IMPACT OF MEGA PROMOTIONAL EVENTS ON CONSUMER BUYING BEHAVIOUR

PROJECT REPORT
Submitted in partial fulfilment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION 2011

NAME ENROLMENT NO

:
:

PREETAM PRIYADARSHI A9486PBA6022

Under the supervision of (Prof. Parsuram Biswal)

INSTITUTE OF DISTACE EDUCATION

UNIVERSITY OF MADRAS

BONAFIDE CERTIFICATE

INSTITUTE OF DISTACE EDUCATION

UNIVERSITY OF MADRAS

Certified that this is the bonafide project Work done by Preetam Priyadarshi with Enrolment Number A9486PBA6022 of final year of M.B.A. Degree course in Institute of Distance Education, University of Madras, Chennai -600 005 during the Year 2011

Date: 27.05.2011 Examiner 1.

(Prof Parsuram Biswal)

Examiner 2.

Retail strategy (Sabse Saste 5 din)

TABLE OF CONTENTS

Introduction to the retail chain Mission vision ,core values Swot analysis Purpose of the study Research design Analysis and interpretation Findings Suggestion and recommendation

INTRODUCTION
BIG BAZAAR is a chain of hypermarket in India, which caters to every family s needs and requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. and is an answer to the United States Wal -Mart. BIG BAZAAR has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. BIG BAZAAR group offers more than 100 stores all over the country with an amalgamation of Indian bazaars feel an d touch with a convenience and choice of the modern retail facilities. The retail format of the BIG BAZAAR group includes Aadhar, Rural & Home-Town retail chain, Ezone home-improvement chain, sportswear retailer, depot and music chain is few among others.

History of BIG BAZAAR The worldwide country chain, BIG BAZAAR, is formed by CEO of Future Group, Mr. Kishore Biyani. The group do not promises more than what it delivers. Their basic attraction associated with reasonable prices is their Unique Selling Price. Though, the products BIG BAZAAR stores stocks might not be advanced, but the customers are assured to avail the worth of the money spent by them. In 2001, the group opened its first store on the VIP Road, Calcutta, which was the primary departmental store offering regulated services of parking, steel vessels, apparel, electronics etc under the one roof at the competitive prices. BIG BAZAAR has become a massive hit with lower middle-class and middle class people as a major client base. At present, the Future Group comprises various formats and brands like Pantaloons, F123, Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart, HomeTown and Central. The BIG BAZAAR has several stores located all over the India, among that Chennai, Hyder abad, Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and Delhi is those metro cities where the stores of BIG BAZAARs are located.

MISSION, VISION & CORE VALUES

Group Vision
 Future Group shall deliver Everything, Everywhere, Every time for Every

Indian Consumer in the most profitable manner .

Group Mission
 We share the vision and belief that our customers and stakeholders shall
be served only by creating and executing future scenarios in the consumption space leading to economic development.

 We will be the trendsetters in evolving delivery formats, creating retail

realty, making consumption affordable for all customer segments classes and for masses. for

 We shall infuse Indian brands with confidence and renewed ambition.  We shall be efficient, cost- conscious and committed to quality in
whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

Core Values
Leadership: To be a leader, both in thought and business. Respect & Humility: To respect every individual and be humble in our conduct. Introspection: Leading to purposeful thinking.

Openness: To be open and receptive to new ideas, knowledge and information . Valuing and Nurturing Relationships : To build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: To be flexible and adaptable, to meet challenges. Flow: To respect and understand the universal laws of nature.

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Need of the study

Consumers have started trickling back to malls and department stores as the economy is stabilizing, say many large retailers, who expect sales to further improve in the months ahead. Worst is over for retailers and the other sector as well, whose market size has been estimated at about $25 billion (Rs1.2 trillion), is likely to witness slow and steady growth. To pace up with the slow and steady growth BIG BAZAAR the largest hyper market has once again come up with their special Republic Day offer of Sabse Saste 5 Din from January 22 to 26, 2011, at its all 120 BIG BAZAAR outlets across the country. BIG BAZAAR has been pioneer in providing these types of discounte d offers across the country. Our study aims to analyse the impact of such type of promotional events on the turnover & on purchase decision of the consumers. This year, BIG BAZAAR is eyeing 25-30 per cent rise in sales during these five days, as compared to the same event last year. As a promotional event BIG BAZAAR is conducting these types of other events to like newspaper and trash exchange, Mega Diwali offer etc. During these types of offer the focus of the group was in achieving turnover rather than on customer service. Our study aims in analysing the driving forces for a customer during such type of events.

Research design

Statement of the problem:

 Major driving factors for the consumers during mega promotional event.  Difference in the purchase volume during the mega promotional event.
Objectives of the study:

 To study the change in the strategy of retailers during special promotional events.  To study the changes in the consumer purchasing decision during special events.  To study the various type of promotional activities.  To identify significant characteristics of the visitors.  To study the growth in revenues due to this mega promotional event in
comparison with last similar type of event.

 To identify driving factors for the customers to visit the store during such
event.

 Analyze problems faced by the customer during such type of promotional

events.

 To identify and understand the significance of mega promotional events

in the current business environment.

 To identify strategies for being a market leader.

Data collection and tools & Field

 Primary data  Secondary data.
Data collection tools used Primary data: Collected by means of

ork

y Structured questionnaires by personal interviewing. y Observation technique. Secondary data: Collected with the help of y Newspapers y Internet In my study more weight age has been give to primary data because it provides me with the actual insight about the consumer behaviour. Secondary data has just been used to make certain comparison.

Field work.
Activity comprises of:

 Two days of survey at two different BIG BAZAAR outlets located at SATYANAGAR & PATIA.  Customers opinion was taken through a structured questionnaire by personal interviewing.  Survey was conducted during the five days of mega promotional event.  Customers were interviewed at the exit gates.

Sampling procedure and sampling unit size

There are different types of sampling design based on the two factors:

 The representation technique  The element selection technique

On the sample may be probability sampling or it may be non -probability sampling Probability sampling: Under this sampling every item of the universe has a chance of inclusion in the sample Non probability sampling: Is a sampling procedure which does not afford any basis for estimating that each item in the population has being included in the sample. So the type of sampling technique used in the study is :

 Convenience sampling/non-probability sampling

Sample size Sample size 155 respondents

(Collected during the mega promotional event dated 2 2nd Jan-26th Jan from two BIG BAZAAR outlets located at Satyanagar & Patia.

Limitation to the study

Collection of data related to marketing strategy of BIG BAZAAR is a difficult task because this information is very rarely available with secondary resources therefore it requires more time and lot of efforts 

Some of the limitations are:

 Concentration only a single brand of hypermarket i.e. BIG BAZAAR  Study is restricted to 2 stores in Bhubaneswar.(located in Satyanagar & Patia.)  Data collection is restricted to single promotional event 5 days of offer.  Restriction of the timings for the collection of the data by the HR Managers of the store.  Customers were not allowed to be surveyed inside the store premises.  Customer unwillingness to respond to the questions.


ANALYSIS AND INTERPRETATION OF THE DATA

 Dis ibution according to the age and gender

0-20 20-30 30-40 40-50 50-60 60-70 TOTAL 0 69 50 25 6 5 155 0 44.5 32.25 16.12 3.89 3.24 100

AGE WISE DISTRIBUTION

25

5 69

50

20-30 yrs

30-40 yrs

40-50 yrs

50-60 yrs

60-70 yrs

Int p t tion: On the basis of the finding following can be analysed  For age group of 0-20 the sample size of 155 doesn t contain any customer of this age group.  For age group of 20-30 44.5 % of the customer belong to this age group.  For age group of 30-40 32.25% of the customer belongs to this age group.  For age group of 40-50 16.12% of the customer belong to this age group.
` a b Y

TS

PARTICULARS

% wis

W W XV V

 Gender wise distribution.

c
PARTICULARS MALE FEMALE TOTAL 121 34 155 % wis

78.07 21.93 100

GENDER
34

121

MALE

FEMALE

Int p t tion: On the basis of the finding following can be analysed  78.07 % of the customers were males.  21.93% of the customers were females. (Respondents were mainly the head of the family so in the finding male dominance was reflected)

e e fd d

Q1) How much distance you travelled to come to B G BAZAAR today?

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PARTICULARS LESS THAN 5 KM B/W 5-10 KM B/W 10-15 MORE THAN 15 TOTAL 70 57 17 11 155

DISTANCE TRAVELLED
11

17
70

57

LESS THAN 5 KM

B/W 5-10 KM

B/W 10-15

Int p t tion: On the basis of the finding following can be analysed  For less than 5 kms 45.16% of the customers have travelled less than 5 kms to come to B G BAZAAR for the mega promotional event  b/w 5-10 kms 36.79% of the customer have travelled between 5-10 kms to come to B G BAZAAR for the mega promotional event
r s t u

% wis

45.16 36.79 10.96 7.09 100

MORE THAN 15

p p qi i

Q2) What is your occupation?

v
PARTICULARS PUBLIC/PRIVATE SECTOR EMPLOYEEE BUSINESSMAN/WOMAN GOVERNMANT EMPLOYEE STUDENT TOTAL 92 22 21 20 155 %wis

59.37 14.19 13.54 12.9 100

OCCUPATION

20 22

21

92

GOVERNMANT EMPLOYEE BUSINESSMAN/WOMAN

PUBLIC/PRIVATE SECTOR STUDENT

On the basis of the finding following can be analysed  Government employee 13.54% of the consumers are the government employees  Public/private sector: 59.37% of the consumers are either public or private sector employees.  Business man/woman:14.19% of the customers are self employed  Students: 12.9% of the consumers are students.
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Q3) What is your monthly family income?

MORE THAN 30K BETWEEN 15K-30K BETWEEN 10K-15K LESS THAN 10K NOT AVAILABLE TOTAL

70 50 23 9 3 155

45.16 32.28 14.83 5.8 1.93 100

MONTHLY INCOME
3 9 23 70

50

Interpretation: On the basis of finding following can be analysed:  More than 30k: 45.16% of the customers have monthly family income more than 30k.  b/w 15-300k: 32.28% of the customers has monthly family income in 1520k.  b/w 10-15k: 14.83% of the customers has monthly family income in 1015k.

MORE THAN 30

NOT AVAI AB E

y y

ESS THAN 10

ETWEEN 10 -15

ETWEEN 15 -30

PARTICULARS

%wis

Q4) What is your family status?

MARRIED WITH KIDS SINGLE NEWLY MARRIED MARRIED WITHOUT KIDS TOTAL

84 44 14 13 155

54.18 28.38 9.06 8.38 100

FAMILY STATUS
44

84
13

14

SINGLE MARRIED WITHOUT KIDS

NEWLY MARRIED MARRIED WITH KIDS

Int p t tion: On the basis of findings following can be analysed:  For Single: 28.36% of the customer base is single.  Newly married: 9.06% of the customers are is newly married.

 Married without kids: 8.38% of the customer s base is married without kids  Married with kids: 54.18% of the customer s base is married with kids.

PARTICULARS

% wis

Q5) Are you regular BIG BAZAAR customer?

YES NO TOTAL

123 32 155

79.35 20.65 100

REGULARITY
32

123

YES

NO

Int p t tion: On the basis of finding following can be analysed:  For yes: 79.35% of the customers are the regular BIG BAZAAR customer.  For no: 20.65% of the customers are not the regular BIG BAZAAR customer

PARTICULARS

% wis

Q6) How often you visit BIG BAZAAR?

EVERY MONTH EVERY 15 DAYS OCCASIONALLY WEEKLY TOTAL

71 36 35 13 155

45.8 23.24 22.58 8.38 100

FREQUENCY
35

13
36

71

WEEKLY

EVERY 15 DAYS

EVERY MONTH

OCCASIONALLY

Int p t tion: On the basis of finding following can be analysed:  For weekly: 8.38% of the customers visit BIG BAZAAR weekly.  Every 15 days: 23.24% of the customers visit BIG BAZAAR every 15 days.  Every month: 45.8% of the customers visit BIG BAZAAR every month.  Occasionally: 22.58% of the customers visit BIG BAZAAR occasionally.

PARTICULARS

% wis

Q7) What attracts to BIG BAZAAR?

DISCOUNT RATES ASSORTMENT CONVINENCE DID NOT RESPOND TOTAL

71 56 19 9 155

45.81 36.13 12.26 5.80

100.00

USP
R E S P O N D A N T S 100
80 60

71
56

40 20
0

19 9

CONVINENCE ASSORTMENT DISCOUNT RATES USP FACTORS

Int p t tion: On the basis of finding following can be analysed:  BIG BAZAAR attracts 45.81% of the customers because of the discount rates.  Assortment works as a second driving factor for attracting the customers.

DID NOT RESPOND

PARTICULARS

% wis

Q8) How you came to know about this mega offer?

PARTICULARS PRINT MEDIA ELECTRONIC MEDIA WORD OF MOUTH TOTAL 92 46 17 178 % wis

59.35 29.68 10.97 100

SOURCE OF INFORMATION
120 100 80

60 40 20
0

Int p t tion: On the basis of finding following can be analysed:  Print media: 59.35% of the customers became aware about the mega promotional event with the help of print media.  Electronic media: 29.68% of the customers became aware about the mega promotional event with the help of electronic media.  Word of mouth: 10.97% of the customers became aware about this event from friends & family.

PRINT MEDIA

E ECTRONIC MEDIA WORD OF MOUTH

d d e

Q8) Is there any shift in your shopping plan after coming here?
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PARTICULARS YES NO TOTAL 78 77 155 % wis

50.33 49.67 100

SHOPPIN SHIFT

77

78

YES

NO

Interpretation: On the basis of finding following can be analysed Yes: 50.33% of the customer had a shift in their purchasing plan after they entered the store. No: 49.67% of the customer didn t have a shift in their purchasing plans after entering the store.

Q9)How much have you spent on your shopping today?

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PARTICULARS BETWEEN 1K-3K BETWEEN 3K-5K LESS THAN 1K MORE THAN 5 K TOTAL 76 29 25 25 155 % wis

49.06 18.7 16.12 16.12 100

SHOPPING EXPENDITURE
25
29

25

76

LESS THAN 1K

BETWEEN 1K-3K

BETWEEN 3K-5K

MORE THAN 5 K

Int p t tion: On the basis of finding following can be analysed:  For less than 1k:16.12% of the customers have spent less than 1k  For Between 1k-3k:49.06% of the customers have spent between 1k-3k

j j ki i

 For between 3k-5k:18.7% of the customers have spent between 3k-5k  For more than 5k-16.12% of the customers have spent more than 5k

Some of the problems faced by the customers during the days of mega promotional events. 1)Parking problem 2)No water facility available inside the premises. 3)No trolleys were available on the fourth floor. 4)Lack of staff assistance 5)Unawareness of the staff regarding the items inside the store. 6)Display of the items was such that was hampering the free movement inside the store. 7)Misleading signage.(on billing counters it was written RECHARGE FACILITY AVAILABLE HERE which cannot actually be av ailed by the customer) 8)Prolonged waiting time at the counter 9)No compliance between the advertisement and the item placed inside the store. 10)Misleading price tags. 11)No facility of chairs inside the store. 12)No facility of gift wrapping 13)Poor quality of carrying bags. 14)Unavailability of the branded items inside the store a lot of focus on the local items. 15)Staff wasn t able to communicate well with the customers.

FINDINGS

OPERATIONAL DEFINATIONS :

FOR AGE:

Baby boomers: Population that was born between 1946 to 1964. Generation X: Population born between 1965 to 1979 Generation Y: Population born between the years 1977 to 1994

FOR FAMILY STATUS:

Bachelorhood: consists of young single men and women who have established household apart from their parents. Honeymooners: starts immediately after the marriage vows are taken and generally continues until the arrival of couple s first child. Parenthood: when the couple has its first child. Post parenthood: when all children s have left home.

Survey findings
y Major customers are Gen Y . i.e people between (17yrs to 33yrs) y All categories of customers has good earning capacity because most of the customers are employed either in public or private organizations. y According to the study most of the customers are regular BIG BAZAAR customers, so strategy is required to attract more irregular customers during such mega events. y Customers those are into their parenthood stage of FLC shown more impulse buying compare to bachelors, honeymooners & post parenthood customers.(observation) y Print media coverage is higher for such mega events compare to electronic media and other sources of promotions. y With the increase in distance travelled, customer show more impulse buying behavior. For distance: y Most of the customers travelled up to 10kms y No baby boomers travelled beyond 10 kms but few from gen y & gen x does. y Nearly 89% of the customers who live within 5 kms from BIG BAZAAR are regular customers to the store. 50% customers visits weekly & every 10- 15 days. 47% customers visits monthly especially on Wednesdays.  According to the survey, customers into their parenthood stage of FLC deviate more or impulse buyers compare to bachelors, honeymooners & post parenthood stage customers.

 Nearly all the female customers visit BIG BAZAAR because of large assortment & good discount rates unlike male customers who also look for convenient while visiting BIG BAZAAR.  100% of the female customers preferred BB for discounted rates and large assortment.  59% male customers preferred BB for discounted rates and large assortment whereas remaining 41% males preferred BB because of convenience and other reasons like quality, family pleasure etc.  Irregular customers are more likely to be deviated from shopping plans in comparison to regular customers.  62% of the irregular customers change their shopping plans or deviate from their shopping plan.  48% of the regular customers change their shopping plans or deviate.  On such mega events irregular customers contributes higher amount in revenue generation compare to regular customers. % calculations done on the contribution made by both regular and irregular customers suggest that irregular customers spent more during such mega events.  No loyalty bonuses offered to those who are regular BB customers.  Such mega events are mostly explored by bachelors and parenthood customers in comparison to honeymooners.

RECOMMENDATIONS
 Loyalty cards must be issued to the regular customers.  Points should be awarded based distance traveled and volume purchased (to attract irregular customers)  Should over not over promise and under deliver.  Proper parking facility should be arranged during mega promotional events.  Basic amenities like drinking water, resting chairs etc should be provided.  Proper display of the assortment should be kept in mind so as to provide hassle free movement of the customers.  More billing counters should be arranged during such events to reduce average waiting time of the customers.  Gift wrapping facility should be given to the customers.  During mega events, apart from generating sales volumes company should also take care of customer service.  Quality of the carry bags should be improved.  Sales representatives should be properly trained before such mega events so as to handle miscommunication and chaos.  Signage before display must be scrutinized.  Trolley should be available in adequate numbers on each floor.  Newspaper advertisements should be done well in advance.