Report submitted in partial fulfilment of the requirement for the award of the degree of Post Graduate Diploma in Management (PGDM) Batch: 2012-2014 Faculty Guidance: Prof. Asok Kumar Banerjee.
Report submitted in partial fulfilment of the requirement for the award of the degree of Post Graduate Diploma in Management (PGDM) Batch: 2012-2014 Faculty Guidance: Prof. Asok Kumar Banerjee.
Report submitted in partial fulfilment of the requirement for the award of the degree of Post Graduate Diploma in Management (PGDM) Batch: 2012-2014 Faculty Guidance: Prof. Asok Kumar Banerjee.
"Analysis of customer Behaviour, Developing and Strategy to Promoting
Fashionable Clothes"
A report Submitted in partial fulfilment of the requirement for the award of the degree of Post Graduate Diploma in Management (PGDM) Batch: 2012-2014 Faculty Guidance: Prof. Asok Kumar Banerjee Submitted By: Alka Jha Roll no: 1221000638
Institute of Management Technology (IMT)
DECLARATION I, Alka Jha, hereby declare that the Project entitled Analysis of Customer Behaviour, Developing and Strategy to Promoting Fashionable Clothes of Big Bazaar is a Part of (FUTURE GROUP). It is my original work and has not been published or submitted for any degree, diploma or other similar titles elsewhere. This has been undertaken for the purpose of partial fulfillment of Post Graduate Diploma in Management (PGDM) at Institute of Management Technology (IMT).
Date: Alka Jha Roll no: 1221000638
ACKNOWLEDGEMENT
With the blessings of god, I take the opportunity with Great pleasure, a deep sense of gratitude and profound thanks to everyone who have spared their valuable time and giving me their co-operation to make this project successful. First of all I am extremely thankful to my college Institute of Management Technology for providing me with this opportunity and for all its cooperation and contribution. I also express my gratitude to my Project mentor and guide Mr. Kali Kant Mishra. I am highly thankful to our respected project guide for giving me the encouragement and freedom to conduct my project. I am also grateful to all my faculty members for their valuable guidance and suggestions for my entire study. I would like to express my sincere thanks to Mr. Mr. Kali Kant Mishra of Manager-Operation (Zonal) of Future Group, for continuous efforts, and proper guidance, supervision and generous co-operation throughout this work which enabled me to present this project report. I would also like to thank my parents for their constant help, support and coordination which helped me a lot during the training. Special thanks have to be reserved for all the officials and staff for providing facilities and extending full support to the training.
Date: Alka Mishra Roll no: 1221000638
Table of contents
1.
Introduction
1-3
2.
Company Profile
4-7
3.
Objectives
8
4.
SWOT Analysis
9
5.
Marketing Mix of Fashion@Big Bazaar
10-12
6.
Customer Services in Big Bazaar
13-17
7.
Research Methodology
18-19
8.
Data Analysis
20-33
9.
Recommendations
34-36
10.
Limitations
37
11.
Conclusion
38
12.
Bibliography
39
13.
Future Work
40
14.
Annexure 1: Questionnaire Annexure 2: Pictures
41-43
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INTRODUCTION Retail Industry In India Abstract The retail sector in India is booming beyond everybodys expectation. The Indian retail sector has caught the worlds imagination in the last few years. Indias retail growth is largely driven by increasing disposable income, favourable demographics, changing lifestyles, growth of the middle class segment and a high potential for penetration in the urban and rural markets. The organised retail sector accounts for 8% of the total retail sector in India and is expected to increase to 20% by 2020(Indian Retail Market Opening more doors:deloitte.com Jan2013). India has been ranked as the top retail destination globally for retail investment attractiveness among 30 emerging markets in the world. The Indian retail sector is the second largest untapped market after China. .(India Retail Apparel :Research by Northbridge capital Jan 2011). A number of large corporate houses like Aditya Birla,Bharti,Reliance, Future Group, Tata retail, RPG and Rahejas have diversified to add retail to their sector portfolio. The organised retailer sees competition from the unorganised sector as their biggest challenge followed by competition between organised retailers and the inefficiency of distribution channels, internal logistical problem and retail shrinkage. Overview of Indian Retail Industry India is one of the largest emerging markets with a population of over 1 billion. It is one of the largest economies in the world in terms of purchasing power. Organised retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organised retail stores. Many semi-rural areas have also witnessed entry of such organised retail outlets. Indias retail market size is currently US$350 billion and is now growing at a CAGR of 15-20% which is quite lucrative.(Winning in Indias sector (pwc.com) Retailing as a whole contributes almost 14% to Indias GDP and employs almost 8% of Indias employable population. The organised sector accounts for a mere 8% indicating a huge potential market opportunity that is lying in the waiting for the consumer savvy organised retailer. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, cosmetics, shoes, watches, beverages, food and even jewellery are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer.
Recognising the long-term growth potential of Indias retail market, some of the countrys largest conglomerates have allocated billions of dollars to launch large scale retail initiatives that span cash-andcarry,food and grocery, books, music and leisure, gems and jewellery, footwear, apparel, accessories, etc. India-based retail incumbents are expanding their presence across a range of categories, experimenting with formats, launching private labels, strengthening supply chain systems and more.
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THE IMPORTANCE 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.
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.
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Food and Grocery is the largest category within the retail sector with 60 per cent share followed by Apparel which is 8% of the total retail sector.
The future group ceo Kishore Biyani is the head who see in to the details of every project. With the concern of ceo of future group only decisions are taken. The owner of future group and the ceo of future group are same hence all the activities which take place have to told in advance so that a proper action can be taken. With the help of the other people the future group owner or future group ceo accomplishes the target as well as changes the strategy as the time comes. According to the market conditions and the preference of the people owner of future group has come up to this level. The future group owner is rigorously attempting to do the best for the welfare of the people and the country on the whole. The company was initially founded by the future group ceo or owner of future group Kishore Biyani. All the new that comes in the press or an important decision comes from ceo of future group and future group owner. It is very necessary that the latest methodologies are used which will be helpful in tracking for the benefits. If the customers are not satisfied then it will be difficult to carry on thus future group owner or future group ceo is striving hard with the innovative means. Even you need to get information about the new ventures started by ceo of future group and owner of future group then you can get it over the internet. Thus for every organization it is really beneficial that the CEO takes an upper edge over all the decisions. If ceo of future group takes the decision then it will be better. Though future group owner or future group ceo can leave the decisions on the other people and they will handle but still it is the duty to give some kind of support which will be influential for the firm.
The future group consists of some of the most important names which include rajan malhotra future group, roopa purushothaman future group and anuradha tripathi future group. They are concerned with the different sections of the group and work according to the strategy they plan. The employees who work under them have to coordinate with the higher authority so that they can come up with new innovations that will boost the progress of the organization. Though anuradha tripathi future group, rajan malhotra future group and roopa purushothaman future group are in different departments but still they have to manage the activities which are going around. It is their duty to fulfil the targets which have been set up in the long run. 5
Big Bazaar, Is se sasta aur accha kahi nahin Indias first hypermarket chain launched in 2001. Big Bazaar is not just another hypermarket. It caters to every need of our family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, we will definitely get the best products at the best prices thats 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 our shopping expereince. Big Bazaar brings the most powerful Retail credit card in India. 3 Timeline
2001 - Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad. - 2002- ICICI Bank card is launched
2003 - Big Bazaar enters Tier II cities with the launch of the store in Nagpur. - Big Bazaar welcomes its 100 millionth customer at its new store in Gurgaon.
2004 - Big Bazaar wins its first award and national recognition. Awarded the countrys most admired retailer in value retailing at the India Retail Forum. - A day before Diwali, the store at Lower Parel becomes the first to touch the 10 million turnover on a single day.
2005 - Initiates the implementation of SAP and pilots a RFID project at its central warehouse in Tarapur. - Launches a unique shopping program: The Big Bazaar Exchange offer,inviting customers to exchange household junk at Big Bazaar. - Big Bazaar and ICICI Bank launched ICICI Bank Big Bazaar Gold Credit card program to reward it loyal customers. 6
2006 - Mohan Jadhav sets a national record at Big bazaar with Rs1,37,367 shopping bill. The Sangli farmer becomes Big Bazaars largest ever customer. - Big Bazaar launches Shakti, Indias first credit card program tailored for housewives. 2007 - The 50 th Big Bazaar store is launched in Kanpur - Big Bazaar partners with Futurebazaar.com to launch Indias most popular shopping portal. - Big Bazaar initiates the Power of one campaign to help raise funds for the Save the Children India Fund 2008 - Big Bazaar becomes the fastest growing hypermarket in the world with the launch of its 101th store within 7 years of launch. - Big Bazaar does a new look with a fresh new section Fashion@Big Bazaar 2009 - Big Bazaar opens its second store in Assam at Tinsukhia - Mahendra Singh Dhoni and Asin were chosen as the brand ambassadors to promote fashion at Big Bazaar. 2010 - Future Value Retail Ltd is formed as a specialised subsidiary to spearhead the groups value retail through Big Bazaar, Food Bazaar and other formats - Big Bazaar wins CNBC Awaaz Consumer awards for the third consecutive year. Adjudged the most preferred Multi brand retail outlet and the most preferred Multibrand One Stop Shop. - Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with around 200 million customers visiting its stores. - Big Bazaar opens its third store in Kanpur at Z Square Mall. - Big Bazaar opens its fourth store in Kanpur at Jajmau, which is the largest leather tannery garrison of India. - Vidya Balan was chosen as the brand ambassador of Big Bazaars Price Challenge exercise 2011 - Big Bazaar comes up with a new logo and a new tag line Naye India ka Bazaar - 200 th store opened in India - For the convenience of the online customers, Big Bazaar started free shipping on all orders above Rs.1000 2012 - Big Bazaar entered into a five year multi-million dollar deal with Cognizant Technology solutions for IT infrastructure services that supports Future Groups store, warehouses, offices and data centres.
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Board of directors 1. Managing director - Mr Kishore Biyani 2. Wholetime Director -Mr Gopikishan Biyani, Mr Rakesh Biyani 3. Director -Mr Shailesh Haribhakti , Mr S.Doreswamy , Mr Darlie Koshy , Mr Anil Harish
BIG BAZAAR SUPER CENTER
Mission and Values
MISSION VALUES We share the vision and beliefs that our customers and stakeholders will 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 ambiton. 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.
Indianness: Confidence in ourselves Leadership: To be a leader, both in thought and business. Respect and 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 and Positivity: Simplicity and Positivity in our thoughts, beliefs and actions. Adaptability: To be flexible and adaptable to meet challenges. Flow: To respect and understand the universal laws of nature.
Big Bazaar Hyper mart chain in India Outlet 140 Outlets Parent Group Future Group Owner Kishore biyani Founded 2001 Head Quarter Jogeshwari, Mumbai Industry Retail Tagline Naye India Ka Bazaar 8
OBJECTIVES PRIMARY OBJECTIVES:-
To Study the Analysis of Customer Buying Behaviour, To Promote Developing and Strategy Fahionable Clothes.
To Study the Analysis Of Customer Buying Behaviour:- To analyze the Consumers Buying hobbits towards Big Bazaar. To analysis the Consumers needs, wants and demands towards Products. How they feel about Quality, Variety, Style, Merchandise, Service, Discounts etc. Overall Products of Big Bazaar.
To Promote Developing and Strategy Fashionable Clothes:- Fashionable Clothes like in Fashion@Big Bazaar, How consumers feel about the Shirts, Jeans, Trouser etc. How they advertising the fashionable Clothes, How they generate Consumer awareness. What are the competitors of Fashion@Big Bazaar towards Consumers.
SECONDARY OBJECTIVES:- Swot analysis of Big Bazaar. To find out the current status of Big bazaar Profit Club. To find out the Customer response towards Big Bazaar. To identify main competitors of Big bazaar. To study the satisfaction level of customer in General Merchandise. To Analysis on Customer Insights and Satisfaction from Fasion@Big Bazaar. To Analysis of Factors that pulls Customer towards a Fashion Retail Store. To Study the End of Session Sale Promotional Strategies Adopted Fashion Retailers.
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SWOT Analysis Strength 1. Affordability for middle class 2. Quality, choice and convenience 3. Wide range of products and service offerings 4. Strong presence in local market 5. Attractive promotional offers 6. Large no. SKU provided to consumer 7. Good branding and advertising by also roping in celebrity brand ambassadors Weakness 1. Not known globally and restricted to the Indian market only 2.No different game plan according to divergent people, their lifestyles, their tastes and budgets in India Opportunity 1. To expand globally by tie-ups 2. Entering into high premium segment 3.Opportunity to expand into financial services catering to huge segment 4. Increased rural penetration Threats 1.Competitors global presence 2. Future bazaar under debt can cause financial problems 3.Low priced brand perceived to be of low quality in Indian consumer minds 10
MARKETING MIX OF FASHION@BIG BAZAAR
Product:
Categories Present: Womens Wear Tops Jeans Kurtis Ladies SKD (Salwar Kurta Dupatta) set Track Pants Night Wear Mens Wear Casual T-shirts Casual Shirts Formal Shirts Jeans Formal Trousers Ties Socks Accessories Belts
Big Bazaar has low margin and high sales volume. Pricing at Big bazaar is based on the following techniques:
Psychological Pricing: It uses the concept of psychological pricing (Rs 49,99,199,499) to attract the customers.
Product Bundling Pricing: It refers to selling combo packs and offering discount to customers. These combo packs add value to customer and leads to increased sales. Example: Buy 2 Jeans at Rs 1450 (Price of one jeans=800)
Special Event Pricing: Special prices are given in events like Durga Puja, Diwali, etc. Special discounts are also given every Friday owing to Fashion Friday campaign of Fashion @Big Bazaar.
Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non- peak hours or days of shopping is also a pricing technique used in Indian retail, which is aggressively used by Big Bazaar. e.g. Wednesday Bazaar
Place: Big Bazaar stores are operational across three formats- hypermarkets spread over 40,000- 45,000 sq feet, the Express format over 15,000-20,000 sq feet and the Super Centres set up over 1lakh sq feet. Big Bazaar has 214 stores across 90 cities and towns in India. Apart from the metros the stores are also doing well in Tier 2 cities. The stores are normally located in high traffic areas. Big Bazaar also has its stores in developing areas to take advantage before the real estate value boomsPromotion: FBB promotes itself using the following elements:
Above The Line (ATL) Elements: Print Radio Below The Line (BTL) Elements: Outdoors Cable TV Leaflets Auto Announcement Auto Back Branding Van Banners Posters Movie hall Slides Corporate Emailers
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CUSTOMER SERVICES IN BIG BAZAAR Customer service is the provision of services to customers before, during and after a purchase. According to Turban Customer service is a series of activities designed to enhance the level of customer satisfaction that is, the feeling that a product or service has met the customer expectation." Its importance varies by product, industry and customer; defective or broken merchandise can be exchanged, often only with a receipt and within a specified time frame. Big Bazaar will often have a desk or counter devoted to dealing with returns, exchanges and complaints, or will perform related functions at the point of sale; the perceived success of such interactions being dependent on employees "who can adjust themselves to the personality of the guest," Customer service plays an important role in an organization's ability to generate income and revenue. From that perspective, customer service should be included as part of an overall approach to systematic improvement. A customer service experience can change the entire perception a customer has of the organization. Customer support is a range of customer services to assist customers in making cost effective and correct use of a product. It includes assistance in planning, installation, training, trouble shooting, maintenance, upgrading, and disposal of a product.
Promotional Schemes and Innovations: Sabse Sasta Din Big Bazaar introduced Sabse Sasta Din (Cheapest Day) with the intention of attaining a sales figure of Rs 26 crore in a single day. The concept became such a hit that the time period for the offer had to be increased from one day to three days in 2009 (January 24 to 26) and to five days in 2011 (January 22 to 26).Special discounts are given on fashion along with home needs, food, electronics, mobiles and others. Maha Bachat The concept of Maha Bachat (Mega Saving) was introduced in the year 2006 as a single day campaign with attractive promotional offers across the company outlets. Over the years, the concept has grown to become a six-day biannual campaign. During this campaign, attractive offers are given in all the value formats including Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. The Great Exchange Offer Introduced on February 12, 2009, The Great Exchange Offer allows customers to exchange their old goods for Big Bazaar coupons. The coupons can be redeemed later for buying brand new goods from Big Bazaar outlets across the nation.
Celebrity Brand Endorsement Asin and M.S Dhoni were the endorsers for Fashion@Big Bazaar 14
Customer oriented Strategy Attracting & retaining customers. Uses Non- Traditional Strategy. Moving demo-trolley. Used young population as strategic blessing. Attractive Design, interior & good atmosphere.
Objectives of Customer Services Provide customers and staff with clear standards and expectations Ensure all customer contact reaches an appropriate conclusion Minimize incidences of repeat contact Seek to provide a seamless service for customers Provide equal and easy access to our services at a time, place and channel that meet the needs of residents, businesses and other stakeholders Cater for customers needs irrespective of age, gender, physical or financial ability, ethnic origin, race, religion or geographical location Provide a prompt, courteous and knowledgeable response to all customer enquiries. Equip our staff to provide customers with an excellent standard of service Enable our customers to provide feedback easily, through complaints, customer surveys, etc Use customer compliments, comments and complaints to drive improvements to service Improve the speed, quality and consistency of response to enquiries by having our information in a format that can be easily accessed
Market Segmentation of Fashion@Big Bazaar Big Bazaar has divided India into three segments: 1. India one: Consuming class which includes upper middle and lower middle class (14% of India's population). 15
2. India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washermen, etc. (55% of India's population) and 3. India three: Struggling class (remaining 31% of India's population). While Big Bazaar is targeted at the population across India one and India two segments, Aadhaar Wholesale is aimed at reaching the population in India three segment. With this, emerged as a retail destination for consumers across all classes in the Indian society. The Target Market Segment for Fbb are: a) Price conscious people b) People who want styles and designs at affordable prices
Competitors of Fahion@Big Bazaar Pantaloon Reliance Shoppers stop Westside Globus Max Spencers Vishal mega mart Local retailers
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IMPROVEMENT OF BIG BAZAAR PROFIT CLUB
Big Bazaar has now launched its new promotion scheme Big Bazaar Profit Club with much hype and hoopla and this one of the first attempts by a mainstream retailer to make the customers buy more from them. Thisscheme allows a customer to pay Rs.10,000 upfront and after joining this club they can shop for Rs.1,000 a month for 12 months. The catch here is they can buy for 20 per cent extra. Though this has been tried by jewellery retailers, this is the first time that a mainstream retailer is coming out with such a promotionalcampaign. Though this scheme is slowly picking up it has actually resulted in some experts raising eyebrows. Some in the industry believe that this a strategy by Big Bazaar to improve its cash flows which saw negative cash flows of Rs.4.92 crores for 18 months ended 31 st Dec 2012. With this campaign, the retailer would be able to lock in customers for next 12 months and this will help the company to improve its sales for next three or four quarters. It is reported that already 20,000 customers have become members of the Big Bazaar Profit Club which has resulted in Big Bazaar netting Rs.20 crore in advance. But all does not seem so rosy for Big Bazaar. There are some who believe that this scheme will not have much impact on the balance sheet of the company because the sheer size of balance sheet is so high that even if 200,000 customers sign in for this program the companys finances will be miniscule. Even if there is 10 times increase in the enrolment that will only mean Rs.200 crore in the kitty of Big Bazaar which is too miniscule looking into the debt size which stands at Rs.2,500 crore. Whatever be the stand of the experts, one silver lining in this whole promotion exercise is that Big Bazaar have better bargaining power with the suppliers and help them meet the working capital needs better as there will be increase in the sales. It is for sure that the company would be able to increase their market share andsales volume with this scheme.
The Big Bazaar Profit Club launched by Future Group already has 20,000 customers. Under this scheme, a customer has to pay Rs 10,000 upfront, after which he can shop for Rs 1,000 a month for 12 months. In other words, he gets a shopping bonus of 20 %. Had the customer put the money in a fixed deposit with a bank, his earnings wouldn't have been more than 9 %. Schemes like this have traditionally been popular amongst independent jewelers - Customers pay 12 installments and the jeweler chips in with the 13th. This is the first time that a mainstream retailer is trying it out and on such a large scale.
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Strengths of the scheme:
The scheme will improve the company's sales for the next three or four quarters as it will lock in customers for the next 12 months. Over 20,000 customers have already signed up for the scheme, meaning Rs 20 crore is already banked with the company.
Once a customer comes in they are likely to buy for more than the free coupon amount. In the pilot scheme the average ticket size of a Big Bazaar Profit Club member was reported to be Rs 2,300 per visit, which was almost double the ticket size of a normal shopper.
The accrued funds will reduce working capital requirements and consequent interest outflow. The increase in sale volumes will give the retailer better bargaining power with the suppliers.
Concerns regarding the scheme The scheme will further reduce margins of the company which is already in the red. It had reported a loss of Rs 20.41 crore on a turnover of Rs 1,285.54 crore for the quarter ended December 31, 2012.
The cost of managing so many accounts is high. The administrative costs are expected to be 1-2 % of sales. FEATURES
When Customer fill the registration form they will get a card. By showing this card, They will get additionally Rs,2000 Shopping free thats mean monthly Rs,2000. If a customer not coming 2 months he/she will get Rs,3000 Shopping in next time. The minimum age of this registration is 18 years. This card valid across all (Big Bazaar/Future Bazaar/Fashion at Big Bazaar). This card valid for 18 months.
STEPS TO IMPROVE
Most of the Customers dont know about this club. Many customer visit first time. Awareness should be necessary. Sales Promotion should be improved, thats mean try to organize a show which provide all the features and facilities about this Card. Leaflet should be distributed to all the Customers. Marketing should be needed. Every Sales person should be more aggressive. Visual display plays a very important role. There should be more facilities to customers for making this card more attractable. Customers who get this card should provide additional discount 5-10%. Top Management should be regularly talk with Subordinates and take feedback. After approaching Customer try to collect their names and address. 18
RESEARCH METHODOLOGY Methodology adopted for study
Discussion with the executives, managers, employees. Visiting & surfing websites of company.
Meaning
Research Methodology is a set of various methods to be followed to find out various informations regarding market strata of different products. Research Methodology is required in every industry for acquiring knowledge of their products. Sources of Data Primary Source Secondary Source
Primary Source-The primary data was collected by means of a survey. Questionnaires were prepared and customers of the big bazaar were approached to fill up the questionnaires. The questionnaire contains the type and quality of services provided by the Fashion@Big bazaar to the customers. Secondary Source-In order to have a proper understanding of the customer service of Big Bazaar a depth study was done from the various sources such as books, a lot of data is also collected from the official websites of the Big bazaar and the articles from various search engines like Google, yahoo search and answers.com.
Research Design-The research design is exploratory till identification of customer services parameters. Later it becomes descriptive when it comes to evaluating customer perception of customer service of the big bazaar. RESEARCH SAMPLE
SAMPLING PLAN:
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SAMPLE SIZE: The work is a case of Big bazaar one of the Retail Sector industry together representing great percent of the market share of Indian retail sector. The survey was conducted in the city of Kolkata with one branches of big bazaar, with 200 customers as respondent.
DATA COLLECTION TOOL-Data is collected from various customers through personal interaction. Some other information is collected through secondary data also. Data was collected through a structured questionnaire. The questionnaire consists of two parts. The first part consists of one questions concerning the demographic information of the respondent such as gender. The second part consisting of 4 questions exploring the respondents perception about the customer services of Fashion@ big bazaar.
RESEARCH LIMITATIONS
The study is only for the big bazaar confined to a particular location. Hence the findings cannot be treated as representative of the entire retail industry. Respondents may give biased answers for the required data. Some of the respondents did not like to respond. Respondents tried to escape some statements. This was one of the most important limitation faced, as it was difficult to analyse and come at a right conclusion.
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DATA ANALYSIS ON CUSTOMER INSIGHTS AND SATISFACTION FROM FASHION AT BIG BAZAAR
Demographics of the Respondents: No. Of Respondents based on Gender:
Gender Total Percentage Males 579 64% Females 321 36%
This shows that majority of the respondents that is 64% of the respondents are males.
Males 64% Females 36% 21
Analysis of Customers Satisfaction and Insights into Fashion at Big Bazaar:
Customers preferred shopping destination for fashion:
Interpretation: This chart shows that majority of the respondents (46%) shop from Big Bazaar and the second position is held by Pantaloons from which the next majority (27% of the respondents) shop.
Big Bazaar 46% Reliance Trends 6% Max 4% Pantaloons 27% Westside 6% Shoppers Stop 7% Others 4% 22
Customers ratings on pricing of Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good)
Interpretation: Maximum respondents (55%) are satisfied with the pricing at Fashion at Big Bazaar, 14% of the respondents find it very good. Its only 4% of the respondents who find the pricing poor and 1% who find it very poor.
8 30 238 499 125 0 100 200 300 400 500 600 Very Poor Poor Neutral Good Very Good Price Rating 23
Customers ratings on quality of merchandise at Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good) Ratings Total Percentage 1 14 2% 2 66 7% 3 361 40% 4 384 43% 5 75 8%
Interpretation: This shows that majority of the respondents (43%) find the quality of merchandise at Fashion at Big Bazaar to be good.8% find it to be very good. Only 7% of the respondents seem to be dissatisfied with the quality of merchandise and 2% find it very poor.40% of the respondents remain neutral about their views.
14 66 361 384 75 0 50 100 150 200 250 300 350 400 450 Very poor Poor Neutral Good Very Good Quality Rating 24
Customers ratings on the Designs/styles available at Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good) Ratings Total Percentage 1 17 2% 2 87 10% 3 344 38% 4 378 42% 5 74 8%
Interpretation: Only 42% of the respondents find the styles of merchandise at Fashion at Big Bazaar to be good.8% find it to be very good. 38% remain neutral about their views . 10% of the respondents are not satisfied with the styles available in the fashion segment of Big Bazaar and 2% find it to be very poor. . 17 87 344 378 74 0 50 100 150 200 250 300 350 400 Very poor Poor Neutral Good Very Good Design Rating 25
Customers ratings on availability of variety at Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good) Ratings Total Percentage 1 9 1% 2 72 8% 3 312 35% 4 390 43% 5 117 13%
Interpretation: This shows that maximum respondents (43%) are happy with the variety availability.13% find the variety to be very good. But a large chunk that is 35% remains neutral about the fact and 8% of the sample population find the styles at Fashion at Big Bazaar to be poor and 1% is very poor.
9 72 312 390 117 0 50 100 150 200 250 300 350 400 450 Very poor Poor Neutral Good Very Good Variety Rating 26
Customers ratings on the Store Displays carrying Information at Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good) Ratings Total Percentage 1 5 .5% 2 32 3.5% 3 234 26% 4 442 49% 5 187 21%
Interpretation: This shows that maximum respondents (49% of the total respondents) find the store displays to be good.21% find it to be very good.26% remain neutral and only 4% of the respondents find it to be poor.
5 32 234 442 187 0 50 100 150 200 250 300 350 400 450 500 Very poor Poor Neutral Good Very Good Store displays carrying information ratings 27
Customers ratings on the Behaviour of Employees at Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good) Ratings Total Percentage 1 12 1% 2 22 2% 3 163 18% 4 471 52% 5 232 27%
Interpretation: This shows that maximum respondents (52% of the total respondents) find the Store employees behaviour to be good.27% find it to be very good. Only 2% of the respondents are unhappy about the Store Employees behaviour.1% find it to be very poor.
12 22 163 471 232 0 50 100 150 200 250 300 350 400 450 500 Very poor Poor Neutral Good Very Good Store Employees Behaviour Ratings 28
Customers ratings on the Discounts and Offers given at Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good)
Interpretation: It can be seen that majority of the respondents (43% of the total respondents) find the offers and discounts of Fashion at Big Bazaar to be good. 34% find it to be very good. Only 5% of the respondents find the discounts to be poor and 1% find it to be very poor. 9 42 151 389 309 0 50 100 150 200 250 300 350 400 450 Very poor Poor Neutral Good Very Good Discounts/Offers 29
Customers ratings on Customer Service at Fashion at Big Bazaar (1-very poor, 2-poor,3-neutral,4-good,5-very good) Ratings Total Percentage 1 35 4% 2 26 3% 3 134 15% 4 524 58% 5 181 20%
Interpretation: This shows that maximum respondents (58% of the respondents) find the customer service at Fashion at Big Bazaar to be good.20% find it very good. Its only 3% of the total respondents who find the customer service to be poor and 4% who find it very poor. 35 26 134 524 181 0 100 200 300 400 500 600 Very poor Poor Neutral Good Very Good Customer Service 30
Customers preferred store on the basis of Prices: Store Total Percentage Big Bazaar 696 77% Reliance Trends 25 3% Max 29 3% Westside 32 4% Pantaloons 115 13% Globus 3 0%
Interpretation: Big Bazaar emerges as a clear winner when it comes to Prices. 77% of the total respondents prefer Fashion at Big Bazaar on the basis of attractive prices. Pantaloons is ranked second with 13% respondents choosing it. 77% 3% 3% 4% 13% 0% Big Bazaar Reliance Trends Max Westside Pantaloons Globus 31
Customers preferred store on the basis of Quality of Merchandise offered:
Store Total Percentage Big Bazaar 286 32% Reliance Trends 41 5% Max 43 5% Westside 92 10% Pantaloons 431 48% Globus 7 0%
Interpretation: Majority of the respondents (48%) prefer Pantaloons on the basis of quality of merchandise offered. Fashion at Big Bazaar ranks second with 32% of the respondents choosing it and Westside ranks third with 10% respondents choosing it. 32% 4% 5% 10% 48% 1% Big Bazaar Reliance Trends Max Westside Pantaloons Globus 32
Customers preferred store on the basis of Styles: Store Total Percentage Big Bazaar 207 23% Reliance Trends 51 6% Max 69 8% Westside 111 12% Pantaloons 455 50% Globus 7 1%
Interpretation: Maximum respondents (50%) chose Pantaloons on the basis of styles available. Big Bazaar was ranked second with 23% responses and Westside third with 12% responses.
23% 6% 8% 12% 50% 1% Big Bazaar Reliance Trends Max Westside Pantaloons Globus 33
Customers Satisfaction with respect to the display of merchandise at Fashion at Big Bazaar: Total Percentage Highly Satisfied 229 26% Satisfied 502 56% Neutral 90 10% Dissatisfied 40 4% Highly Dissatisfied 39 4%
Interpretation: Maximum respondents (82% of the total respondents) are satisfied with the display of merchandise at Fashion at Big Bazaar. Only 8% of the respondents are not satisfied with it.
SUMMARY OF DATA ANALYSIS: 1. Majority of the respondents shop for apparel from Fashion at Big Bazaar followed by Pantaloons. 2. Customers were happy with the following attributes of Big Bazaar: Price Store Atmosphere Store displays Employees behaviour Advertisements Discounts/Offers Customer Service 3. Customers found the following attributes of Fashion at Big Bazaar to be poor: Quality Designs Variety Outside Appearance of the store 4. Customers preferred Fashion at Big Bazaar for Price, Discounts/Offers and Store Atmosphere. 5. It was found that Pantaloons is the major competitor of Fashion at Big Bazaar. Customers chose Pantaloons over fbb for its merchandise quality, variety and styles. 6. Customers were satisfied with the display of clothes, size availability and space management at Fashion at Big Bazaar. 7. Hoardings and Newspapers are the most effective means of communication for the customers.
RECOMMENDATIONS ON THE BASIS OF DATA ANALYSIS 1. Betterment of Quality- Only 51% of the respondents were satisfied with the quality of merchandise offered by Fashion at Big Bazaar. Also,Pantaloons was preferred over Fashion at Big Bazaar in terms of quality of apparel. So Big Bazaar should try to improve the quality of merchandise it offers. 2. Bring in more styles- Only 50% of the respondents were satisfied with the availability of latest styles at Fashion at Big Bazaar. Also, Pantaloons was preferred over pantaloons in terms of styles. Pantaloons offers the customers many styles to choose from. So, Big Bazaar can consider improving its merchandise in terms of its style offerings. Like Westside and other fashion retail formats, it can tie up with international fashion forecasting agencies like WGSN and offer the latest style trends. It can also consider getting in more low to mid ranged brands in the store that are latest in terms of style. Also, the absence of womens formals at fbb is a drawback. So, fbb can consider introducing this segment in its stores. 35
Also, the collection of fbb western apparel is basic and casual. So it can consider introducing a party wear segment especially for the womens section. Examples of Theme based promotions done by various fashion retail formats: Back to Earth theme of Shoppers Stop emphasised on an eco friendly range where jute fabrics were used as key material in display.
Back to holidays theme of Shoppers Stop featured kids holiday range where the window display showed a beach replete with sun, sand and surf boats to promote casual summer kids wear.
Shoppers Stops theme Sonnet of the Summer in March 2013, had a vivid floral theme to promote its floral spring summer collection.
Allen Solly had a theme called Colour Lab which allowed customers to choose from a range of colours and encouraged cross selling. 36
Westside has used themes like Hawaiian and Wildest Way. Globus is currently using the theme Casual blues (June 2013) to promote its denim and tees collection.
RECOMMENDATIONS BASED ON CUSTOMERS SUGGESTIONS AND COMPLAINTS: 1. Consumers complained of salespeople not present in the store. They had to be called from other sections of the store for help. So, Big Bazaar should ensure availability of salespeople in the fashion section at all times. 2. Consumers also complained of the billing procedure to be really slow. So, Big Bazaar can consider opening a section exclusively for fashion or add another billing counter to its already existing one. 3. Consumers were not aware of the denim fest happening in Big Bazaar before visiting the store. They said that the denim fest was not promoted and advertised in an efficient way. Promotions were limited only inside the mall (Ground Promotions inside Mani square ground floor ) and inside the stores .So, Big Bazaar should advertise such events in a more extensive way. 4. Customers were not very happy with the styles available. They complained of Big Bazaar not coming up with the latest trends in the market. So, Big Bazaar should concentrate more on the designs and styles to retain and extend its customer base. 5. Customers also suggested that seating arrangement should be made in the store. 6. Availability of free drinking water was another suggestion made by some customers.
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LIMITATIONS Some Customers was not willing to giving proper response.
Due to very large size of the population, only a selected sample of customer could be contacted.
Some of respondents were not co-operative they didnt provide some of the details.
As per company rule many information was not disclose as the manager were busy in their daily schedule. It was not possible for us to spend more time in interaction with them.
Due to time constraint and other imperative work load during time period it could not be made possible to explore more area of concern pertaining to study.
Personal biases might have come while answer the question.
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CONCLUSION As most of the retail industries did market research before entering into market. Same thing was done by Big Bazaar. Location, market, consumer perception analysis was done by big bazaar. In one year, much more diversification was done in it. And to retain customers they use many loyalty programs & IT techniques. Big bazaar, a part of future group is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big bazaar with over 140 outlets in different part of India is present in both the metro cities as well as in small towns. Fashion@Big bazaar can attract more customers by different variety and assortments. Big Bazaar can improve customer satisfaction by providing home delivery services. We can conclude that Big Bazaar has one of the major retail industry in india. Working environment is good and also the various facilities is provided to increase the customer services. There exist a healthy & strong relationship between employees and managers. The employees accept their responsibility wholeheartedly and perform the services in well manner that satisfied the customers.
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BIBLIOGRAPHY
References
1. Philip Kotler, marketing management, (Pearson education, 12thedition)
2. Naresh Malhotra marketing research (An applied orientation), Research design, (Prentice hall of India pvt. 5th edition)
3. Berman B and Evans J.R, Retail Management (Pearson education, 10th edition)
4. Service Marketing by M.K Rampal
5. Integrated service marketing (4th edition) by Zeithmal
6.Retailing by levitiez and Pandit
7. Retail Marketing Strategies by Dr. Ramkishen Y.
Internet web sites
1 bigbazaar.co.in 2 literature review on bigbazaar.com 3 retailseminar.in 4 organizedretail.co.in 5 google.com 6 www.futuregroup.com
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FUTURE WORK There is no end to the possibilities, so no research work is ultimate. Every research can pave the way for further research into the aspect concerned. This is true for this research project also. As the Indian economy is going to grow manifold in the coming years and the ease in FDI in Indian retail sector, the percentage of organised retail will go up in India. This creates a chance to further enquire into the customer preferences, retail formats, merchandising etc. So although this project is self-conclusive itself but future research is possible and appreciated. The experience and knowledge that I have gathered during the doing of my project work will a great help for me. When I will be working in the industry. I have also learnt few basics about customer handling, interactions with the peoples and current positions of the market, which will help me in my near future.
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Annexure 1 Questionnaire 1. Gender Male Female
2. Where do you mostly buy clothes from? Big Bazaar Reliance Trends Max Pantaloons Westside Shoppers Stop Others (Please Specify)
3.On a scale of 1-5, rate the following with respect to the fashion at Big Bazaar (1- very poor, 2-poor, 3- Neutral, 4-good, 5- very good) 1 2 3 4 5 Price of the Apparel Quality of the Apparel Design/Styles Variety Available Store Displays carrying Information Store Employees Behavior Discounts/Offers given Customer Service (Sorting, Billing)
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4. Choose your preferred store on the basis of the following criterias: Fbb Pantaloons Max Reliance Trends Westside Globus Price Quality Style Other(Please Specify
5. How Satisfied are you with the following attributes of Fbb? Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Display of Merchandise
Space Management in the Store
Availability of Sizes
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Annexure 2 Pictures
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Name- Alka Jha Post Graduate Diploma in Management (PGDM) Institute of Management Technology (IMT) Batch: 2012-2014 Roll no: 1221000638 Contact no: 08800959684 Email- alkamishra842010@gmail.com