You are on page 1of 62

A REPORT ON EXPLORATORY STUDY OF PRICING &

PROMOTIONAL STRATEGY ADOPTED BY FOOD BAZAR


IN NAGPUR

Submitted in the partial fulfillment of the requirement for the

Award of

Master degree of Business Administration (MBA)

Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur

Guided By:
Prof. Geeta Naidu
Submitted By:
Sachin Somkuwar

S. B. JAIN INSTITUTE OF TECHNOLOGY, MANAGEMENT

& RESEARCH

NAGPUR: 2009-2011

1
DECLARATION

I, SACHIN SOMKUWAR here by declare that project entitled


“ PROJECT TITLE” or any part thereof has not been
submitted earlier to any diploma or degree, nor the data
have been derived for any project or university.

The Source of material and data used in this formulation have


been duly acknowledged and certified.

Place: Nagpur SACHIN


SOMKUWAR

Date:
Researcher

2
ACKNOWLEDGEMENT

I wish to express my sincere thanks to those who have


helped me to complete this project.

The completion of this dissertation in this present form


would not have been possible by the valuable guidance,
assistance, encouragement & contribution of various person
at different stages made it possible.

At the outset, I tender my deep sense of gratitude to my


Guide “GEETA NAIDU” for his/her meticulous guidance &
inspiration which kept in me the fervent desire to complete
this work.

I also acknowledge deep gratitude to the Coordiantor


“Prof. Geeta Naidu” & other faculty members for their
valuable guidance.

I am also grateful to the staff members of library of


S.B.J.I.T.M.R for their hearted co-operation in the completion
of this task.

SACHIN SOMKUWAR

RESEARCHER

MBA Sem IV

3
CHAPTERISATION SCHEME

4
SR.N TOPIC PAGE
O. NO.
1 INTRODUCTION 1-3
2 COMPANY PROFILE 4-10
3 OBJECTIVE & SCOPE 11
4 RESEARCH 12-13
METODOLOGY
5 PRICING AND 14-17
PROMOTIONAL
STRATEGIES
6 CUSTOMER 18-20
RELATIONSHIP
MANAGEMENT
7 DATA ANALYSIS & 21-29
INTERPRETATION
8 FINDINGS 30
9 SUGGESTION 31-32
10 CONCLUSION 33
11 LIMATATION 34
12 ANNEXURE 35-36
5
CHAPETR NO.1

INTRODUCTION

INTRODUCTION

6
Introduction of Food BAZAAR of BIG BAZAAR

Big Bazaar is Indian personification of retail. It’s 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 brand’s personality is self-explanatory
by its tag-line only. This statement places Big Bazaar at the top of customer’s 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 isn’t
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.

Pricing is a process of determining what a company will receive in exchange for


the product. Pricing factor includes manufacturing cost, a market condition and a quality
of a product. In food bazaar is one of the four element of market mix that is product, price,
place, promotion. It is link between seller and buyer for the purpose of influencing,
informing, perusing, a potential buyer purchasing decision. Food bazaar is achain of retail
sector of big bazaar like pantaloon retail. (India Ltd)

Big Bazaar has established itself in the first quadrant of Organization Value and
Customer Value Matrix. The SWOT Analysis of current strategy of Big Bazaar elaborates
the core competencies and areas of improvement.

7
The key features that have shaped in establishing of brand includes: -

• Food Bazaar ensures that no other kirana store / departmental store are offering
considerable discount compared to its own price. This helped Big Bazaar in being the
"value for money" store.

• Food Bazaar scores high on product mix as compared to kirana store.

• Cheap and local products are heavily stocked in Big Bazaar which make it easier to
attract lower middle class category of customers.

• Promotion of kirana is rare event but Big Bazaar used this channel efficiently to
establish itself as national brand.

• Customer loyalty resulting in high up sell, i.e., selling to existing customers.

• Food Bazaar refrains from high-end locations for business which reduces its rental
budget and provides competitive advantage over competitors. Kishore Biyani has
taken "early movers advantage" in many retail spaces.

The Big Bazaar brand name is in its growth stage. Pantaloon Group faced various small
and large scales troubles in the introductory stage of the brand.

Present years are the high growth years in retail sphere as market has high potential to
sustain growth. The sales are increasing, more and more firms are coming to market,
foreign players are entering into retail sector, and pie of organized retail is increasing in
retail sector.

8
9
CHAPETR NO.2

COMPANY
PROFILE

10
COMPANY PROFILE
Big Bazaar comes under the Pantaloon Retail India Limited (PRIL).
PRIL was early to realize the potential of the huge middle-class
population in India. We started the operations with a trouser brand,
Pantaloon. In the initial stages we had small format outlets branded
Pantaloon Shoppe, which were franchise operations realizing the
problems associated with franchise model, we decided to have our own
retail outlets. They launched the own retail store, “Pantaloon’s”. In
1997, they launched Big-Bazaar a hypermarket with over 1, 70,000
products as the first offering in value retailing segment. They have
introduced the concept of seamless malls in India through the new
format Central. We have wide network of Pantaloons stores spread
across the country.
Hence, apart from retailing lifestyle products, it ventured into
value retailing by launching the hypermarket chain. Big Bazaar is a
chain that stocks all home need products under one roof; spread over
30,000 square feet of land, across different cities in India. It has been
positioned as ‘Is se sasta aur acha kahin nahi,’ (Nothing cheaper and
better anywhere) indicating the value of stores. Big Bazaar stocks over
200,000 products that include apparel, food products, home appliances
and cosmetics. Products are cheaper than the market price by as much
as 5 to 60%. Apparels are cheaper by 25 to 60%while the price
difference on the other products varies between 5 to 20%.
On Oct. 12, 2001, we launched ‘Big-Bazaar’ as offering in the
value retailing segment. By removing inefficiencies from the
distribution chain we are able to unleash attractive savings, which are
passed on to the consumer. Big-Bazaar is India’s first hypermarket in
the discount store format. Big-Bazaar provides more than 2,00,000
items- food, grocery, utensils, kitchen needs, home needs, bath needs,

11
toys, stationary, electronics & white goods which are sold at a discount
to the maximum retail price. Price is the principal value proposition at
these stores.
A big driver of the Big Bazaar is the product variety. This is
achieved by selling wide range of products & through the “Shop-in-
Shop” format. As a result, a typical Big-Bazaar comprises shops that
stocks medicines, optical accessories, camera rolls, bakery products,
dry fruits, crockery, glassware, health & beauty products, ladies
accessories, electronics infant necessities, watches, clocks, computer
accessories, food & beverages, stationary, readymade garments,
household appliances, home furnishings, baggage We believe this is a
win-win situation as the customer is assured of product availability, the
shop owner can benefit of the in structure & we enjoy assured income
without needing to stock inventory. Also the shop-in-shop offering is
able to increase the customer traffic in to the stores. The Big-Bazaar
has been positioned to the customer as a place where the customer can
shop for each & everything for which if goes to a market. The number of
Big-Bazaar stores has increased from 4 in 2002 to 21 Oct 24, 2005.
They have also launched private label initiative in Big-Bazaar.
Understanding of the apparel industrial, decades of experience& a
vertically, integrated structure provides with more compelling reasons
to expand the number of private labels. We have launched a full range
of accessories to supplement the apparel business including imitation
jewellery, sunglasses, watches, mobile phones etc…
Analysts attribute the success of PRIL to cheaper sourcing of
products and lower distribution cost. Pantaloons sourced its products
through ‘Consolidators.’ There was a consolidator for each product
category. These consolidators were responsible for procuring quality
goods at the cheapest possible price, and were paid commissions on
their sale at the store. The consolidator directly dealt with
manufacturers, and as a result the distribution cost could be slashed as
no intermediates were involved. In addition to discounts on products

12
through the year, Big Bazaar also held events such as ‘Kitchen Mela’,
‘Trouser Mela’, etc. to attract customers.

BIG BAZAAR
FOR THE GREAT INDIAN MIDDLE CLASS
It is a unit of Pantaloon Retail (India) Ltd and caters to the Great
Indian Middle Class. It was started as a hypermarket format in Mumbai
with approx. 50,000 sqft of space. Its values and missions are to be the
best in Value Retailing by providing the cheapest prices and hence goes
the tag-line
“Is se sasta aur achcha kahin nahin”
It sells variety of merchandise at affordable rates, the prices of which it
claims are lowest in the city but the level of services offered is also very
low. Usually the items are clubbed together for offers as on the lines of
Wal-mart and Carrefour and it also offers weekend discounts. It
currently operates out of 64 stores and top 15 stores register a
cumulative footfall of 27 lakh a month on an average.

13
The following graph shows the retail life cycle and we can say that Big
Bazaar is currently at the Growth Stage.

Cash flow
Flows

Maturity

Growt
h Decline

Introductio
n

Time

MANAGEMENT OF FOOD BAZAAR


Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Pantaloon Retail


(India) Limited and the Group Chief Executive Officer of Future Group.

Mr. Gopikishan Biyani, Wholetime Director


Gopikishan Biyani, is a commerce graduate and has more than
twenty years of experience in the textile business.

14
Mr. Rakesh Biyani, Whole time Director

Rakesh Biyani is a commerce graduate and has been actively


involved in category management; retail stores operations, IT and
exports. He has been instrumental in the implementation of the various
new retail formats.

Mr. Ved Prakash Arya, Director

Ved Prakash Arya, is an engineer by training and is a graduate of


the Indian Institute of Management, Ahmedabad. Prior to joining
Pantaloon Retail, he was the CEO of Globus.

Mr. Shailesh Haribhakti, Independent Director


Shri Shailesh Haribhakti, is a Chartered Accountant, Cost
Accountant, and a Certified Internal Auditor. He is the Deputy Managing
Partner of Haribhakti & Co., Chartered Accountants and past president of
Indian merchant Chambers. He is on the Board of several Public Limited
Companies, including Indian Petrochemicals Corporation Ltd., Ambuja
Cement Eastern Ltd. etc. He is on the Board of Company since June 1,
1999.

OBSERVATION
There were various observations made from the time I entered the store.
They can be summed up as follows:
 Verticals inside the store relates to each category of product
o Food Bazaar Depot- books
o M-bazaar Electronic Bazaar
o Furniture Bazaar Footwear Bazaar
 Trolleys are not easily available, especially on other than
ground floor.

15
 Little attention to cleanliness. Dust on shelves as well as
some product items.
 In-house packaging not efficiently done.
 Crowded store interiors. Items are arranged in a cluttered
way. Tried to stock maximum number in limited area.
 Sign boards are not prominent. Lack of direction creates
confusion.
 Family crowd is evident. Youth comprises of only around 10%
of the crowd.
 Food Bazaar very efficiently managed. It is a bit over-staffed
but layout is very good. Shelf space is used very well to stock
products with clear distinction.

POSITIONING STRATEGY

COMPANY VISION, MISSION AND CORE VALUES

“Future” – the word that signifies optimism, growth, achievement,


strength, beauty, rewards and perfection. Future encourages us to
explore areas yet unexplored, write rules yet unwritten; create new

16
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.
They, 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.
Their customers will not just get what they need, but also get
them where, how and when they need. They will not just post
satisfactory results, They will write success stories. They will not just
operate efficiently in the Indian economy, we will evolve it.
They will not just spot trends; They 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. They shall keep relearning. And
in this process, do just one thing. Rewrite Rules. Retain Values.

Group Vision
Future Group shall deliver Everything, Everywhere, Every time for
Every Indian Consumer in the most profitable manner.

Group Mission
 They 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.
 They will be the trendsetters in evolving delivery formats,
creating retail realty, making consumption affordable for all
customer segments – for classes and for masses.
 They shall infuse Indian brands with confidence and renewed
ambition.

17
 They shall be efficient, cost- conscious and committed to quality
in whatever we do.
 They 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 action.
 Adaptability: to be flexible and adaptable, to meet challenges.
 Flow: to respect and understand the universal laws of nature.

18
CHAPETR NO.3

19
OBJECTIVES &
SCOPE

OBJECTIVES & SCOPE

OBJECTIVES

 To study the pricing strategies of food bazaar of Big Bazaar.


 To study the promotional activities of the food bazaar of Big
Bazaar.
 To study the Focus on various areas in planning
 To study the Potential and target market.
 To study the Customer relationship management
 To study the Key department of Big Bazaar.

20
SCOPE
The study is entirely based on “THE STUDY OF PRICING STRATEGIES
AND PROMOTIONAL ACTIVITIES OF FOOD BAZAAR OF BIG BAZAAR.”
When the project report is prepared it includes all the aspects of project
like company’s product and it’s market, manufacturing process,
operational viability, its marketing projection .This helps the
management to understand whether the project is practically possible
or not.
It may be use for industries profitability.
It may be useful for analyzing companies’ relationship with their
customer.

STUDY OF CUSTOMERS BEHAVIOUR


The other aspect of the study is customer. The study will focus on the
customers’ needs, their intentions for buying the products and their
preferences for buying products; whether the organized retail or
traditional retail.

21
CHAPETR NO.4
RESEARCH
METHODOLOG
Y

RESEARCH METHODOLOGY

Research Design
Research design is the plan, structure and strategy of
investigation conceived so as to obtain answers to research questions
and to control variance.

22
The plan is an outline of the research scheme on which the
research is to work. The structure of the research is the more specific
outline or the scheme and the strategy that shows how the research
will be carried out.
Types of Research Designs
It is broadly classified as exploratory and conducive research,
which focuses on the discovery of ideas. It is generally based on
secondary data. Conclusive research is more formal and structured
than the exploratory research. It is based on large representative
samples and the data obtained are subjected to quantitative analysis.

Methods of data collection

Primary data
Since the study is on Food bazaar sector first the detail
study of the store is been conducted about its Management team its
structure the number of departments which all products does the store
has, who are its suppliers about its warehouses.
Based on the topic objectives were set and to arrive at the
opinion on objectives a set of 10 questionnaires were designed and
response is collected from the 50 customers who are visiting the store.
For data collection Random Convenient sampling method was adopted.

Secondary data
Any data, which have been gathered earlier for some other
purposes, are secondary data. It acts as a reference for the present

23
study and also acts, as a benchmark against which are findings of
study.

Sources of Secondary Data.


It can be classified as
• Published Sources
These are annual Report Survey, journals, handbooks, news
papers, directories, websites, and magazines.
• Unpublished Sources
Records of Banks, personal records, letters etc.

24
CHAPETR NO.5
PRICING AND
PROMOTIONAL
STRATEGIES

25
PRICING AND PROMOTIONAL
STRATEGIES

After big bazaar coming to India it will be at its introduction stage so it


is quite obvious that it will adopt some strategy for attracting the
customers. The strategy which they would adopt is that they will have
low price, high advertisements, it would offer different kind of schemes,
offers, discounts, scratch cards, coupons. They would also give stress
on providing the prompt services like home delivery, after sales
services, guarantees and warrantees, so as to sustain in the market and
to create a good reputation.
Following are some additional strategies they require to adopt:
• Thorough market research
• Site selection and evaluation
• Employee search and training
• Less premium and low price branded goods in merchandise
assortment.
• Gaming zone and restaurant
• Promotional activities like advertisement, seasonal discounts,
festival offers, etc.
While formulating strategies we should keep in mind that strategies
should be flexible. This is helpful to change or revival of strategy.

26
FOOD BAZAAR AND 5 FORCES

We can get an idea about how competitive this retail sector is, by
looking at the degree of 5 forces. Threat of substitute is minimal and
supplier bargaining power is also less, but the rest of the forces are
deciding factor in the company’s marketing strategy. They being ‘high’,
means degree of competitiveness is also high. Big Bazaar is involved in
bulk purchases so bargaining power of suppliers is low. The retail chain
will not accept very low margins.

27
4Ps OF MARKETING

Marketing mix is a deciding factor in formulating marketing techniques for


the success of a particular brand, commodity or company. The
components of marketing mix are:
• Product
• Price
• Promotion
• Place
The survey which was conducted gives the effect of each and every
component of the 4Ps on the consumer’s mind.

PRODUCT

Big Bazaar offers the maximum variety for each category of product and
this is cited by the customers as one of the main reasons why they like
shopping at the hypermarket. The product is the same in every store in
the city but the brand options are more in Big Bazaar. Also, the quantity
for each product is not limited to large packs only. Observations also
revealed that local brands of popular commodities, like diapers, sugar,
wheat flour garments etc, are very popular in Big Bazaar stores. These
products are never advertised but offer huge margin on sales. In this way
lower middle class customers are targeted well. The commodities sold by
the retail chain also includes its “own products” which get a ready
distribution network. The own products of Big Bazaar include My World
fashion magazine which is not available anywhere else. So costs are low
for such products.

28
PRICE

Price is the critical point in a competitive industry. Food Bazaar works on a


low cost model. It considers its discounted price as its USP. There is an
average discount of 7-8% on all items in respect to their MRP. Prices of
products are low because it is able to secure stock directly from the
manufacturer. There are huge synergies in terms of bulk purchasing,
central warehousing and transportation. These all factors help the retailer
to keep low prices. Survey indicated that low prices were the biggest
factor in customers’ mind while coming to Big Bazaar. It has never
focused on giving great services, but laid emphasis only on low prices to
attract crowd.

PROMOTION

Big Bazaar has huge promotion budgets. The biggest idea behind all
advertisements is to make people do bulk shopping. After talking to the
store manager I found out that there are 2 types of promotional
strategies. One is the holistic advertisement which promotes the brand
and creates awareness among people. It is not targeted at promoting
each store but only creates an image of Big Bazaar as low-cost shopping
option. The store has advertised through TV, road shows and also started
reality show-typed promotional campaign “The Big Bazaar Challenge.”
Promotions like “Sabse Sasta Din” are a very successful strategy to get
footfall.
Other type of promotion is the particular store oriented promotion which
includes speaking on the loudspeaker in nearby blocks. Leaflets are given
in local newspaper. There are promotional efforts even inside the store.

29
During the survey, it was noticed that Buy 2 Get 1 Free type of
promotions are very common. Original prices are cut down and new prices
are shown, of which customer takes quick notice. There are loyalty
schemes which reward regular clients. Promotion is also done through co-
branded credit cards with ICICI bank.

PLACE

Place means the location of the business. Big Bazaar has always worked
on low-cost locations. It targets semi-urban population with its placement.
Its strategy is to find a cheap location and it never goes for hot spots in
the city. The talk with the manager revealed that the Teghoria store was
opened when it was scarcely populated. Even in Gurgaon, Big Bazaar
chose Sahara Mall instead of Metropolitan or City Centre, which are more
popular than Sahara Mall. It relied on promotional activities to make up for
unattractive locations. The channel of place is company owned stores to
have complete control. Another strategy used by Big Bazaar to overcome
location disadvantage is use of internet. It has launched a merchandise
retailing website www.futurebazaar.com which targets high-end customers
ready to use credit cards. Therefore Big Bazaar has made headway into a
potentially high-yielding sector of online trade. Internet as place has put
them in a profitable position because there is minimal expense of
maintaining a website. The promotion of this website is done through
advertisement on Google. The website is put as sponsored link.

PROMOTION
 The main idea behind every effort is to make a bulk purchase
 “Saal ke sabse saste 3 din”
 Hafte ka sabse sasta din “Wednesday bazaar”
 Exchange Offers “Junk swap offer”

30
 Advertisement (print ad, TV ad, radio)
 Brand endorsement by M.S Dhoni
 Point of purchase promotion
 Faida zones

Junk swap offer

 The customer can bring anything old, such as newspaper, and get
coupons issued in exchange of the junk. The customer can redeem the
coupons before the due date on the condition that he/she shops four
times the value of the coupon.
 The prices fixed by Big Bazaar are: clothes (Rs 200 per kg),
newspaper (Rs 25 per kg), plastics/utensils/leather goods (Rs. 75 per kg),
footwear/luggage (Rs. 100 per kg), Pet/beer bottles (Rs 15 per kg), tyres
(Rs 50 per kg), furniture (Rs 75 per kg) and others (Rs 20 per kg).
 "This offer will help the housewife clean out the junk while getting a
good value for it," says Mr. Sanjeev Agarwal, President (Marketing), and
Pantaloon Retail (India) Ltd.

31
CHAPTER NO. 6

32
CUSTOMER
RELATIONSHIP
MANAGEMENT

CUSTOMER RELATIONSHIP
MANAGEMENT

Customer Relationship Management (CRM) is an information industry


term for methodologies, software & usually internet capabilities that
help an enterprise manage customer relationships in an organize and
efficient manner. in many cases, an enterprise builds a database about
its customers. This database describes relationships in sufficient detail
so that management, sales people & customer service reps. can access
information; match customer needs with product plans & offerings;
remind customer of service requirements; no what other products a
customer had purchased; etc.
There are three parts of application architecture of CRM.

33
1. Operational CRM

Operational CRM means supporting the so – called ‘’front


office’’ business processes, which include customer contact
(sales, marketing & service). Task resulting from these processes
are forwarded to employees responsible for them, as well as the
information necessary for carrying out the task and interfaces to
back – end application are being provided and activities with
customers are being documented for further reference.

2. Analytical CRM

In analytical CRM, data gathered within operational CRM are


analyzed to segment customer or to identify cross- and up –
selling potential. Data collection and analysis is viewed as
continuing and interactive process. Ideally, business decisions are
refined overtime , based on feedback from earlier analysis and
decisions. Business intelligence offers some more functionality as
separate application software.

3. Collaborative CRM
Collaborative CRM facilitates interactions with customers through
all channels (personals, letter, fax, phone, web, e-mail) and
supports coordination of employee teams and channels. It is a
solution that brings peoples, processes and data together so
companies can better serve and retain their customers. The data
activities can be structured, unstructured, conversational and or
transactional in nature.
Collaborative CRM provides the following benefits:

34
• Enables efficient productive customer interactions across all
communications channels.
• Enables web collaboration to reduce customer service cost.
• Integrates call centers enabling multi – channel personal
customer interaction.
• Integrates view of the customers while interaction at the
transaction level.
CRM has to two typical implementation methods: on – premise and on –
demand / hosted. Each method has its advantages and disadvantages
has described below.

On – premise CRM is appropriate for


• Companies seeking to implement highly customize customer –
management practices.
• Companies that need specialized data structures
• Companies with complex or real – time integration requirements
• Companies with available in – house IT resources and support
system .
• Companies who can afford the up – front capital investment and
fixed costs
• Companies who deal with sensitive data that don’t want other
parties to see.

On – demand/ hosted CRM is appropriate for


• Customer seeking to implement standard processes from a
variety of industries and companies.
• Companies that is able to use standard data structures.
• Companies with more basic integration requirements

35
• Companies with limited technical resources and support
personnel
• Companies seeking variable pricing and lower up- front costs
• Companies dealing with non – proprietary data.

The CRM process

The CRM process is the most influential customer oriented strategy of


the decade. Despite its humble origins it has evolved into a relatively
complex strategy. The essentials of CRM program include focus.

stapes in the CRM process

Establishing CRM goals


Educating other departments
Assembling customer information
Designing the data model
Vendor study
Selecting the CRM solution
Establishing authority and responsibility
Pilot projects
Communication with customers’ trough direct male, electronic mail etc
Customer survey
Customer satisfaction program
Collection of customer information
Provision of customer information to employees
Usage of customer information in business activities
Feedback
Analyze
Documenting a new process
Implementing final methodology.

36
37
CHAPETR NO.7
DATA
ANALYSIS
&
INTERPRETATIO
N

38
DATA ANALYSIS AND
INTERPRETATION

1) Which store first comes to your mind when you


think of purchasing a product?
Store Male female
preference
Food bazaar 35 10
Vishal mega 14 4
mart
Other retailers 26 11

ANALYSIS:
From the survey, from some respondents, 45 % of them gave 1st
preference to Food Bazaar 18% of them gave preference to Vishal
Mega Mart and 37% were gave to other retailer .

39
INTERPRETATION
Most of the customers are given 1st preference to Big Bazaar compare
to other retailers.

2) From which source did you come to know about


Big Bazaar outlet?

ANALYSIS
From the above graph i can come to know that, among 100
respondents, 23% of them come to know about food Bazaar through TV
advt., 34% of the respondents told that through Hoardings, 31% of
them through news paper, and 12% came to know through bus painting

INTERPRETATION

40
Hoarding is the most influencing factor which is responsible for
awareness of food Bazaar.

3) Are you aware of promotional offers conducted by


big bazaar?

Response No of respondents Percentage


Yes 67 67%
No 33 33%
Total 100 100%

41
ANALYSIS:
Among the 100 respondents, 67% of them they are aware of
promotional offers, 33% told they have told that they are not aware.

INTERPRETATION:
87% of customers are aware of promotional activity in the big bazaar.

4) Please choose below the factor which attracted you


most at the Food Bazaar?
No of percentag
Rates respondents e
51%
Offer 51
9%
Service 9
23%
Quality 23
Availability of 17%
products 17
100%
Total 100

42
Analysis
Among 100 respondent 51% of customer they have told that they are
attracted by the offers and 9% of them told that they are attracted by
service and 23% of them told that they are attracted by quality and
only 17% of them told that only for availability of products

Interpretation:
Most of the people attracted towards big bazaar only for the
promotional offers. So offer is the most influencing factor among those.

5) Which of the following factors influence in your


purchase decision?

No of percentag
Rates respondents e
43%
Offer 43
Servic 11%
e 11
Qualit 21%
y 21
Effecti 25%
ve
advert
iseme
nt 25
100%
Total 100

43
ANALYSIS:
Among 100 respondent 43 of them told that offer is responsible for their
purchase decision and 9 of them told that service and 23 of them told
that quality an only 25 of them told that effective advertisement

INTERPRETATION:
Among those factor offer is the emerging factor which is responsible for
purchase decision of buyers

6) Do you think the promotional activity of food


bazaar of Big Bazaar gives you clear message?
Response No of respondents Percentage
Yes 77 77%
No 23 23%
Total 100 100%

44
ANALYSIS:
Among 100 respondent 77 of them told that the promotional activities
of big bazaar gives clear message and 23 of them told that they do not
understood.

INTEPRETATION:
Most of the people highly agree that promotional activity of big bazaar
gives clear message

7) Will you advise anybody to visit food bazaar of Big


Bazaar in your future shopping?

Response No of respondents Percentage


Yes 92 92%
No 8 8%
Total 100 100%

45
ANALYSIS:
Among 100 respondents 92 of them told that they will advise others to
visit to food bazaar of big bazaar in future shopping and only 8 of them
told that they do not advise.
INTEPRETATION:
Most of the respondent they would like to advise others in future
shopping.

8) Looking at the promotions of food bazaar does


your purchase pattern changes?

Response No of respondents Percentage


Yes 83 83%
No 17 17%
Total 100 100%

46
ANALYSIS:
Among 100 respondent 83 of them told that these promotional offers
changes their purchase pattern and only 17 of them told do not change.

INTERPRETATION:
Most of the customer believed that promotions is responsible for their
purchase decision

9) Would you like to make your purchase under


unexpected offers?

Response No of respondents Percentage


Yes 94 94%
No 6 6%
Total 100 100%

47
ANALYSIS:
Among 100 respondents 94 of them they are interested to buy products
under unexpected offers and only 6 of them told that they do not buy.

INTERPRETATION:
Most of the customer interested to buy under unexpected offers only.

48
CHAPTER NO.8
FINDING
• From the sample size of 100 samples it is found that the various
products are well positioned in the minds of customers because 77% of
the respondent’s preference is food Bazaar for their shopping.

• Among the 100 respondents, 87% of them told that they are
aware of promotional activities of big bazaar .only 13% of thetold
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

49
• Among 100 respondent 35% of them agree that offers is the
most emerging factor influencing purchase decision and only 23%
of them told that service 25% of told that quality and finally 17%
of them told that effective advertisement is responsible for the
purchase decision.
• Among 100 respondent 87% of them told that promotional
activities of big bazaar gives clear message and 13% 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 73% them told that promotions of big
bazaar changes their purchase pattern and only 27% 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.

CHAPETR NO.9

50
SUGGESTION

SUGGESTIONS
PLACE
The new store should have a central location in the market because
customers will not prefer one store over the other. They would simply go
the most accessible one. Proximity of location to places like coaching
institutes, offices etc would be an added advantage. The store should be
spread over an area of at least 900 square feet. The store should be such
where customers can roam around and feel the products for themselves.
Survey revealed that many customers consider shopping as time pass,
hence they take their time in selecting items. So there should be enough
walking space in between product racks. Over the counter purchase is not
desired anymore. The place should be well lit and air conditioned. All the
products in all sizes should be on display.

51
PRODUCT
Product variety is a big factor in determining customer response. The
owner should not limit itself to brands of few companies only. The range
of items available should suit the local requirements. There should be a
balance between branded goods and local products. The shelf space
should be efficiently utilized to give maximum exposure of the product to
the public. The store should include beauty products in its display because
women are chief buyers in departmental stores. The products should be
clearly categorized as high-end or low-end. The customers should be
assured of quality of non-branded items like loose packs of wheat flour,
pulses etc. Diversification of product type is recommended. It should stock
perishable food items, instant eatables, FMCG goods like toiletries.

PRICE
Price of goods depends on the success of the store over a period of time.
Margins are very tight. It is not possible for the owner to match the prices
and discount schemes of retail chains. The store should start off with
inaugural discounts to get attention. These discounts should be slowly
discarded. The owner should recognize high potential customers and give
some relief off the MRP mentioned to gain loyalty. This will help the store
in long term. One way to offer better prices is by having local products
like biscuits etc which are of assured quality. This satisfies the demands of
low-end customers and local products also give better margins. The store
needs to make sure that no other kirana shop is offering considerable
discount compared to its own prices
.

52
PROMOTION
A departmental store which operates in a particular locality does not need
full fledged promotional campaigns. But for a start up, the store should
distribute leaflets in local newspapers to create awareness among
residents. The leaflet should include special features of stores with
maximum emphasis on inaugural discounts on items. This should help it
create a favorable ‘word of mouth’ scenario. Another way is to talk to
general public and ask for their suggestions on improving the layout. In
this way, people will feel happy about going to the shop and shopping.
The store should use in-store advertising to make best use of large floor
space by putting up discount boards inside the store above a particular
product as well as just outside the shop.

In this way, we can make use of the marketing mix for a new venture
which belongs to the unorganized retail sector. Application of the best
marketing practices of organized retail stores combined with benefits of
accessibility of local kirana shops helps to ensure success.

53
CHAPETR NO.10
CONCLUSION

CONCLUSION

Indian food 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 consumer’s preferences are changing & they are moving from
Traditional Kirana stores to Modern Retail outlet. It’s the main challenge
to the Modern retail outlets to attract the customers towards them from

54
that of competitors. 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.

55
CHAPETR NO.11
LIMITATION

LIMITATIONS

• The study was restricted to only the customers of food sector of


BIG BAZAAR.

• 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

56
• Findings are related to particular areas.

57
CHAPETR NO.12
ANNEXURE

ANNEXURE
Questionnaire

1) Which store first comes to your mind when you think of purchase a
product?

a. food Bazaar b. Vishal mart


c. other retailer

2) From which source did you come to know about food Bazaar ?
a. T. V. advertisement b. Hoardings.

c. bus paintings d. news paper e. word of


mouth

58
3) Are you aware of promotional activities conducted by food Bazaar in
Nagpur ?

a. Yes b. No.

4) Please choose from below the factor which attracted you most at
food Bazaar?
a. Offer b. service c. quality

d. availability of products

5) Which of the following factors influence in your purchase decision?

a. Offers b. Effective services c. Quality of


products

d. Effective advertisement

6) Do you think the promotional activity of food Bazaar gives you the
clear message?

a. Yes b. No

7) Will you advise anybody to visit food bazaar of Big Bazaar in future
shopping?

a. Yes b. No

59
8) Looking at the promotions of food Bazaar does your purchase pattern
changes?

a. Yes b. No

9) Would you like to make your purchase under unexpected offers?

a. Yes b. No

10) Any valuable suggestion

……………………………………………………………………………………………

Signature of Customer

60
CHAPETR NO.13
BIBILOGRAPHY

BIBLIOGRAPHY

Reference Books

o Marketing Management: Philip Kotler


o Retail Management: Bajaj and Srivastav

61
JOURNALS AND MAGAZINES

o Business World
o Business Today

Websites

http://www.agencyfaqs.com/

www.google.com
www.pantaloon.com
www.wikipedia.com
www.timesofindia.com
www.bigbazar.com

62

You might also like