Volume 2, Number 1, January-March 2013

ISSN (P):2279-0934, (O):2279-0942

PROMOTIONAL STRATEGY OF BIG BAZAAR: AN INSIGHT

T. Surulipal1 K. Baranidharan2
ABSTRACT
This article provides a checklist for retailers to develop Promotional strategies of Big Bazzar within the parameters of their
personal retail philosophies. No matter what your retail store sells, it needs a thoughtful promotions strategy to attract new
customers and retain existing ones. There are a number of creative, eye-catching ideas that can work wonders in creating buzz
about your retail store and increase traffic to it.
KEYWORDS
Retail Market, Promotional Strategy, Customer, Challenges, Industry Structure etc.
INTRODUCTION
The retail sector has been at the helm of Indias growth story. The sector has evolved dramatically from traditional village fairs,
street hawkers to resplendent malls and plush outlets, growing from strength to strength. According to the Indian Council for
Research on International Economic Relations (ICRIER), India is the seventh-largest retail market in the world, and is expected to
grow at a CAGR of over 13% till FY12. In FY07, retail sales reached Rs. 13,300 bn and amounting to around 33% of Indias
GDP at current market prices1. According to the Central Statistical Organization (CSO) estimates, the total domestic trade (both
retail and wholesale) constituted 13.0% of countrys GDP in 1999-2000, which has gone up to 15.1% in FY07.
During the last few years, the Indian retail market has seen considerable growth in the organized segment. Major domestic players
have entered the retail arena and have ambitious plans to expand in the future years across verticals, formats, and cities. For
example, companies like Reliance, Tata, Bharti, Adani Enterprise, have been investing considerably in the booming Indian retail
sector. Besides, a number of transnational corporations have also set up retail chains in collaboration with big Indian companies.
The Indian retail sector is highly fragmented and the unorganized sector has around 13 million retail outlets that account for
around 95-96% of the total Indian retail industry. However, going forward, the organized sectors growth potential will increase
due to globalization, high economic growth, and changing lifestyle. Moreover, high consumer spending over the years by the
young population (more than 31% of the country is below 14 years) and sharp rise in disposable income are driving the Indian
organized retail sectors growth. Even small towns and cities are witnessing a major shift in consumer lifestyle and preferences,
and have thus emerged as attractive markets for retailers to expand their presence.
Although the growth potential in the sector is immense, it is not without challenges that could slow the pace of growth for new
entrants. Rigid regulations, real estate costs, high personnel costs, lack of basic infrastructure, shrinkage, and highly competitive
domestic retailer groups are some such challenges. Additionally, resource constraints at shopping mall projects are also delaying
completion and disrupting many retailers entry strategies.
CHALLENGES OF RETAIL STORES
Running a retail store can be a daunting proposition for many business owners. While retail can be a successful venture and can
lead to big profits, several challenges stand in the way of many entrepreneurs. Regardless of what you sell or where your business
is located, most retail shops have to overcome some or all of these challenges to fully succeed.
Online Competition
Increasing popularity of online shopping is hitting many retailers right in the wallet. People are streamlining their lives and often
like to use the computer they are already sitting in front of to make their purchases. When shoppers elect to use online retailers
instead of the brick-and-mortar stores, the owners of the latter must counter through additional promotions and advertising to
draw the customers out from in front of the computer screen and into the store. Alternatively, they can choose to join the online
community and develop a website presence of their own, affording them the ability to compete both in the physical and online
markets.
Big Retailer Prices
Unless you are one of them, you have to compete with the big stores who often have the ability to offer lower prices than you can.
When a major department store chain or a big box store moves into your area and sells some of the same items you do, it takes
serious effort to compete and give customers a reason to come to your place of business.

Assistant Professor, Commerce, MASS College of Arts & Science, Tamil Nadu, India, [email protected]
Research Advisor, P.G. and Research Department of Commerce, Marudupandiyar College, Tamil Nadu, India,
[email protected]
2

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Since many larger retail stores do a higher volume of business, they are able to order products in larger quantities and receive
considerable wholesale discounts. This results in lower retail prices for the consumer. In order to combat this fact of business life,
smaller retail stores must get creative to make consumers want their products over those offered by the larger stores; otherwise,
the consumer will naturally go with what costs less most of the time.
RETAIL IN INDIA: INDUSTRY STRUCTURE
The retail industry in India is highly fragmented and unorganized. Earlier on retailing in India was mostly done through familyowned small stores with limited merchandise, popularly known as kirana or mom-and-pop stores. In those times, food and grocery
were shopped from clusters of open kiosks and stalls called mandis. There were also occasional fairs and festivals where people
went to shop. In the twentieth century, infusion of western concepts brought about changes in the structure of retailing. There
were some traditional retail chains like Nilgiri and Akbarallys that were set up on the lines of western retail concepts of
supermarkets. The government set up public distribution system (PDS) outlets to sell subsidized food and started the Khadi Gram
Udyog to sell clothes made of cotton fabric. During this time, high streets like Linking Road and Fashion Street emerged in
Mumbai. Some manufacturers like Bombay Dyeing started forward integrating to sell their own merchandise. Shopping centres or
complex came into existence, which was a primitive form of todays malls.
Since liberalization in early 1990s, many Indian players like Shoppers Stop, Pantaloon Retail India Ltd (PRIL), Spencer Retail
ventured into the organized retail sector and have grown by many folds since then. These were the pioneers of the organized
Indian retail formats. With the opening up of foreign direct investment in single-brand retail and cashand-carry formats, a new
chapter unfolded in the retail space. Many single-brand retailers like Louis Vuitton and Tommy Hilfiger took advantage of this
opportunity. The cash-and-carry format has proved to be an entry route for global multichannel retailing giants like Metro, WalMart and Tesco.
MAJOR GLOBAL RETAIL MARKETS
This section provides a brief overview on the retail industry in major global markets based on phases of retail lifecycle. Organized
retailing in most economies typically passes through four distinct phases:

In first phase, new entrants create awareness of modern formats like hypermarket, supermarket, department stores etc
and raise consumer expectations.
In second phase, consumers demand more modern formats as the markets develop, thereby leading to a strong growth.
In third phase, the high rate of growth leads to a stage of mature market.
In final phase, the domestic market reaches a saturation point leading to limited growth, so retailers explore and
evaluate new markets across the globe.

Big Bazaar
Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the Pantaloon Group. It works on it the
economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. The idea was pioneered by
entrepreneur Kishore Biyani, the head of Pantaloon Retail India Limited Big Bazaar stores in Metros have a gaming area and kids
play area for entertainment, Big Bazaar is not just another hypermarket. It caters to every need of customers family. Where Big
Bazaar scores over other stores is its value for money proposition for the Indian customers.
At Big Bazaar, customer will definitely get the best products at the best prices -- that is what Big Bazaar guarantee. With the everincreasing 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 customer. In addition, this is just
the beginning. Big Bazaar plans to add much more to complete customers shopping experience.
RESEARCH METHODOLOGY
Since the study is on retail sector first the detail study of the store is been conducted about its Management team its structure the
number of departments which all brands does the store has, who are its suppliers about its warehouses. Based on the topic
objectives were set, to arrive at the opinion on objectives a set of 100 questionnaires were designed of 10 questions, and response
is collected from the customers who are visiting the store. For data collection, Random Convenient sampling method was adopted,
for a project the area of research is Chennai.
OBJECTIVE OF PROJECT

To know the effective promotional strategy which influence customer to purchase a product of Big Bazaar?

To know the promotional strategy of big bazaar.

To know the relationship between promotional strategy and buying decision.

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Data Collections Method

Market research requires two types of data i.e. secondary data and primary data. Primary data has been used abundantly for the
Field survey study. Well-structured questionnaires were prepared & the survey was undertaken. Feedback for the display has been
taken by asking questions & observation has done to gather primary information. There is also a use of secondary data, collected
from the various journals, books, and websites & from company managers.
Sampling Method
Since the study is restricted to Retail sector, all the functional Departments of Big Bazaar and the respondents are found at the
store only so according to the convenience randomly they are being picked so sampling method is used in this study is Random
Convenient Sampling.
Sampling
For the study, 100 respondents were identified as sample size through random convenience sampling method. These respondents
are the customers of Big Bazzar in Chennai. Data collection is through the questionnaire instrument.
LIMITATIONS

The study was restricted to only the customers of BIG BAZAAR, Chennai.
The time constant was a limiting factor, as more time required carrying out study on other aspects of the topic.
The result and analysis based on the customer survey method and small sample size has taken only 100.
Findings are related to particular areas.

FINDINGS

From the sample size of 100 samples it is found that, the Brand is well positioned in the minds of customers because
77% of the respondents preference is Big Bazaar for their shopping.

Among 100 respondents, 23% of people told that first, they came to know through T V advertisement and 34% of
people told that through hoardings 31% of them told that through news paper and finally 12% of them highly agree that
through bus painting.

Among the 100 respondents, 87% of them told that they are aware of promotional activities of big bazaar .only 13% of
them told that they are not aware of promotional activity of big bazaar.

Among the 100 respondent 51% of them told that they are attracted towards big bazaar only for the offers 9% of them
told that service and 23% of them told that quality and only 17% of them told that due to availability of products

Among 100 respondent 43% of them agree that offers is the most emerging factor influencing purchase decision and
only 11% of them told that service 21% of told that quality and finally 25% of them told that effective advertisement is
responsible for the purchase decision.

Among 100 respondent 77% of them told that, promotional activities of big bazaar gives clear message and 23% of
them told that they did not understood.

Among 100 respondent 98% of people interest to advise others, in future shopping and only 2% of them not interest to
advice.

Among 100 respondent 83% them told that promotions of big bazaar changes their purchase pattern and only 17% told
that does not changes.

Among 100 respondent 94% of them told that they are interested to buy products under unexpected offers and 6% of
told that they do not buy.

CONCLUSIONS
Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the
hearts of customer who is God said by the business tycoons. There is always a first mover advantage in an upcoming sector. In
India, that advantage goes to BIG BAZAAR. It has brought about many changes in the buying habits of people. It has created
formats, which provide all items less than one roof at low rates. The consumers preferences are changing & they are moving
from Traditional stores to Modern Retail outlet. It is the main challenge to the Modern retail outlets to attract the customers
towards them from that of competitors.

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To attract more customers companies have to carry out the promotional activities in unique way. BIG BAZAAR has maintained
that uniqueness & has succeeded in attracting customers. The promotional activity of the company, which famous as Less Price
than others as it says Nobody Sells Cheaper and Better! is made its place in minds of customer. As the competition is
becoming stiff in the market the activities conducted by the company are unique, that have brought fruitful result to the company.
Among them sales Promotions is one of the leading activity or unique among all other activities & has high influence on the
customer walk-in.
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