Professional Documents
Culture Documents
Customer Relationship Management in Retail Sector Big Bazaar
Customer Relationship Management in Retail Sector Big Bazaar
Acknowledgement
I would like to express my deep sense of gratitude towards the Faculty and the seniors
around us, for their guidance and encouragement throughout the period of the project
study. I am indebted to their guidance, spirit and valuable suggestions.
I would also like to thank BIG BAZAAR and its employees, who has been a continuous
source of inspiration for me throughout the curriculum.
I would like to thank everyone who has been a help directly or indirectly leading to the
successful completion of the study report.
ABHINAV KATARIA
Declaration
I hereby declare that I have carried out Research Project on the topic entitled Customer
Relationship Management in Retail Sector (Big Bazaar) in NCR.
I further declare that this project work is based on my original work and no part of this
project has been published or submitted to anybody.
TABLE OF CONTENTS
Sr. No.
Topic
Chapter 1
1.1
1.2
1.3
1.4
1.5
Chapter -2
2.1
2.2
2.3
2.4
2.5
Introduction
Significance
Managerial usefulness of the study
Objective
Scope of the Study
Methodology
Chapter 3
Conceptual Discussions
Chapter 4
Data Analysis
Chapter 5
Annexure
Bibliography
CHAPTER-1
INTRODUCTION
The Indian retail industry is now beginning to evolve in the line with the transformation
that has swept other large economies. The liberalization of the consumer goods industry
initiated in the mid-80 and accelerated through the 90s has begun to impact the structure
and conduct of the retail industry.
The concept retail which includes the shopkeeper to customer interaction, has taken many
forms and dimensions, from the traditional retail outlet and street local market shops to
upscale multi brand outlets, especially stores or departmental stores.
The objective being to assess the various parameters that influences a buyer to visit or
shop at departmental store thereby contributing to its turnover (in terms of sales and
profits) hence leading to its overall success.
The extensive research brought me to conclude that departmental stores are soon
emerging on the top priority lists, amongst the shopping spree in Delhi and NCR, as they
seem to derive immense pleasure of convenience and exposure to variety under one roof,
in their extremely busy lives, when they dont have time for things.
Though some of the customers perceive departmental stores to be expensive and only
high income categorys cup of tea, the stores make constant efforts to induce them to at
least visit the store at once during the sale period, or discount offers.
The development of organized retail is dependent on the efforts of several agencies and
institutions. A glimpse of the last 2 decades of the previous century proves illuminating.
Large-format retailing started with outlets like Vivek's and Nalli's in Chennai and
Kidskemp in Bangalore, and, at another level, with manufacturer-retail brands like Bata,
Bombay Dyeing, and Titan.
Government:
The first among these is the government. In a country as big as India and with as many
states as ours, it is imperative that the Central government and all state governments
bring in Value Added Taxation or a unified taxation system to ensure that the tax-regimes
are the same across the country.
The laws governing retail real estate should also be looked into, so that it is possible to
develop retail-estate beyond the city-limits. Apart from providing entertainment and retail
opportunities, this will also decongest the city center and facilitate the development of
suburbs. The relevant rules should also be amended to allow retail-stores to operate 7
days a week, 12 hours a day.
Nuclear Families:
Given the hours most urban consumers keep at work, and keeping in mind the increase in
the number of nuclear families, this may, indeed, make sense. This will also help people
enjoy their evenings, out at malls.
Developers:
The second group, whose participation is essential in making retail a boom-sector in this
millennium, comprises developers. Most properties are developed without considering
the end user; thus, we sometimes find highCeilinged offices and low-ceilinged retail stores. Often, the shopper's convenience is not
taken into consideration while the property is constructed.
Manufacturers:
There's a lot at stake here: even so early in the 21st Century, India is too large a market to
be ignored by transnational retail giants. From the manufacturing company's perspective,
the focus should be on producing good products, and forging relationships with organised
retail. Manufacturers need to draw a plan of producing quality products and tie in with
retailers. Indeed, the birth of organised retail will also engender the creation of private
labels and store-brands. Thus, if a manufacturing company lacks the resources to build a
brand, it can supply to a retail-chain that has the resources to create a brand of its own.
Indian Consumers:
And even as these developments were taking place, the Indian consumer became more
mature. Customer-expectations zoomed. Thus, at the beginning of the New Millennium,
retailers have to deal with a customer who is extremely demanding. Not just in terms of
the product-quality, but also in terms of service, and the entire shopping experience.
Today, the typical customer who shops in a retail outlet compares the time spent at the
check-out counter with that at an efficient petrol station, and the smile of the counterperson to that decorating the face of a Jet Airways' crew member. To cope with the new
customer, manufacturers have to focus on product quality and brand building. And
retailers, in turn, have to focus on the quality of the shopping experience.
In this millennium, like in the last, customers will want to spend time with their family
and friends. They may like to visit an outlet on weekends where everything will be
available under one roof. India will benefit from these developments
because of increased consumption through retailing and the corresponding increase in
employment created by retailing.
Retail organizations exhibit great variety and new forms keep emerging. There are store
retailers, non store retailers, and retail organizations.
Consumers today can shop for goods and services in a wide variety of stores. The bestknown type of retailer is the department store. Japanese department stores such as
Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature
art galleries, cooking classes, and childrens playgrounds.
The success of the retail stores, therefore, depends on customers reaction to the retailing
mix which influences the profits of the store, its volume of turnover, its share of the
market, its image and status and finally its survival.
10
Urban
Suburban
Rural
New retail forms and combinations continually emerge. Bank branches and ATM
counters have opened in supermarkets. Gas stations include food stores that make more
profit than the gas operation. Bookstores feature coffee shops.
The electronic age has significantly increased the growth of non store retailing consumers
receive sales offers in the mail and over television, computers, and telephones, to which
they can immediately respond by calling a toll-free number or via computer.
11
Smaller independently owned stores have become particularly heated. Because of their
bulk buying power, chains get more favorable terms than independents, and the chains
large square footage allows them to put in cafes and bathrooms.
Todays retailers are moving toward one of two poles, operating either as mass
merchandisers or as specialty retailers. Superpower retailers are emerging. Through their
superior information systems and buying power, these giant retailers are able to offer
strong price savings. These retailers are using sophisticated marketing information and
logistical systems to deliver good service and immense volumes of product at appealing
prices to masses of consumers.
Many retailers are even telling the most powerful manufacturers what to make; how to
price and promote; when and how to ship; and even how to reorganize and improve
production and management. Manufacturers have little choice: They stand to lose 10 to
30 percent of the market if they refuse.
12
These three are among the most common ways of making the goods available to
consumers. But in India the three layered system of distributor, wholesaler and retailer,
forms the backbone of the front-end logistics of most of the consumer-good companies.
There are a number of reasons behind this fragmented retail market. Some of the major
reasons being:
13
High taxes.
No exposure to media.
14
"CRM is the business strategy that aims to understand, anticipate, manage and
personalize the needs of an organization's current and potential customers" -PWC Consulting .
CRM is a business strategy, one that puts the customer at the heart of the
business.
Thats nothing new I hear you say, and you would be right. Good business
people have always understood the relationship between happy customers that
come back again and again and creating long term, sustainable profitability. Big
Bazaar has realized this and applied this to effect.
One just needs to think of the local shop owner who knew everyone of his customers
names, birthdays and particular ailments to prove that point. What is new is that there
now exists the technology to enable this customer-centricity on a much larger scale.
15
The last couple of years have seen the term broaden to encompass a more strategic
approach and the investment of billions of dollars worldwide into CRM solutions and
services has followed.
16
It is estimated that the global market for CRM services and solutions is currently worth
$148 billion. That means a lot of choice when selecting your technology - from webbased solutions aimed at small businesses with less than 10 employees to solutions
suitable for multi-national enterprises with millions of customers.
The Future
CRM has already made a big impact in the world of Customer Service and will continue
to do so. As more and more companies become customer-centric those that fail to do so
will lose competitive advantage. As technology increases to develop at a startling rate the
key emphasis will be how we can fully utilize it within our business.
However let's not lose sight of the fact that Customer Relationship Management is about
people first and technology second. Thats where the real value of CRM lies, harnessing
the potential of people to create a greater customer experience, using the technology of
CRM as the enabler.
17
By applying this methodology Big Bazaar learned more about customers' needs and
behaviors in order to develop stronger relationships with them. They implemented CRM
as a process that brought together lots of pieces of information about customers, sales,
marketing effectiveness, responsiveness and market trends.
CRM helps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers.
18
Problems can arise when products were sold that didnt fit company's profitability
strategy such as selling a customer one product when another would be better for
the customer and more profitable for you.
Difficulty and Delay in Updating Pricing and Product Information
When the sales force is relies on incomplete product, pricing and customer
information, then they're probably not selling the most profitable products you
offer.
Customers prefer a combination of differing channels in which to deal with your
company. Self-service on the web can even be done for complex products. Plus,
self-service on the web offers retail banks the opportunity to shift cost out to the
customer.
The degree of customer satisfaction you deliver determines the level of long-term
success you will achieve in business. - --- Training Mantra for Sales Force
19
experience with a competitor when they know they will get more than they expect from
you.
PROCESS OF CRM
Customer Relationship Management (CRM) is the process of bringing the
customer and the company closer together. There are many different areas in
which Customer Relationship Management can be implemented. The goal of
21
CONSUMER BEHAVIOR
22
23
Brands: Consumers who think about the possibility that their purchase
decisions will be wrong are more likely to choose better known brands. In a
test case, Simonson showed that consumers debating between a better known,
more expensive brand and a lesser-known, less expensive brand expect to feel
greater regret if they err by choosing the cheaper option. Indeed, after thinking
about the possibility of regret, consumers were more likely to select the betterknown brand. Kodak film has capitalized on this finding with an advertising
campaign that asks consumers to consider how they would feel if they bought
cheap film and their pictures didn't turn out.
24
second group was asked to pick three snacks -- one for immediate consumption
and one for each of the next two weeks. Both groups were told that they could
pick the same snack as many times as they wished. Those in the first group tended
to select the same snack all three times, whereas most in the second group
selected three different snacks.
Product Modifications: Modifying a product with a feature or premium
that is of little or no value to the consumer, even without raising the price,
may actually decrease sales. When consumers are uncertain about their
preferences, a product that offers an unneeded add-on (such as an offer to
purchase a Pillsbury Doughboy collector's plate) provides them with a
reason for rejecting it.
While marketing professionals can use these findings to influence consumer
decision making, consumers, too, can benefit by understanding their own
behavior. "One of the points of our research is to inform consumers about some of
the factors that influence their decisions," Simonson says. "With such knowledge,
they may be able to make better, more thoughtful decisions."
25
Strength
Prime location
Large floor space allowing for better visual merchandising
Large area also allows to stock a large variety of products under one roof
Experienced and competent management
Highly trained and motivated sales force
Brand equity
Large scale operations in various cities throughout the country allows them to
reap the benefits of economies of scale
26
Weakness
Large scale of operations sometimes acts as a barrier to personalized customer
relations
Large scale operations lead to reduced flexibility by increasing the amount of
overheads and a huge commitment in terms of fixed costs
A large organization structure leads to delayed decisions. This can prove fatal
for a business in the dynamic fashion industry. Mumbai, this fact sometimes
results in delayed decisions in adapting to changing market trends
Opportunities
Apart from the metros, cities like Ahmadabad, Pune, Lucknow, Indore and
Coimbatore have shown substantial retail presence. Most sport modern retail
formats like supermarkets, department stores and specialty chains. These
markets are expected to show exponential growth in the next few years. Thus
Food Bazaar has the opportunity to explore new markets
According to the Consumer Outlook study, consumers are generally satisfied
with the service that organized retailers extend to them. More importantly,
they are increasingly regarding these organized retailers as providing `valuefor-money. These findings indicate that large retailers will capture most of
the higher consumer spending
Increasing penetration of the internet into Indian homes has provided Food
Bazaar Mall to break the geographical barriers and to increase their customer
27
base. The entry into online retailing, would, in fact, expand the product
categories available to the consumer
Threats:
The time when retailers had to worry about competition only from their peers
down the street has come to an end. Food Bazaar is now facing increased
competition in the form of international retail chains that are making a beeline
towards the highly potential Indian markets. Moreover many big Indian
business houses are also vying a space in the Indian retail scene .
28
20
NO
CANT SAY
29
25
20
15
Series1
10
5
0
YES
NO
CAN'T SAY
Result:
From the above table it is clear that customers are satisfied with the services of Big
Bazaar because out of 30 customers 20 has given the positive answer in favor of Big
Bazaar.
18
NOT HELPING
30
RUDE
20
18
16
14
12
10
8
6
4
2
0
E
RU
D
PI
NG
HE
L
NO
T
HE
L
PI
NG
Series1
Result:
From the above table it is clear that customer are satisfied with the attitude of the
shoppers .Out of 30 customer all 18 customer are satisfied.
3. How would you rate the Shopper Assistants behavior on the scale of
five?
5
10
4 14
3 05
3
2 1 2
31
1 00
1
5
4
Series1
Series2
2
1
0
10
15
20
Result:
Out of 30 customer,11customer have given the 5 marks
to shopper . Assistant behavior while 14 has given 4 marks&5 has given 3 marks
20
NO 8
CANT SAY
32
can't say
no
20
yes
10
15
20
25
Series1
Result:
Out of 30 customers ,18 have told that they like the layout of Big Bazaar while 8 told that
they do not like very much.
DELIVERY SERVICES
TRANSPORTATION FACILITY
18
33
20
15
10
Series1
18
0
Cr.Facility
Tr.Facility
Dl.facility
Result:
SOMETIMES
34
NEVER
20
15
10
Series1
18
3
EV
ER
N
M
ET
IM
ES
SO
AL
W
AY
S
Result:
Out of 30 Customers ,18 customers said that Big Bazaar always provide
better services &it exceed their expectation.
7. Do you think that Big-Bazaar follow the ethical Mktg. Practices like
right pricing, right quality and right quantity?
YES
25
NO
CANT SAY
35
30
25
20
15
Series1
25
10
5
0
Yes
No
0
Can'tsay
Result:
Out of 30 customer,25 customers have told that BigBazaar following the
ethical marketing practices.
20
QUALITY
10
36
QUALITY
33%
PRICE
67%
Result:
Customer said that when they think about Big Bazaar they think about
price. out of 30 customer 20 customer have told this while 10 customer said
that they think about quality.
GOOD
18
WORST 0
37
SO-SO 3
BAD
18
20
15
9
3
0
BA
D
SO
-S
O
O
G
EX
C
EL
LE
NT
O
D
RS
T
W
O
10
Result:
Out of 30 customers, 9 customers said that Food Bazaar theme is excellent
while 18 customers said that it is good &3 customers said that it is ok.
RETAILOR SURVEY
10. What is the most important criteria of selection for their Store Assistant
and Store Manager?
1
Pleasing Personality
Good Communication
38
Team Work
10
9
8
10
7
0
4
5
3
2
1
0
10
12
Result:
Out of 20 retailers,10 has given importance to the store manager who have
the quality of identifying customer need, while others have given importance
on work & good communication skills.
11. Do you display all the entire stock on the rack or some amount is kept
for contingence? (Inventory availability)
Applicable to all product 14
Only to FMCG
39
7
6
5
4
4
8
14
2
1
Result:
Out of 20 retailer ,14 have told that they show all the product to customer,
while 4 have told that show some product to the customer.
Price 2
Customer preference 12
40
Product visibility 4
6
4
5
4
12
10
15
Result :
Out of 20 Retailer, 12 has said they use the customer preference for point of
purchase counter while other said that they use brand &product
visibility.
10
Radio jingle
41
Advertising
Banner
in
g
Ad
ve
rti
s
nn
er
Ba
jin
gl
e
Ra
di
o
Ne
ws
pa
pe
r
12
10
8
6
4
2
0
Result :
Out of 20 retailer ,10 has told that they use Newspaper as their main tool for
promotional .
Loyalties benefit
42
Customer
10
10
10
15
Result :
20 Out of Retailer,10 retailer said that they get the customer satisfaction by
customer database while other have said that they use data of number of
repeat purchase.
With customer
43
interaction of manager
7
6
5
4
3
2
1
0
10
15
Result :
Out of 20retailer, 12 have told that analyzing the customer satisfaction
through the feedback of customer.
44
Findings
In this survey the findings are given below:
1. Most of the stores are targeting almost all the segments of the society with their USP
being Price benefit
45
RECOMMENDATION
1) Convert your customers into publicity agents. Develop an incentive for them to tell
associates and friends about the value of your products or services. An endorsement
46
from them is more effective than any amount of advertising - and it is much cheaper.
2) Surprise your customers with unexpected value. If you sell products, include an
"unadvertised bonus" with every order. If you sell services, get into the habit of doing
something extra for every customer or client without charging for it.
3) Reward them each time they refer someone who becomes a customer. Your reward
can be as simple as a credit toward their next order from you.
4) The management of Big Bazaar can improve their understanding of the role and
capabilities of advertising to improve customer relation and enhance loyalty. This
understanding should in turn results in a more effective and more efficient advertising
campaign.
5)Visual Merchandising: It is often seen that the people come to the store to browse
rather than buy.
6) Schemes: In store Promotions: The people visiting the store should be encouraged
to visit the store again and again. So it is necessary to delight the shoppers with the
shopping experience. It has been observed in
CONCLUSION
Customer Service is a critical factor for keeping your clients coming back and ensuring
theyll refer you to others.
47
1: Growing your business will be a difficult task at best if you dont perform, meet
and exceed your clients expectations, and provide service that creates customers for
life.
2: Customer service is all about the customers perception. You have to do more than
just get the job done. You must deliver on all the things (big and small) that affect the
relationship with your client. Consider opportunities for improvement in the
following areas.
5: Organization: Are you organized? Punctual? Reliable? When you show up to work
with your clients, have you done the work and are you prepared to make them feel
comfortable and taken care of? Even though youve done it hundreds, maybe
thousands of times before, do you take the time to organize and prepare to make it the
best client experience possible?
48
6: Committing to the Little Things: Dont ever dismiss the power of all the little
things. Together they can make all the difference and really separate you from the
competition. Returning calls and emails in a timely manner. Providing useful
information to folks on a regular basis. Showing appreciation for your clients through
things like thank you notes, exclusive client-only briefings, and open house, etc.
Clearly these are not the only relevant areas for creating great customer service, I
assure you. But these were some of the Factors which might
Provide a boost to the sales figures, though I am sure the organization would have
already implemented most of these measures already.
49
Product Branding
Price
Packaging
Cost of goods
Product Design
Business Expenses
Assortment
Gross Margin
Services
Profit
Promotion
Distribution
Advertising
Logistics
Personal Selling
Store Location
Sales Promotion
Site Evaluation
Public Relations
Transportation
Visual Merchandising
Storage of goods
They seem to follow this to the core for effective Customer reach and encourage
customer loyalty.
50
ANNEXURES
QUESTIONAIRE ON CUSTOMER-RELATIONSHIP
MANAGEMENT IN RETAIL-SECTOR (BIG BAZAAR)
CUSTOMER BASED SURVEY
1.Are you satisfied with the services provided by Big-Bazaar?
YES
NO
CANT SAY
NOT HELPING
51
RUDE
3.How would you rate the Shopper Assistants behavior on the scale of five?
5
NO
CANT SAY
TRANSPORTATION FACILITY
DELIVERY SERVICES
7.How often do Food-Bazaar services exceed your expectations?
ALWAYS
SOMETIMES
NEVER
8. Do you think that Food-Bazaar follow the ethical Mktg. Practices like right pricing,
right quality and right quantity?
YES
NO
CANT SAY
EXCELLENT
GOOD
SO-SO
NAME.
BAD
WORST
ADDRESS
52
QUESTIONAIRE ON CUSTOMER-RELATIONSHIP
MANAGEMENT IN RETAIL-SECTOR (Big BAZAAR)
RETAILOR BASED SURVEY
1.What is the most important criteria of selection for their Store Assistant and Store
Manager?
Pleasing Personality
Good Communication
53
Team Work
2.Do you display all the entire stock on the rack or some amount is kept for contingence?
Applicable to all product
Only to FMCG
3. Rate the following options as per your priorities while deciding the layout for store?
Security
Computerization
Parking
Air-conditions
Price
Customer preference
Product visibility
5. What is the preference order for promotional activity to create customer awareness?
Newspaper
Radio jingle
Advertising
Banner
localities benefit
customer database
54
Bibliography
55
Marketing Management
- Philip Kotlar
Research Methodology
- C. R. Kothari
Retail Marketing
J.A.Lamba
www.indiainfoline.com
www.google.com
www.businessline.com
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