2005 is Rs.35,000 Crores. In India, it has been found out that the top 6 cities contribute for 66% of total organized retailing. With the metros already been exploited the focus has now been shifted towards the tier-II cities. The retail boom, 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns.
The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20 25%. In the year 2004, Rs.28,000 Crores organized retail industry had clothing, textiles & fashion accessories as the highest contributor (39%), where as health & beauty had a contribution of 2%. Food & Grocery contributed to 18% whereas Pharma Retail had a contribution of 2%.
Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats, the company operates over 5 million square feet of retail space, has over 450 stores across 40 cities in India and employs over 18,000 people.
CONTENTS
Chapter No 1.1 1.2 1.3 1.4 1.5 1.6 1.6.1 1.6.2 1.6.3 1.6.4 1.7 1.8 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.8.1 2.8.2 2.8.3 2.8.4 2.8.5 2.8.6 Topics CHAPTER I- INTRODUCTION Introduction About Retailing The Important of Retailing The Scenario of Retailing In India Introduction About Big Bazaar Company Profile of Big Bazaar Swot analysis Strength Weaknesses Opportunities Threats Objective of Big Bazaar Mission & Vision of Big Bazaar CHAPTER II RETAIL OPERATION Definition of Retail Operation Why Retail Operation is so Important Objective of the Study Limitation of the Study Scope of the Study Organization Structure Store Structure Functions of Various Departments Customer Service Department Human Resources Department Finance Department Sales Department Marketing Department Logistics Department Page No 1 2 2 3 4-5 6 6 6 6 6 7 8 9 9 9 10 10 10 11 11 11 12 12 11-22 23-24 25
CHAPTER III- RESEARCH METHODOLOGY 3.1 3.1.1 3.1.2 3.2 3.3 Data Collection Method Primary Data Collection Secondary Data Survey Method Sources of Data 26 26 27 27 27
Topics Sampling Methods of sampling Sampling Population Sample size CHAPTER IV - DATA ANALYSIS AND INTERPRETATION LIST OF TABLES Contents How long have you been working for this company My duties and responsibilities are clearly defined Organization provides me better working environment The Senior Management treats employees fairly Paid Fairly for the work I do it the organization. Work timing are comfortable in the organization. How much employees are satisfied with welfare and safety amenities provided in the organization.
Page No 27 27 27 27
Page No 28 29 30 31 32 33 34
4.1.8
How many employees feel secured and satisfied with their job
35
LIST OF CHARTS Chart No 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 Contents How long have you been working for this company My duties and responsibilities are clearly defined Organization provides me better working environment The Senior Management treats employees fairly Paid Fairly for the work I do it the organization Work timing are comfortable in the organization How much employees are satisfied with welfare and safety amenities provided in the organization. 4.1.8 How many employees feel secured and satisfied with their job 4.2 Suggestion Of Big Bazaar 36 35 Page No 28 29 30 31 32 33 34
CHAPTER V- FINDINGS & SUGGESTIONS Chapter No 5.1 5.2 Findings Suggestion Topics Page No 37 38
CHAPTER I
1.1 INTRODUCTION ABOUT RETAILING Retailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. In the year 2004, the size of Indian organized retail industry was Rs 28,000 Crores, which was only 3% of the total retailing market. Retailing in its present form started in the latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largest employer segment in USA. Organized retailing in India is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crores by 2010. The contribution of organized retail is expected to rise from 3% to 9% by the end of the decade. The projection for the current year ie 2005 is Rs 35,000 Crores. In India, it has been found out that the top 6 cities contribute for 66% of total organized retailing. With the metros already been exploited, the focus has now been shifted towards the tier-II cities**. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. In the year 2004, Rs 28,000 Crores organized retail industry had Clothing, Textiles & fashion accessories as the highest contributor (39%), where as health & beauty had a contribution of 2%. Food & Grocery contributed to 18% whereas Pharma Retail had a contribution of 2%. Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats, the company operates over 5 million square feet of retail space, has over 450 stores across 40 cities in India and employs over 18,000 people. In such a big industry which runs on basis of customer, the customer satisfaction is more important. In this project we have given emphasis on customer satisfaction in retail Industry and have chosen Big Bazaar as the Retail store where we will study the whole scenario of customer satisfaction in a Retail Industry.
[1]
1.2 THE IMPORTANT OF RETAILING Retailing has a tremendous impact on the economy. It involves high annual sales and Employment Retailers participate in the sorting process by collecting and assortment of goods and services from a wide variety of suppliers and offering them for sale. They provide information to consumers through advertising, display and signs and sales personnel. Retailing in a way is the final stage in marketing channels for consumer products. Retailers provide the vital link between the producers and ultimate consumers.
1.3. THE SCENARIO OF RETAILING IN INDIA Retailing is the most active and attractive sector of last decade while the retailing industry itself has been present since ages in our country it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post liberalization, increase in product variety and increase in economies of scale. The retails sales are at the highest point in history and new technologies are improving retail productivity.
[2]
1.4 INTRODUCTION ABOUT BIG BAZAAR Big Bazaar is Indian personification of retail. Its like an Indian bazaar or mandi or mela, the environment created by traders to give shoppers a sense of moment. Its personality is of being an entity away from fancy or pretty and being authentically "no-frills". Kishore Biyani never hired any foreign consultant for Big Bazaar which is evident from Indian-specific personality of the brand. The brands personality is self-explanatory by its tag-line only. This statement places Big Bazaar at the top of customers mind. It reflects that entrepreneurship and simplicity are the essence of character of Big Bazaar. To use predatory pricing is not in the personality of Big Bazaar, they never sell goods below the price they have purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian family's favorite store. Big Bazaar symbolizes modern retail, the business which isnt looked up to in our country, is now in the eyes of many multi-national biggies. Big Bazaar has shown a robust growth in recent years. Big Bazaar, is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd., which in turn is a segment of the Kishore Biyani, regulated Future Group of Companies. Moreover the customer friendly ambiance and the organized retailing of products also make Big Bazaar one of the successful retail companies in India. Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazaar with over 80 outlets in different parts of India is present in both the metro cities as well as in the small towns. This large format store comprise of almost everything required by people from different income groups. It varies from clothing and accessories for all genders like men, women and children, playthings, stationary and toys, footwear, plastics, home utility products, cosmetics, crockery, home textiles, luggage gift items, other novelties, and also food products and grocery. The added advantage for the customers shopping in Big Bazaar is that there are all time discounts and promotional offers going on in the Big Bazaar on its salable products.
[3]
1.5 COMPANY PROFILE OF BIG BAZAAR Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people. The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com 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 companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company operates 120 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. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection, selling home furniture products and eZone
[4]
focussed on catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
Future Group Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. The groups speciality retail formats include supermarket chain - Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain Home Town and rural retail chain - Aadhaar, among others. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the groups core value of Indianness. The groups corporate credo is, Rewrite rules, Retain values. Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in the most profitable manner.
[5]
1.6 SWOT ANALYSIS: 1.6.1Strength Better understanding of customer helping the company to serve them better. Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience. Benefit of early entry into the retail industry. Diversified business operating all over India in various retail formats. Ability to get products from customers at discounted price due to the scale of business. 1.6.2 Weaknesses High cost of operation due to large fixed costs. Very thin margin High attrition rate of employee 1.6.3 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. 1.6.4. Threats High business risk involved Lot of competitors coming up to tap the market potential. Margin of business reducing all the time.
[6]