E-Commerce project on

Big Bazaar

SUBMITTED BY:-

SHWETA BHANDARI (005)

KRATIKA RATHI (027)

VARSHA TUSHIR (034)

SHILPA DESHWAL (047)

COMPANY PROFILE

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer marker.
Headquartered in Mumbai (Bombay), 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.

The company’s 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, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station,
aLL, Top 10, mBazaar and Star & Sitara. The company also operates an online portal,
futurebazaar.com.

Their subsidiary company, Home Solutions Retail (India) Limited, operates Home
Town, a large-format home solutions store, Collection i, selling home furniture products
and E-Zone focused on catering to the consumer electronics segment.

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

Pantaloon Retail is the flagship company of Future Group, a business group catering to
the entire Indian consumption space.
 • PROMOTERS
Future Group Manifesto
“Future” – the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write
rules yet unwritten; create new opportunities and new successes. To strive for a
glorious future brings to us our strength, our ability to learn, unlearn and re-learn, our
ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but
create future scenarios in the consumer space and facilitate consumption because
consumption is development. Thereby, we will effect socio-economic development for
our customers, employees, shareholders, associates and partners.
Our customers will not just get what they need,
but also get them where, how and when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends, we will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. We shall keep relearning. And in this process, do just one thing.
Rewrite Rules. Retain Values.
Group Vision
Future Group shall deliver Everything, Everywhere, Everytime for Every Indian
Consumer in the most profitable manner.
Group Mission
We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.

Core Values
Indian ness: confidence in ourselves.
• Leadership: to be a leader, both in thought and business.
• Respect & Humility: to respect every individual and be humble in our conduct.
• Introspection: leading to purposeful thinking.
• Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long term relationships.
• Simplicity & Positivity: Simplicity and positivity in our thought, business and
action.
• Adaptability: to be flexible and adaptable, to meet challenges.
 Flow: to respect and understand the universal laws of nature.
• CUSTOMERS
Target Audience:

• Big Bazaar targets higher and upper middle class customers.

• The large and growing young working population is a preferred customer segment.
• Big Bazaar specifically targets working women and home makers who are the
primary decision makers.

It is part of Big Bazaar’s (owned by Biyani’s Future Group) new Guerrilla Marketing
Strategy. Guerrilla force is divided into small groups that selectively attack the target at
its weak points. Wah lah, enter the future and in the world of cut throat competition,
corporate use extension of the same strategy in marketing…hmmmm never imagined this
while we were in our shorts!! Corporate like coke, pepsi, etc have been using the same
for quite some time now and the latest entrant is our very own ‘Future Group’- Big
Bazaar, Pantaloon Future Bazaar, eZone are all part of this group and they are taking on
the biggies like Shoppers Stop, Lifestyle, and Tata’s Westside. With retail market in India
especially in metros where standard of living and disposable income is at an all time high,
competitors will vie for the market share and can stoop to any levels while marketing
their products. Guerilla marketing is just one of the strategies and surely one can learn a
lot from the ongoing battle, especially people interested in marketing/marketing
techniques.

Different elements of retail mix:

• Merchandise assortment Merchandise assortment

• Location
• Price
• Visual merchandising Visual merchandising

Pantaloons, through Big bazaar and Futurebazar serves Indian retail market with 5,000
products listed under 185 categories and many more products are being included on daily
basis. Consumer durables, home décor, apparel, mobiles, watches and accessories with
warranties are offered in both physical and online stores.
 • COMPETITION

TOP MAJOR RETAIL PLAYERS

Retailer Existing Brand No.of Total Total Expansions Plans

formats Names Stores Retail Sales
Space(‘000 2004-
sq ft) 05(USD
mn)
Pantaloon Retail Department Pantaloon 13 1,948 241 Invest around
Indian Ltd store USD125 mn
between FY06-
FY08. Open 80-100
more stores across
formats.
Hypermarket Big Bazaar 18 N/A N/A Triple total Retail
area by FY08 to 6.5
mn Sq. ft.
Supermarkets Food 9 N/A N/A Enter into Furniture
Bazaar and home retailing.
Seamless Central 3 N/A N/A
Malls
RPG Retail Hyper markets Spencer’s 3 480 96 Open 21
hypermarkets and
supermarkets

Music Stores Music 225 N/A N/A Open another 100

world Music Stores in
FY08.
Super markets Spencer’s 49 N/A N/A
Shopper’s Stop Department Shopper’s 20 1000 96 Add 2 mn Sq. Ft. of
Ltd. stores Stop Retail Space in
FY08
Books & Crosswords 33 N/A N/A Entering
Music Stores Hypermarket
format, 18 Stores
planned by FY08
 Home Home Stop N/A N/A N/A Setting up
furnishing Speciality Stores
for Home
Solutions.
Landmark Group Department Lifestyle 8 370 67 Set up 25 New
(Based in Dubai) Stores Departmental stores
by FY08. Invest
USD 65mn over
next 5 years.
Trent India Ltd Department West side 19 350 52 Add 640,000 sq.ft.
Stores of Retail Space.
Hypermarkets Star India 1 N/A N/A Open 17 Stores
Bazaar under the
departmental and
Hypermarket
formats by FY08.
Books & Land Mark 4 N/A N/A
Music Stores
 • HISTORY
Major Milestones
1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons
trouser, India’s first formal trouser brand.
1991 Launch of BARE, the Indian jeans brand.
1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format
launched across the nation. The company starts the distribution of branded
garments through multi-brand retail outlets across the nation.
1995 John Miller – Formal shirt brand launched.
1997 Company enters modern retail with the launch of the first 8000 square feet
store, Pantaloons in Kolkata.
2001 Three Big Bazaar stores launched within a span of 22 days in Kolkata,
Bangalore and Hyderabad.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central - India’s first seamless mall is launched in Bangalore.
2005 Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus
League Clothing and Planet Retail.

Sets up India’s first real estate investment fund Kshitij to build a chain of
shopping malls.
2006 Future Capital Holdings, the company’s financial is formed to manage over
$1.5 billion in real estate, private equity and retail infrastructure funds. Plans
forays into retailing of consumer finance products.

Home Town, a home building and improvement products retail chain is

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

Future Group enters into joint venture agreements to launch insurance

products with Italian insurance major, Generali.

Forms joint ventures with US office stationery retailer, Staples.

2007 Future Group crosses $1 billion turnover mark.

Specialised companies in retail media, logistics, IPR and brand development

and retail-led technology services become operational.
 Pantaloon Retail wins the International Retailer of the Year at US-based
National Retail Federation convention in New York and Emerging Retailer of
the Year award at the World Retail Congress held in Barcelona.

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

2008 Future Capital Holdings becomes the second group company to make a
successful Initial Public Offering in the Indian capital markets.

Big Bazaar crosses the 100-store mark, marking one of the fastest ever
expansion of a hypermarket format anywhere in the world.

Total operational retail space crosses 10 million square feet mark.

Future Group acquires rural retail chain, Aadhar present in 65 rural locations.

• PRODUCTS AND SERVICES

Lines of Business:

1. Leisure and Entertainment

• BOWLING Co. premium family entertainment centre, offering multiple,
novel and unique leisure and entertainment options.
• F123 an entertainment zone, offers a wide range of gaming options
ranging from bowling and pool to redemption and interactive video games
to bumper cars besides fun foods and services for junior and adult
banqueting.

2. General Merchandise
• BIG BAZAAR:
• BLUE SKY: Watches & Sunglasses Blue Sky is a national chain of
stores offering a wide selection of branded and private label sunglasses
and watches.
• BRAND FACTORY: brings to the Indian consumers the best Indian and
International brands.
• CENTRAL: Launched in May'04 at Bangalore, Central is a showcase,
seamless mall and the first of its kind in India.
• KB’s FairPrice: ‘KB’s FairPrice’ are neighbourhood stores. These are
simple but modern, self service ration shops. These stores retail only 300
essential products, at simply the lowest prices in town.
• NAVARAS: Jewellery for all emotions and occasions
• PANTLOONS: stores have a wide variety of categories like casualwear,
ethnicwear, formalwear, partywear and sportswear for Men, Women and
Kids.
• SHOE FACTORY: wide range of the latest and trendiest footwear and
accessories.

3. Telecom and IT
• GEN M: Trendiest mobile phones, accessories, download kiosks, airtime
recharges, the products that focus on gaming, chat, music, video etc.
• ONE MOBILE: offering comprehensive solutions to satisfy the
knowledge, entertainment and communication aspirations of Individuals.
• M PORT: M-port is a one-stop shop for everything that you need to fulfil
your home and I.T. needs.

4. Home solutions
• HOME TOWN: vast range of products and services under one roof for
consumers that goes into building a house and everything to make it a
‘Home’.
• e ZONE: brings to you the trendiest in electronics, at the lowest prices.
• FURNITURE BAZAAR: Furniture Bazaar offers an entire range of Home
Furniture needs that are utilitarian and affordable in their pricing.
 • ELECTRONICS BAZAAR: Currently present within Big Bazaar stores,
Electronics Bazaar offers the best deals in branded electronic goods and
appliances.
• COLLECTION i: Collection i, a lifestyle furniture store offering the
trendiest and latest in furniture, furnishings and home accents.

5. Fashion
• aLL: Shop big and shop for big, coz fashion just got a little larger! Fashion for plus size
people.
• CELIO: Celio, a market leader in men's ready to wear clothing in France, is now
available in India.
• LEE COOPER: Regarded as a brand that is fun to wear and be associated with, Lee
Cooper offers the entire range of lifestyle products in fashions category for young men
and ladies.
• PLANET SPORTS: India's largest multi-brand sports and lifestyle speciality retail chain,
Planet Sports offers the largest collection of international sports and lifestyle brands.

6. Food
• BREW BAR: The Brew Bar is a classy and refined; yet reasonable an
egalitarian a bar with loads of bonhomie!
• CAFÉ BOLLYWOOD: Indian street food but with assurance of highest
levels of hygiene and quality.
• CHAMOSA: Chamosa is a branded chain, which sell the local Indian
snack combination of tea and samosas.

7. Wellness and Beauty

• STAR & SITARA Salon & Beauty Parlour.
• FIT & HEALTHY: housed within Big Bazaars and Food Bazaars is your
one-stop source for health tips, information, advice & products.

8. Books and Music

• DEPOT: books, music CDs and cassettes, movies (VCD and DVD) and
multimedia (CD-ROMs). Depot Store also has an attractive selection of
gifts (candles, mugs, photo frames, themed packs) toys and stationery
(office, children’s and fancy stationery).

9. E-tailing
• FUTUREBAZAAR.COM: Having pioneered the retailing business in
India, PRIL has now decided to revolutionize the consumer e-commerce
business in India. Buying products is a 3 step simple process. All one has
to do is Search, Register and Buy.

10. Retail real estate and private equity fund

 Future Capital’s AMC and private equity arm has floated retail real estate
development (Kshitij and Horizon), private equity (Indivision) and hotel
development funds. We expect the retail real estate development fund and private
equity business to support the core business and drive future growth of the core
retail business.

11. Consumer financing – personal loans, credit cards

Taking a cue from global retail giants like Wal-Mart, PRIL has forayed into the
consumer financing and credit card business. With expected sales of US$4bn by
FY10 and a wide r each through 1,500 stores, PRIL would be an attractive
distribution channel for financial products including personal loans, insurance,
credit cards and mutual funds
E-COMMERCE INITIATIVES

• INTRANET/EXTRANET
Future Group’s e-business initiative www.futurebazar.com has been touted by itself and
others as a quintessential Internet company. The Internet has given future bazaar a means
for extending the reach and scope of its direct sales business model at a relatively low
marginal cost. It has done so in part by automating functions such as product
configuration, order entry, and technical support, enabling the company to grow revenues
without a corresponding increase in customer service costs. Also, it has used the Internet
to coordinate a network of suppliers and business partners who carry out many of the
processes involved in building, distributing and supporting personal computers. Future
bazaar refers to this network of partners as a _virtual company_ linked electronically by
the Internet. Another name for this type of industrial organization is the value web.

Future bazaar was an early and enthusiastic convert to the Internet, creating its first web
site in 1994 and moving many of its business activities to the Internet ahead of its
competitors. The company saw that its direct model Big Bazaar) gave it an advantage in
selling online. It did not have to worry about channel conflict with resellers and
distributors when it began selling online

Futurebazaar.com offers the widest range of products at ‘lowest prices – everyday!’

Having pioneered the retailing business in India, PRIL has now decided to revolutionize
the consumer e-commerce business in India. It intends to provide customers with a
streamlined, efficient and world class personalized shopping experience, which will be
supported with the best technology platform.

Buying products is a 3 step simple process. All one has to do is Search, Register and
Buy. Here you can expect a shopping experience akin to shopping at an actual bazaar but
with added simplicity & everyday low prices and an assurance of 'your product' will be
delivered within 7 days of purchase.

We are proud to inform you that Future Bazaar has been named as the Best Indian
Website 2007 in the Shopping category by PC World.

Future Bazaar won the top spot after beating other established players like Rediff,
Indiatimes, Sify, eBay, Indiaplaza, Chennai Bazaar and India Mall. The award was
presented to Future Bazaar for its "decent, no-nonsense approach, while providing a
good shopping experience".

FutureBazaar.com is owned and operated by Future Bazaar India Ltd. (FBIL). FBIL is a
part of the Future Group, India’s largest retail conglomerate. FBIL is the e-commerce
arm of the Future Group. The company was incorporated in 2006 and began business in
2007.
As part of India’s largest retail chain, we enjoy the benefits of buying in bulk for the
entire group. Our aim is to get you a great range of products at great prices.
Core Competency of the business…what makes us different from others.!!

• A choice of more than 20,000 products

• Delivery across more than 1500 cities and towns in India covering around 16,000
pin codes
• Fast deliveries – tie ups with world leaders in logistics & transportation services
• A dedicated Customer Care helpline for any queries.
• Always offering Manufacturer’s guarantee as opposed to Seller’s guarantee, which
most of the other online shopping sites offer.
• Aggressive Prices –FutureBazaar.com has the benefit of leveraging the sourcing
network of the Future Group’s retail chains. This sourcing network straddles a wide
range of product requirements, thus being able to offer us economies of scale
thereby - unbelievable prices to it’s customers
• Unmatched Selection of Products and Brands – We have more than 20,000 products
which create the flexibility to offer a large range of choices to customers. We also
have partnerships with most of the brands available in the country, which allows us
to get the latest in the range to our customers. We have been able to create some
major popularity ripples with our corporate clients with products like mobiles,
electronics, laptops, MP3 players, T-shirts, Gift Vouchers and so on.
• Seamless end-to-end Logistics Solution – We pride ourselves in having built an
end-to-end logistics solution; right from stocking, dispatching, and delivery
confirmation up to post-sales support. Our back-end infrastructure enables us to
service around 15000 pin codes across India.
• Dedicated Customer Care for online customers as well as corporate clients - We
have a dedicated team straddling client servicing, sourcing, logistics and customer
service for all our customers.
• "Our Brand Association" - Most importantly out parentage & association with
humungous retail brands like Big Bazaar, Pantaloons, Central and many more,
lends tremendous amount of trust & credibility to our end consumers.
The FutureBazaar.com Promise

Manufacturer’s warranties on all products

FutureBazaar sells only original products from authorized dealers; so all applicable
products carry the original manufacturer’s warranty. Customers can visit any of the
authorised service centres of the manufacturer if required. The invoice accompanying the
product is your warranty document, so please preserve it.

Guaranteed Delivery
FutureBazaar guarantees to deliver the exact product you selected, without defects. In
case you have received a different product, or if the product was damaged in transit,
please let us know and and we will ensure that we replace the product or ensure that your
money is refunded.
Please note that delivery times vary according to products. 95% of our deliveries take
place within the committed time period. For the occasional delays, we will contact you
and update you about the status.

Secure Payments
We are committed to ensuring that no payment misuse happens, so we work with banks
and payment gateways to ensure that your information is protected. Payments are
protected both by us and by the policies of your bank, and the chances of fraud in these
channels are actually very low. We also have a Risk Management team that scrutinises all
payments to ensure that there are no fraudulent transactions. Our office address is also
available for any one who wishes to contact us in person. Moreover, being part of India’s
largest retail company with a presence all over India, we are omnipresent!

Our Simple 15-Day Return Policy - No questions asked!

If you have purchased something at FutureBazaar.com and the product did not meet your
expectations or does not fit your needs, then you can return the product to us, no
questions asked, as long as it is in its original packaging and accompanied by its invoice.
Just contact our Customer Care and we’ll arrange to pick up the product from your home
- simple.

Prompt Customer Support

Our Customer Care is manned by dedicated personnel, who can take decisions and
resolve your problems. They are empowered to solve your problems and are aware of the
processes and means to handle them. In case they cannot solve the problem at their end,
they will trigger the required action on your behalf or advise you the best possible
method to a successful fulfillment of all your queries/issues. Be assured that when you
call us, your call is being taken seriously.
• INFRASTRUCTURE & APPLICATIONS
Future bazaar makes use of electronic data interchange (EDI) technology with all its
business partners to send and receive standard transactions such as purchase orders,
invoices and shipping schedules etc.

Logistics and
supply chain

EDI
T

EDI Portal EDI Customer

T (Database T support
Suppliers
& Intranet)

EDI
T

Distributors

It makes use of both intranet applications (inventory management systems, supply chain
management systems etc.) and Extranet applications (Payment systems, sales
management system etc.) to sell a wide variety of consumers and electronic goods. It
provides fast assistance to customers through email and Toll free telephone lines. It has a
very appealing and user friendly portal which lists all available goods in smooth lists
which can be sorted according to prices, brands etc. It also has strategic alliance with
banking companies to facilitate secure payment system.
E-COMMERCE SOLUTION
Future group follows a strict e-tailing Business-to-Consumer (B2C) model with both
physical and online stores. This is the most well-known and familiar type of e-commerce.
In the B2C model, businesses attempt to reach individual consumers. The model adopted
by the Future group is the E-Tailer. In this model, the companies open there online retail
stores. The customers have to dial into the Internet to check their inventory and place an
order. They are following the ‘clicks and mortar’ or ‘clicks and bricks’ model, whereby,
along with having physical stores the company has online distribution channel. The
company has developed a niche strategy, and clearly identified their target market and its
needs, and this has led to profits. Keeping expenses low, selection broad and controlled
inventory are keys to success in e-tailing, with inventory being the most difficult to
gauge.

It generates revenue from sales. In the sales revenue model, companies derive revenue by
selling goods, information, or services to customers. It can also make use of its current
infrastructure to develop a system to provide digital information like Mp3’s, Movie
downloads etc on pay-per-view or subscription basis. For this a major scaling of physical
infrastructure will not be required. Future group make sure that with a pleasant and
comforting shopping experience is completed with a sense of security of personal details
of a customer. Necessary security measures are implemented and it should continuously
develop its system to tackle possible threats. Future group provides easy payment options
like credit card, Bank account transactions etc. It should look forward to adopt more
convenient means like payment-on-delivery. Portal looks very appealing to customers
and future group should continuously make efforts to improve it so that customers do not
get bored.

Pantaloon’s migration to SAP follows almost two decades of extensive IT use, in which
the company has used various software solutions to adapt to constant, rapid change
within the industry. As Pantaloon’s Chief Information Officer Chinar Despande explains,
the decision to migrate onto the SAP NetWeaver platform was a combination of the
robustness of the mySAP Business Suite, as well as its ability to incorporate additional
retail-specific components like the SAP Advanced Planning Tool for Merchandise
Planning and SAP Apparel and Footwear Solutions, which perform forecasting and
planning; allocation and replenishment; and customer relationship management
functions. The Pantaloon business model has evolved significantly since 1987.

The company entered into a strategic relationship with SAP, the business software
solutions provider, to implement its mySAP Business suite, SAP Advanced Planning
Tool for Merchandise Planning and SAP Apparel & Footwear Solutions across the
organization.

The solution

Some of the qualities of SAP e-tailer solutions are that it supports product development,
which includes ideation, trend analysis, and collaboration with partners in the supply
chain. From sourcing and procurement, which involves working with manufacturers to
fulfill orders to strategic merchandising plans and optimize cost, quality, & speed–
variables that must be weighted differently as business needs, buying plans, and market
demand patterns change; managing the supply chain, which involves handling the
logistics of moving finished goods from the source into stores and overseeing global
trade and procurement requirements; selling goods across a variety of channels to
customers, which requires marketing and brand management; managing mark-downs and
capturing customer reactions, analyzing data, and using it to optimize the next phase of
the design process.

Benefits and challenges

The key challenges in this project were not in the implementation. Rather, the difficulties
were faced during the data migration and in managing the interim period when the project
was underway for about six months. Migrating unorganized data to an organized format
is a challenging task.

Pantaloon has not been able to see immediate benefits from this implementation. this
application certainly has long term benefits which will be seen when the performance of
various aspects will be analyzed. “It is too early to calculate RoI. We have already started
working on MAP (Merchandise assortment Planning), Auto-Replenishment and Purchase
orders. We hope to use these systems to optimize our inventory and cut it by about two to
four weeks (depending on the line of business),” says Biyani.

Maintenance & Hardware

This application is currently being used by around 1,200 employees across the
organization. For maintaining this implementation and its related applications, Pantaloon
has an in-house team and it has outsourced ABAP resources. They are also in the process
of setting up a SAP Competency Centre. The system runs on a HP Superdome server on
HP UNIX 11i and the database is from Oracle. The cost of this project was about $10
million.

Future projects

After the successful implementation of SAP for its retail chain, Pantaloon plans to go
ahead with IT projects such as implementation of WMS with RFID, Customer
Intelligence and CRM. Inventory and Promotions Optimization will be pursued later this
year.

The company has a company-wide network (VPN) connecting all the stores, warehouses
and offices. The network is capable of handling heavy traffic of data, voice and video and
is in the process of building the capability of transmitting relay of all CCTVs at stores to
zonal offices to get live feeds of store action. There is also video conferencing capability
between store managers and category teams at HO for highly personal and interactive
discussions, a fully integrated transaction system.