SUMMER TRAINING PROJECT

REPORT ON
CUSTOMER SATISFACTION AT BIG BAZAAR

SUBMITTED TO
Guru Gobind Singh Indraprastha University in partial fulfillment of the
requirement for the degree of Bachelor of Business Administration (2014-2017)

UNDER THE GUIDANCE OF SUBMITTED BY

DR. BHAWNA BHATNAGAR DEEPAK VIJ

ROLL NO-08815501714

NEW DELHI INSTITUTE OF MANAGEMENT

TUGHLAKABAD INSTITUTIONAL AREA

NEW DELHI-110062

1
 ACKNOWLEDGEMENT

Success is an effort bounded activity that involves co-operation of all.

I hereby take the opportunity to express my profound sense of gratitude and reverence to all
those who have helped and encouraged me towards successful completion of the summer
internship project Report. It has been a great experience working on ‘CUSTOMER
SATISFACTION AT BIG BAZAAR’. It gives me complete insight of this concept of
marketing and its application. I am really grateful to Assistant Manager of big bazaar for the
amazing guidance and constant support to me throughout the training. I also thankful to the
Principal of NDIM to give me such an opportunity to continue my training.

I would like to thank my Project Guide Dr. Bhawna Bhatanagar for her immense guidance,
valuable help and the opportunity provided to me to complete the project under her guidance.

I would like to thank all faculty members of New Delhi Institute of management for guiding
and supporting me in the completion of the project from time to time.

Deepak Vij

2
 CERTIFICATE

This is to certify that Deepak Vij, student of NEW DELHI INSTITUTE OF

MANAGEMENT has successfully completed his summer training report on
“Customer Satisfaction at Big Bazaar” is an original study done by him under my
guidance and supervision. This project has been completed to my satisfaction.

Dr. Bhawna Bhatnagar

(PROJECT GUIDE)

3
 TO WHOM SO EVER IT MAY CONCERN

This is to certify that Summer Internship Project Report on “Customer Satisfaction at Big
Bazaar” prepared by Mr. Deepak Vij, of BBA-General 2014-2017 Batch (New Delhi
Institute of Management, Delhi) is his genuine effort under my guidance and supervision.
His internship training commenced on 20.06.2016 and was completed on 02.08.2016.

The student has successfully discharged all duties assigned to him during his internship with
the organisation. His Conduct was found to be good.

We wish him every success in life.

Kishore Joshi
Assistant Manager (Mktg.)

V3s Mall, 2nd Floor, Plot No. 12,

Laxmi Nagar,
New Delhi,
Delhi-110092
Phone: 011 2242 3990
Website: http://www.bigbazaar.com/

4
 INDEX

Chapter Contents Page No.

No.

1 Introduction To The Study : 1

Introduction 1

Objectives and Scope 15

Limitations 16

2 Research Methodology 17

3 Industry overview : 20

Retail Mix 21

Major Players 29

4 Company Profile : 34

Profile Of The Company 35

Group Vision and Mission 43

Awards And Recognition 45

5
5 Job Description: 46

Customer satisfaction 47

job description statement 48

Day to day on job experience 49

6 Findings and analysis : 50

Findings Based on Questionnaire 51

SWOT Analysis 60

7 Conclusion And Recommendations : 63

Conclusion 64

Recommendations 65

Annexure : 66

Bibliography 67

Questionnaire 68

6
 List of Tables and Charts

Fig No. Name Of Tables and Charts Page No.

1.1 Scale of Operations 10

1.2 Evolution Of Indian Retail 14

1.3 Penetration Of Organised Retail 17

4.1 Big Bazaar Info 46

5.1 Big Bazaar Price (C) 52

5.2 Big Bazaar Price (T) 52

5.3 Quality and Variety Of Products (C) 53

5.4 Quality and Variety Of Products (T) 53

5.5 Offers and Discounts (C) 54

5.6 Offers and Discounts (T) 54

5.7 Staff’s Behavior (C) 55

5.8 Staff’s Behavior (T) 55

5.9 Store’s ambience and Cleanliness (C) 56

5.10 Store’s ambience and Cleanliness (T) 56

5.11 Customer Service Desk (C) 57

5.12 Customer Service Desk (T) 57

7
 5.13 Billing Experience (C) 58

5.14 Billing Experience (T) 58

5.15 Security’s Behavior (C) 59

5.16 Security’s Behavior (T) 59

5.17 Overall Experience (C) 60

5.18 Overall Experience (T) 60

Notes:

C – Pie Chart

T - Table

8
9
1.1 Brief Overview of the study

The word "Retail" originates from a French-Italian word. Retailer is someone who cuts off or
sheds a small piece from something. Retailing is the set of activities that markets products or
services to final consumers for their own personal or household use. It does this by
organizing their availability on a relatively large scale and supplying them to customers on a
relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization
who is instrumental in reaching the Goods or Merchandise or Services to the End User or
Ultimate Consumer.

Indian Retail Industry:

Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its
GDP. The Indian retail market is estimated to be 450 billion and one of the top five retail
markets in the world by economic value. India is one of the fastest growing retail market in
the world, with 1.2 billion people.

India's retailing industry is essentially owner manned small shops. In 2010, larger format
convenience stores and supermarkets accounted for about 4 percent of the industry, and these
were present only in large urban centers. India's retail and logistics industry employs about 40
million Indians (3.3% of Indian population).

Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand
retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or

10
any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic
process.

In November 2011, India's central government announced retail reforms for both multi-brand
stores and single-brand stores. These market reforms paved the way for retail innovation and
competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single
brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism,
both in opposition and in support of the reforms. In December 2011, under pressure from the
opposition, Indian government placed the retail reforms on hold till it reaches a consensus

In January 2012, India approved reforms for single-brand stores welcoming anyone in the
world to innovate in Indian retail market with 100% ownership, but imposed the requirement
that the single brand retailer source 30 percent of its goods from India. Indian government
continues the hold on retail reforms for multi-brand stores.

In June 2012, IKEA announced it has applied for permission to invest $1.9 billion in India
and set up 25 retail stores. Fitch believes that the 30 percent requirement is likely to
significantly delay if not prevent most single brand majors from Europe, USA and Japan from
opening stores and creating associated jobs in India.

Key Challenges

McKinsey study claims retail productivity in India is very low compared to international peer
measures. For example, the labor productivity in Indian retail was just 6% of the labor
productivity in United States in 2010. India's labor productivity in food retailing is about 5%
compared to Brazil's 14%; while India's labor productivity in non-food retailing is about 8%
compared to Poland's 25%.

Total retail employment in India, both organized and unorganized, account for about 6% of
Indian labor work force currently - most of which is unorganized. This is about a third of
levels in United States and Europe; and about half of levels in other emerging economies. A
complete expansion of retail sector to levels and productivity similar to other emerging
economies and developed economies such as the United States would create over 50 million
jobs in India. Training and development of labor and management for higher retail
productivity is expected to be a challenge.

To become a truly flourishing industry, retailing in India needs to cross the following hurdles.

11
 Automatic approval is not allowed for foreign investment in retail.
 Regulations restricting real estate purchases, and cumbersome local laws.

 Taxation, which favours small retail businesses.

 Absence of developed supply chain and integrated IT management.

 Lack of trained work force.

 Low skill level for retailing management.

 Lack of Retailing Courses and study options

 Intrinsic complexity of retailing – rapid price changes, constant threat of product

obsolescence and low margins.

In November 2011, the Indian government announced relaxation of some rules and the
opening of retail market to competition.

Scale of Operations (1.1)

Size 2008 2010 Percentage

Change

Estimated Size Of Retail In India 353 416 18 %

( in $bn )

Share Of Organised Retail In India 7 12 71 %

(%)

TYPES OF RETAIL

12
Retail is usually classified by type of products as follows:

 Food products
 Hard goods or durable goods ("hardline retailers") - appliances, electronics, furniture,
sporting goods, etc. Goods that do not quickly wear out and provide utility over time.

 Soft goods or consumables - clothing, apparel, and other fabrics. Goods that are
consumed after one use or have a limited period (typically under three years) in which
you may use them.

There are the following types of retailers by marketing strategy:

 Department stores - Very large stores offering a huge assortment of "soft" and "hard
goods; often bear a resemblance to a collection of specialty stores. A retailer of such store
carries variety of categories and has broad assortment at average price. They offer
considerable customer service.
 Discount stores - Tend to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at affordable and
cut-rate prices. Normally retailers sell less fashion-oriented brands.

 Warehouse stores - Warehouses that offer low-cost, often high-quantity goods piled
on pallets or steel shelves; warehouse clubs charge a membership fee;

 Variety stores - These offer extremely low-cost goods, with limited selection;

 Demographic - Retailers that aim at one particular segment (e.g., high-end retailers
focusing on wealthy individuals).

 Mom-And-Pop: MAP is a retail outlet that is owned and operated by individuals. The
range of products are very selective and few in numbers. These stores are seen in local
community often are family-run businesses. The square feet area of the store depends on
the store holder.

 Specialty stores: A typical specialty store gives attention to a particular category and
provides high level of service to the customers. A pet store that specializes in selling dog
food would be regarded as a specialty store. However, branded stores also come under
this format. For example if a customer visits a Reebok or Gap store then they find just
Reebok and Gap products in the respective stores.
13
 General store - A rural store that supplies the main needs for the local community;

 Convenience stores: It is essentially found in residential areas. They provide limited

amount of merchandise at more than average prices with a speedy checkout. This store is
ideal for emergency and immediate purchases as it often works with extended hours,
stocking everyday;

 Hypermarkets: It provides variety and huge volumes of exclusive merchandise at

low margins. The operating cost is comparatively less than other retail formats.

 Supermarkets: It is a self-service store consisting mainly of grocery and limited

products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing.
The supermarkets can be anywhere between 20,000 and 40,000 square feet (3,700 m2).
Example: SPAR supermarket.

 Malls: Malls has a range of retail shops at a single outlet. They endow with products,
food and entertainment under a roof.

Global Top Four Retailers

Worldwide Top Four Retailers

Retail Sales Rank Company Country of Origin 2012 and 2013 group revenue (Billion)

1 Walmart US $469.162

2 Carrefour France €76.27

3 Metro AG Germany €66.739

4 Tesco UK £64.826

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Sources: http://www.rediff.com/business/slide-show/slide-show-1-worlds-top-10-retail-
giants/20111130.htm

Essentials of Retailing

Customer orientation - The retailer makes a careful study of the needs of the customer and
attempts to satisfy those needs.

Goal orientation - The retailer has clear cut goal and devises strategies to achieve those
goals.

Value driven approach - The retailer offers good value to the consumer with merchandise
having the price and quality appropriate for the target market.

Coordinated efforts — Every activity of the firm is aligned to the goal and is designed to
maximize its efficiency and deliver value to the consumer.

Growth Factors in Indian Organized Retail sector:

The growth factors in India organized sector are various but it is mainly due to the fact that
India's economy is booming. Also the rise in the working population which is young Pay-
packets which are hefty more nuclear families in urban areas rise in the number of women
working more disposable income and customer aspiration. Western influences and growth in

15
expenditure for luxury items. All these are the factors for the growth in Indian organized
retail sector. According to the Icier report the retail business in India is estimated to grow at
13% from $322 billion in 2006-07 to $590 billion in 20ll-l2. The unorganized retail sector is
expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in
2006-07 to $ 496 billion in 2011-l2. With over l,000 hypermarkets and 3,000 supermarkets
projected to come up by 2011. India will need additional retail space of 700,000,000 sq ft
(65,000.000 m2) as compared to today. Current projections on construction point to a supply
of just 200,000,000 sq ft (l9, 000,000 m2) leaving a gap of $500,000,000 sq ft (46,000,000
m2) that needs to be filled, at a cost of US$l5—l8 billion. Many Indian companies have
entered the retail industry in India and this is also a factor in the growth of Indian organized
retail sector. Reliance Industries Limited is planning to invest US$ 6 billion in the organized
retail sector in I India by opening 1500 supermarkets and l,000 hypermarkets. Bharti
Telecoms is planning a joint venture worth £ 750 million with Tesco a global retail giant.
Pantaloons are planning to invest USS 1 billion in order to increase its retail space to 30
million square feet. Such huge investment is also a factor in the growth of the organized retail
sector in India.

The world‘s largest retailer by sales. Wal-Mart Stores Inc and Sunil Mittal's Bharti
Enterprises have entered into a joint venture agreement and they are planning to open l0 to
15 cash-and-carry facilities over seven years. Carrefour the world’s second largest retailer by
sales is planning to setup two business entities in the country one for its cash-and-carry
business and the other a master franchisee which will lend its banner technical services and
know how to an Indian company for direct-to-consumer retail. The world’s fifth largest
retailer by sales Costco Wholesale Corp (Costco) known for its warehouse club model is also
interested in coming to India and waiting for the right opportunity. Tesco Plc... Plans to set up
shop in India with a wholesale cash-and-carry business and will help Indian conglomerate
Tata group to grow its hypermarket business. The factors for growth in Indian organized retail
sector are many and that’s the reason behind its massive growth, but for this to continue both
the Indian retailers and the government will have to work together.

Indian Organized Retail Sector's Impact on Lifestyles

The Indian organized retail sector‘s impact changed the lifestyle of the Indian consumers
drastically. The evident increase in consumerist activity is colossal which has already chipped

16
out a money making recess for the Indian organized retail sector. With the onset of a
globalized economy in India the Indian consumer`s psyche has been changed. People have
become aware of the value of money. Now -a-days the Indian consumers are well versed with
the concepts about quality of products & services. These demands are the visible impacts of
the Indian organized retail sector. Since the liberalization policy of 1990 the Indian economy
and its consumers are getting whiff of the latest national & international products with the
help of print & electronic media. The social changes with the rapid economic growth due to
trained personnel’s, fast modernization; enhanced availableness of retail space is the positive
effects of Liberalization.

The growth factors of organized retail in India are:-

• Increase in per capita income which in turn increases the household

consumption.
• Demographical changes and improvements in the standard of living Change in
patterns of consumption and availability of low cost consumer credit.
• Improvements in infrastructure and enhanced availability of retail space.
• Entry to various sources of financing.

The non-food sector segments comprising apparel accessories fashion and lifestyle felt the
significant change with the emergence of new stores formats like convenience stores. Mini
mans mini supermarkets, large supermarkets and hyper marts. Even food retailing has
became an important retail business in the national arena with large format retail stores.
Establishing stores all over India With the entry of packaged foods like M'I`R. ITC Ashirbad,
fast foods chains like McDonald's, KFC, beverage parlour’s like Nescafe, Tata Tea, Cafe
Coffee Day and Barista. The Indian food habits have been altered. These stores have earned
the reputation of being ’super saver locations. India will be a unique business arena in whole
of the global economy for the social and economic parameters would overrule the big bang of
the vivid competition previously mastered by the unorganized retail sector. India opened up
late as an economy in l990 until then the idea of retail formats were spread by the
government.

Employment Opportunities in India Retail Sector

The retail sector can play a phenomenal role in employment generation. Even for some
developed countries, it acts like as a growth engine for their economy. Indian Retail Industry,

17
being a dynamic sector, is account for over 10 per cent of GDP and around 8 per cent of the
employment.

Lots of employment generation by Indian Organized Retail Sector in the near future.

India is going through a radical economic change. Though it is very infant stage people can
feel the climate is changing. The unorganized retailers take the lion‘s share in the Indian
retail sector but the organized retailers are growing at a good pace and promise an increase of
proportion of by 2016. This is to be the largest sector after the agricultural sector. The
increase in the number of consumers twinned with the introduction of organized sector has
brought numerous corporate investments in retail sector. The entry of super markets
enormous departmental stores and shopping malls has encouraged the retailers to look at new
business plans of expansion. An economic growth on a monumental scale is offered by the
Indian retail sector equally in the national and international market which in turn will
generate a huge source of employment and a variety of options for the consumers. The Ernst
& Young's report ‘The Great Indian Retail Story ‘anticipates that the Indian retail sector
would come up with 2 million employment opportunities within the year 2010.

Benefits to the economic growth:-

 Better quality products and services would lead to better competition.

 More exports bring more foreign direct investments.
 Organized Indian retail sector would encourage tourism.
 Along with the employment boom there would be a vast development in the expertise
of the human resource.
 There would remain future scope for improvements in agriculture small and medium
scaled with the help of the Indian retail sector.

The present employment in the retail business is nearly 4 cr. and around 20 cr. depend on this
sector. There is a scope of better exposure to the international standards with the entry of
transnational companies, which in turn is encouraging more & more retail Management
programs to open up and help bridging the gap of supply & demand of talented professionals
for management.

Scope of the Indian Retail Market:

India is a country of youth and the modern retailing sector doing all its effort to lure this vast
population. Indian retail market is one of the India’s fastest growing industries and making

18
business of billions and billions dollars. The robust growth of the sector got full praises from
Euro Monitor International.

Gone are the days when people invested more on foods and groceries, now, drastic changes
may be observed in lifestyle related categories.

Indian retail industries are giving more thrust on Food, Grocery, Clothing, Furniture,
Pharmacy, Durable goods, Footwear & Leather, Watch, Jewellery and Electronic items.

The scope of the Indian retail market is immense for this sector is poised for the highest
growth in the next 5 years. The Indian retail industry contributes l3% of the country’s GDP in
the Indian retail market the scope for growth can be seen from the fact that it is expected to
rise to USS 590 billion in 201 I- I2 from US$ 309 billion in 2006-07.

The organized retailing sector in India was only 7%· in 2008 and is expected to rise to 25-
30% by the year 2016. There are under construction at present around 325 departmental
stores, 300 new malls, and l500 supermarkets. This proves that there is a tremendous scope
for growth in the Indian retail market. The growth of scope in the Indian retail market is
mainly due to the change in the consumer’s behaviour. For the new generation have
preference towards luxury commodities which have been due to the strong increase in
income, changing lifestyle and demographic patterns which are favourable. The scope of the
Indian retail market has been seen by many retail giants and that’s the reason that many new
players are entering the India retail industry.

1.2 Study Objectives

Primary Objectives:

 To find out the level of customer satisfaction with regards to Big Bazaar.

Secondary Objectives:

 To understand the quality of service maintained in the store.

 To determine the performance of sales persons in the store.
 To find out reasons of dissatisfaction.
 To find out which means of communication plays a vital role to persuade customer.
 To understanding the buying Behaviour at Biz Bazaar.
 To analyze how the merchandising mix influence the customer satisfaction level.

19
1.3 Scope and Significance of the study:

The study makes an effort to ascertain the satisfaction level of customers from the store
environment and analyze the impact of retailing mix on the customer satisfaction level and to
improve the store environment to increase the sales and to attract the customers. The
company can come up to the expectation only by finding out the problem that customers are
facing during their purchase from the store. The subject has been taken for the research as it
plays key role in success of retail sector. As long as the company is able to satisfy its
customer will remain in the bracket of loyal customer. This study helps to improve the
environment of the store to reach the customer satisfaction level and improve the
merchandising in Big Bazaar.

1.4 Limitations of the study:

 Time limit is the major constraint.

 Some respondents refuse to co-operate.
 Some respondents replied half heartedly.
 Some respondents gave incomplete information.
 Some respondents gave dishonest answer.

20
21
Research in common parlance refers to a search for knowledge. One can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation.

The purpose of current research is to study the level of customer satisfaction with respect to
the people who visit Big Bazaar for shopping.

2.1 UNIVERSE

All items in any field of enquiry constitute a ‘Universe’ or ‘Population’. A complete

enumeration of all items in the population is known as a census enquiry. The Universe
selected for study was customers who visit BIG BAZAAR for shopping in Delhi region.

2.2 DATA COLLECTION METHOD

The task of Data collection start after research problems has been defined and research design
plan checked out. While deciding about the method of collection of data to be used for the
study, two types of data should be kept in mind viz, primary data and secondary data. For the
study, both primary and secondary data were collected.

Primary Data :

SAMPLE SIZE AND SAMPLING TECHNIQUE

The number of items selected from the universe to represent the Universe is called size of the
sample. It is not feasible to cover all the customers of BIG BAZAAR. So for the purpose of
this a sample of 50 was taken. The technique use for the study is convenience sampling.
And the type of research is Descriptive research.

22
QUESTIONNAIRE

To collect first-hand information or primary data a structured, closed-ended, multiple-choice

questionnaire was prepared and administered to the sample of respondents selected for the
study. Question relating to general profile and behavior towards different services like
ambience, satisfaction level, etc., were included.

Secondary data
Secondary data means data that are already available i.e. they refer to the data which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data then he has to look into various sources from where he can obtain them. In this case he is
certainly not confronted with the problems that are usually associated with the collection of
original data. For secondary data existing literature in form magazines, newspaper, book,
company literature, web sources were consulted.

2.3 DATA PRESENTATION TOOLS

The data has been presented by way of tables, pie charts and graphs. These have been
specifically used to present the data collected from respondents through questionnaire.

23
24
3.1 Retail Mix

The retail mix is the combination of factors retail used to satisfied customer needs and\
influences their purchase decision. It’s including the type of merchandise and services
offered. Merchandise pricing, advertising, promotional programs store design merchandise
display assistance to customer provided by salespeople, and convenience of the store’s
location.

 Retail mix is the term used to describe the various elements and methods required to
formulate and execute retail marketing strategy.
 Retail managers must determine the optimum mix of retailing activities and
coordinate the elements of the mix.
 The aim of such coordination is for each store to have a distinct retail image in
consumers mind.
 The mix may vary greatly according to the type of the retailer is in. and the type of
product/services.

While many elements may make up a firm’s retail mix the essential elements may include:

 Store location.
 merchandise assortments
 Store ambience.
 Customer service.
 Price
 Communication with customers
 Personal selling
 Store image
 Store design
 Sales incentives
 People
 Process
 Physical evidence

25
Composition of retail mix

 Place
 Product
 Price
 Promotion
 People
 Process
 Physical Environment

Retail Mix Planning

Retail mix plan consists of:

 Setting objectives
 Systematic way of identifying a range of options
 Formulation of plans for achieving goals
 Logical sequence of retailing activities.

Importance of Retail Mix Planning

 Hostile and complex retail environment

 External and internal retail organisation factors interact for
 Maximising revenue

26
  Maximising profit
 Maximising return on investment
 Minimising costs
 Each element has conflicting needs
 All these variables interact
 All these variables result in optimum compromise.

Approaches to planning

1. Top down approach: - Retail management sets goals and plans for all levels of
management.

2. Bottom- up approach: - Various units prepare own goals and plans sent up for
approval. It is the effective blending of all the elements of retail mix activities within
the retail organization that determines the success of retail management. Discuss this
statement and explain with retail examples how the elements of retail mix could be
blended to ensure the success of retail operation.

Retailing

Retailing is the sale of goods and services to ultimate consumers for personal non-business
use. Any institution may engage in retailing but a firm engage primarily in retailing is called a
retailer. Retailers serve as purchasing agents for consumer and as sales specialists for
producers and wholesaling middleman. They perform many specific activities such as
anticipating consumer’s wants developing product assortments and financing .Retailers may
be classified by form of ownership and key marketing strategies. Also types of retailers
distinguished according to product assortment, price and customer service levels. Mature
institutions such as department stores, discount houses and super markets face strong
challenges from new competitors particularly chain SIOICS or multiple shops in various
product categories.

Five major forms of non store retailing are direct selling, Telemarketing and automatic
vending. On line retailing and Direct marketing .Each type has advantages as well as
drawbacks.

27
Retail Marketing Mix

Whatever is form of ownership a retailer must develop marketing mix strategies to succeed in
its chosen target markets? In retailing the marketing mix emphasizes product assortment,
price, location, and promotion and customer services designed to aid in the sale of a product.
They include credit delivery, gift wrapping, product installation, merchandise returns, store
hours, parking and- very important personal service. Stores of different sizes face distinct
challenges and opportunities. Buying, Promotion. Staffing and expense control are influenced
significantly by whether store's sales volume is large or small. Size of a retail business creates
certain merits and demerits. Considering these factors, large stores ordinarily but not always
have a competitive advantage over small stores.

Marketing Strategy

Many authors have attempted to explain the concept of strategy. At the retail level a
marketing strategy can be thought of three major components: target selection of customers,
Core strategy (i.e. positioning and differential advantage) and implementation (i.e. supporting
marketing mix). The first major component is the description of the market segment(s) to
which competing brands are being marketed. Market segments can be described in various
ways. Since few brands are truly mass marketed the key is to determine which group each
competitor has targeted. The second strategy component is what is called the core strategy.
This is the basis on which the rival is competing that is its key claimed differential
advantage(s). Differential advantage is a critical component of strategy because it usually
forms the basic selling proposition around which the brand's communications are formed. lt is
also called the brand's positioning. The final strategy component of competitors must be
assessed in the supporting marketing mix. The mix provides insight into the basic strategy of
the competitor and specific tactical decisions. These decisions are what customers actually
see in the market place. In fact, customers are exposed to price, advertising, promotion and
other marketing mix elements.

Marketing Environment

28
To the company’s marketers falls the major responsibility for identifying major changes in
the environment. The retail environment in particular is constantly spinning out new
opportunities in bad as well as in good years. The general marketing environment also spins
out new threats – such as an energy crisis, a sharp rise in interest rates, a deep recession-and
firms find their markets collapsing. Recent times have been marked by many sudden changes
in the marketing environment, leading Drucker to dub it an Age of Discontinuity and Toffler
to describe it as a time of Future Shock. Retail marketers need to continuously monitor the
changing scene. They must use their intelligence and marketing research to track the
changing environment. By erecting early warning systems retailers will be able to revise
marketing strategies in time to meet new challenges and opportunities in the environment. It
consists of the external actors and forces that affect the retailer’s ability to develop and
maintain successful transactions and relationships with its target customers. We can
distinguish between the retailers’ micro environment and macro environment. The micro
environment consists of the actors in the retailer's immediate achievement that affects its
ability to serve its markets: Suppliers, intermediaries, customers, competitors and publics.
The macro environment consists of legal, social, economic and technological forces.

Store location and Layout

Retailers want to locate their stores in the best place possible. The best place possible will
vary from retailer to retailer depending on the industry type of product, competition and other
market factors. Basically a retail store has to locate where the market opportunities are at
optimal levels. There are basic guidelines that most retailers examine before choosing a new
location. First, the retailer must select a country or region and then define the boundaries of
the trade area and evaluate its population characteristics against the retailers target market.
The buying power of the area must be considered along with its market and sales potential.
The size, location, and type of competition must also be taken into account. The local legal
and political environment must be examined along with the leasing costs and occupancy
rates.

Competitive Sales

Given widespread availability of the same brands retailers have to cope with the phenomenon
of discounts. The retailers themselves dilute the strength of the retail market. With
promotions becoming the order of the day they have entered into price wars against each

29
other. ‘Up to 50 percent off sales and ‘Two for one’ price offers have now become
commonplace even at the top retail outlets across our country. Every season every festival has
more price Cuts. The discounted buying has become an annual market strategy rather than a
mere sales promotion for a few weeks. Deep price cuts may not be the answer to maintain
their relevance against the small retailers nor does it augur well for the brand building of the
store.

3.2 Major Players

 Pantaloon Retail

It is headquartered in Mumbai with 450 stores across the country employing more than
18.000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001.
An all-India retail space is of 5 million sq. ft. which is expected to reach 30 mn by 2012. It is
not only the largest retailer in India with a turnover of over Rs. 20 billion but is present across
most retail segments — Food & grocery (Big bazaar Food bazaar). Home solutions
(Hometown Furniture bazaar, collection -i), consumer electronics (e-zone), shoes (shoe
factory), Books: music & gifts (Depot). Health & Beauty care services (Star. S Hara and
Health village in the pipeline), e-tailing (futurebazaar.com), entertainment (Bowling co.), One
of their recent innovations include e-commerce’ hybrid format of ‘small' shops , the area for
these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged to
browse through the entire range of products on digital screen. They will be able to place the
order the delivery of which will be arranged by the shop to their homes within a few hours.

K. Raheja Group

They forayed into retail with Shopper’s Stop, India’s first departmental store in 2001. It is the
only retailer from India to become a member of the prestigious Intercontinental Group of
Departmental Stores (IGDS). They have signed 50:50 joint ventures with the Nuance Group
for Airport Retailing. Shoppers Stop has 75200 sq ft of retail space with a turnover of Rs 6.75
billion Crossword brand of book stores. Homes stop a store for home solutions. Mother care a
concept stocking merchandise related to childcare are also owned by them. Recently,

30
Raheja’s have signed MoU with the Home Retail Group of UK to enter into a franchise
arrangement for the Argos formats of catalogue & internet retailing. The group has
announced plans to establish a network of 55 hypermarkets across India with sales expected
to cross the US$l00 million mark by 2012.

 Tata Group

Established in 1998 Trent - one of the subsidiaries of Tata Group - operates Westside. A
lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of
products at the lowest prices in 2005 it acquired Landmark. India's largest book and music
retailer Trent has more than 4 lakh sq. ft. space across the country. Westside registered a
turnover of Rs 3.58 mn in 2006. Tata’s has also formed a subsidiary named lnfiniti retail
which consists of Croma, a consumer electronics chain. It is a l5000—l7000 sq. ft. format
with 8 stores as of September 2007. Another subsidiary Titan industries, owns brands like
"Titan" the watch of India has 200 exclusive outlets the country and Tanishq The jewellery
brand, has 87 exclusive outlets. Their combined turnover is Rs 655 billion .Trent plans to
open 27 more stores across its retail formats adding l.5 mnsqft of space in the next l2 DLF
malls.

 Bharti-Walmart

Their plans include US$ 7 bn investment in creating retail network in the country including
100 hypermarkets and several hundred small SIOICS. They have signed a 50:50 percent joint
venture agreement with Wal-mart. Wal-Mart will do the cash & carry while Bharti will do the
front-end.

 Reliance

India's most ambitious retail plans are by reliance with investments to the tune of Rs. 30,000
cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by
2009-10. There are already more than 300 Reliance Fresh stores and the first Reliance Mart

31
Hyper mart has opened in Ahmedabad. The next ones are slated to open at Jamnagar followed
by marts in Delhi I NCR, Hyderabad, Vijaywada, Pune and Ludhiana.

 AV Birla Group

They have a strong presence in apparel retailing through Madura garments which is
subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen
Solly, Peter England, Trouser town. In other segments of retail AV Birla Group has
announced investment plans of Rs 8000 - 9000 crores in the first 3 years till 20l0. The
acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400
stores in the country.

Their "More" range of 15 supermarkets are slated to open at Nashik, Pune and other tier ll
cities in Western India in 2007.

Functions of Retailing

Retailers play a significant role as a conduit between manufacturers, wholesalers, suppliers

and consumers. In this context they perform various functions like storing, breaking bulk
holding stock as a channel of communication, storage, advertising and certain additional
services.

Storing:

Manufacturers usually make one or a variety of products and would like to sell their
inventory to a few buyers to reduce costs. Final consumers in contrast prefer a large variety of
goods and services to choose from and usually buy them in small quantities. Retailers are
able to balance the demands of both sides by collecting an assortment of goods from different
sources buying them in sufficiently large quantities and selling them to consumers in small
units.
32
The above process is referred to as the storing process. Through this process Retailers
undertake activities and perform functions that add to the value of the products and services
sold to the consumer. Supermarkets in the US offer on an average 15,000 different items from
500 companies. Customers are able to choose from a wide range of designs, sizes and brands
from one location. If each manufacturer had a separate store for its own products, customers
would have to visit several stores to complete their shopping. While the entire retailers offer
an assortment they specialize in types of assortment offered and the market to which the
offering is made. Westside provides clothing and accessories while a chain like nil irises
specializes in food and bakery items. Shoppers stop targets the elite urban class while
pantaloons is targeted at the middle class.

Breaking Bulb

Breaking bulk is another function performed by retailing. The word retailing is derived from
the French word retailer meaning to cut a piece of to reduce transportation costs,
manufacturers and wholesalers typically ship range cartons of the products. which are then
tailored by the retailers into smaller quantities to meet individual`s consumptions needs.

Holding stock

Retailers also offer the service of holding stock for the manufacturers. Retailers maintain an
inventory that allows for instant availability of the products to the consumers. It helps to keep
prices stable and enables the manufacturer to regulate production. Consumers can keep a
small stock of products at home as they know that this can be replenished by their retailer and
can save on inventory carrying costs.

Additional Services:

Retailers ease the change in ownership of merchandise by providing services that make it
convenient to buy and use products. Providing products guarantees, after-sales services and
dealing with consumer complaints are some of the services that add value to the actual
product at the retailers end. Retailers also offer credit and hire- purchase facilities to the
customers to enable them to buy a product now and pay for it later. Retailers fill orders

33
promptly process deliver and install products. Salespeople are also employed by retailers to
answer queries and provide additional information about the displayed products.

34
35
4.1 Introduction to Big Bazaar:

“ls se sasta aur acha kahin nahin”

Big bazaar is the company’s foray into the world of hypermarket discount stores, the first of
its kind in India. Price and the wide array of products are the USP's in Big Bazaar. Close to
two lakh products are available under one roof at prices lower by 2 to 60 per cent over the
corresponding market prices. The high quality of service, good ambience, implicit guarantees
and continuous discount programmes have helped in changing the face of the Indian retailing
industry. A leading foreign broking house compared the rush at Big Bazaar to that of a local
suburban train.

Wednesday Bazaar

Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse
Sasta Din”. It was mainly to draw customers to the stores on Wednesdays, when least number
of customers is observed. Initiated in January 2007, the idea behind this scheme was to draw
customers to stores on Wednesdays, the day when consumer presence is usually less.
According to the chain, the aim of the concept is "to give homemakers the power to save the
most and even the stores in the city don a fresh look to make customers feel that it is their
day".

Sabse Sasta Din

With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the
concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly
belonged to Big Bazaar. This was launched on January 26, 2006 and the result was
exceptional that police had to come in to control the mammoth crowd. The concept was such
a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and
to five days in 2011 (22-26 Jan).

Maha Bachat

Maha Bachat was started off in 2006 as a single day campaign with attractive promotional
offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual
campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar,
Electronic Bazaar and Furniture Bazaar - catering to the entire needs of a consumer.

36
The Great Exchange Offer

On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the
customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can
redeem these coupons for brand new goods across the nation.

Outlet 104 Outlets (India)

Parent Group Future Group

Owner Kishore Biyani (CEO)

Founded 2001

Head Quarter Mumbai

Industry Retail

Website www.bigbazaar.com

Tag Line ls se sasta aur acha kahin nahin

Big Bazaar

Big Bazaar is u chain of shopping malls in India, owned by the Pantaloon Group und which
work on Wal-Mart type economies of scale. They have had considerable success in many

37
Indian cities und small towns. Big Bazaar provides quality items but at an affordable price. It
is a very innovative idea und this Hypermarket has almost anything under one roof Apparel,
Footwear, Toys, Household Appliances and more. The ambience and customer care adds on
to the shopping experience.

Food Bazaar

Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and International
supermarket atmosphere with the objective of giving the customer all the advantages of
quality. Range and Price associated with large format stores and also the comfort to See
Touch and Feel the products. 'FOOD BAZAAR' a division of Pantaloon Retail India Ltd is a
chain of large supermarkets with a difference. It was flagged off in April‘02. With store sizes
ranging from 8,000 sq ft to l5,000 sq. ft. in Mumbai (two stores), Kolkata, Bangalore &
Hyderabad it is opening more stores at Gurgaon (Delhi), New Bombay & Nagpur. It
currently caters to over 1.2 million customers every day across many outlets in India and is
soon set to expand and double this figure across more outlets all over the country. Food
Bazaar offers the Indian consumer the best of Western and Indian values. The western values
of convenience, cleanliness and hygiene are offered through pre packed commodities and the
Indian values of "See- Touch- Feel" are offered through the "Mandi" atmosphere created by
displaying staples out in the open, all at very economical and affordable prices without any
compromise on quality. This satisfies the Indian consumer and comforts her before making
her final buying decision. At other super markets the consumer is deprived of this factor.
Truly the Indian consumer now agrees with Food Bazaar. "Ab Ghar Chalana kitna Aasaan".
This positioning platform of Food Bazaar is evident from the higher discounts and the
wholesale price-points which are below MRP. Food Bazaar represents the company’s entry
into food retail and is targeted across all classes of population, tea, sugar, pulses, spices, rice,
wheat CIC besides fruits and vegetables. All products are sold below MRP and discounts
range between 2% to 20%. Fruits and vegetables are sold at prices comparable to wholesale
prices. Food replicates a local ‘mandi’ to provide the much important ‘touch & feel` factor
which Indian housewives are used to in the local bazaar. Food Bazaar has over 50,000 stock
keeping units which cover grocery, FMCG products, milk products, Juices, spices, ready to
eat foods etc.

38
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.

Big Bazaar, is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd., which
in turn is a segment of the Kishore Biyani, regulated Future Group of Companies. Moreover
the customer friendly ambiance and the organized retailing of products also make Big Bazaar
one of the successful retail companies in India.

Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of
good quality for all at affordable prices. Big Bazaar with over 80 outlets in different parts of
India is present in both the metro cities as well as in the small towns.

This large format store comprise of almost everything required by people from different
income groups. It varies from clothing and accessories for all genders like men, women and
children, playthings, stationary and toys, footwear, plastics, home utility products, cosmetics,
crockery, home textiles, luggage gift items, other novelties, and also food products and
grocery. The added advantage for the customers shopping in Big Bazaar is that there are all
time discounts and promotional offers going on in the Big Bazaar on its salable products. BIG
BAZAAR Retail (India) Limited, is India’s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer market.
Headquartered in Mumbai (Bombay), the company operates over 16 million square feet of
retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a
uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch
and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality
and Central, a chain of seamless destination malls. Some of its other formats include Brand

39
Factory, Blue Sky, all, Top 10 and Star and Sitara. The company also operates an online
portal, futurebazaar.com

Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India)
Limited. This entity has been created keeping in mind the growth and the current size of the
company’s value retail business, led by its format divisions, Big Bazaar and Food Bazaar.

The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other
formats, in over 70 cities across the country, covering an operational retail space of over 6
million square feet. As a focused entity driving the growth of the group's value retail
business, Future Value Retail Limited will continue to deliver more value to its customers,
supply partners, stakeholders and communities across the country and shape the growth of
modern retail in India.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-
format home solutions store, Collection, selling home furniture products and eZone focused
on catering to the consumer electronics segment. Pantaloon Retail is the flagship company of
Future Group, a business group catering to the entire Indian consumption space.

Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are present
in consumer finance, capital, insurance, leisure and entertainment, brand development, retail
real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square
feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered
in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the
Indian stock exchanges. The company follows a multi-format retail strategy that captures
almost the entire consumption basket of Indian customers. In the lifestyle segment, the group
operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value
segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look,
touch and feel of Indian bazaars with the choice and convenience of modern retail.

40
The group’s specialty retail formats include supermarket chain - Food Bazaar, sportswear
retailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town
and rural retail chain - Aadhaar, among others.

Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The
group’s corporate credo is, ‘Rewrite rules, Retain values.’

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

FUNCTIONS OF VARIOUS DEPARTMENTS

1. Human Resources Department

2. Finance Department

3. Marketing Department

4. Logistics Department

5. Sales Department

4.2 MISSION & VISION OF BIG BAZAAR

VISION:

 Future group shall deliver everything everywhere, every time for Indian Consumer in
the most profitable manner.

MISSION:

 We shall infuse Indian Brands with confidence & 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.

41
  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.

Group Mission

 We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to economic
development.
 We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments - for classes and for masses.
 We shall infuse Indian brands with confidence and renewed ambition.
 We shall be efficient cost- conscious and committed to quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.

Core Values

 Indianness: confidence in ourselves.

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

4.3 AWARDS AND RECOGNITION OR TIMELINE

2001

 Three Big Bazaar stores launched within a span of 22 days

in Kolkata, Bangalore and Hyderabad.

42
2002

 Big Bazaar - ICICI Bank Card is launched.

 Food Bazaar becomes part of Big Bazaar with the launch of the first store in Mumbai
at High Street Phoenix

2003

 Big Bazaar enters Tier II cities with the launch of the store in Nagpur

 Big Bazaar welcomes its 10 million-th customer at its new store in Gurgaon

2004

 Big Bazaar wins its first award and national recognition. Big Bazaar and Food Bazaar
awarded the country’s most admired retailer award in value retailing and food
retailing segment at the India Retail Forum

 A day before Diwali, the store at Lower Parel becomes the first to touch Rs 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

 Electronic Bazaar and Furniture Bazaar are launched

 Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold credit card
program to reward its loyal customers.

2006

 Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs 1,37,367
shopping bill. The Sangli farmer becomes Big Bazaar’s largest ever customer.

 Big Bazaar launches Shakti, India’s first credit card program tailored for housewives

43
  Navaras – the jewellery store launched within Big Bazaar stores

2007

 The 50th Big Bazaar store is launched in Kanpur

 Big Bazaar partners with Futurebazaar.com to launch India's most popular shopping
portal

 Big Bazaar initiates the "Power of One" campaign to help raise funds for the Save The
Children India Fund.

 Pantaloon Retail wins the International Retailer of the Year at US-based National
Retail Federation convention in New York and Emerging Retailer of the Year award at
the World Retail Congress held in Barcelona.

2008

 Big Bazaar becomes the fastest growing hypermarket format in the world with the
launch of its 101st store within 7 years of launch

 Big Bazaar dons a new look with a fresh new section, Fashion@Big Bazaar

 Big Bazaar joins the league of India’s Business Super brands. It is voted among the
top ten service brands in the country in the latest Pitch-IMRB international survey

 Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar" campaign, to provide
exceptional deals on groceries and food items during the first week of every month.

2009

 Big Bazaar opens its second store in Assam at Tinsukia

 Big Bazaar initiates Maha Annasantarpane program at its stores in South India – a
unique initiative to offer meals to visitors and support local social organizations

 Big Bazaar captures almost one-third share in food and grocery products sold through
modern retail in India

 Mahendra Singh Dhoni and Asin, youth icons of India, were chosen as the brand
ambassadors of Big Bazaar

44
  Big Bazaar announced the launch of 'The Great Exchange Offer'

 Formed a joint venture with Hidesign to launch Holii, a new brand of handbags,
laptop bags and other accessories.

2010

 Future Value Retail Limited is formed as a specialized subsidiary to spearhead the

group’s value retail business 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 Food & Beverage Chain, Most Preferred
Multi Brand Retail Outlet and Most Preferred Multi Brand 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 Asia

 Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge
exercise

 Ranked 6 among the Top 50 Service Brands in India.

2011

 Big Bazaar forays into the rural wholesale and distribution business through ‘Aadhaar
Wholesale’ store at Kalol, Gujarat.

 Big Bazaar has come up a new logo with a new tag line: ‘Naye India Ka Bazaar’.

 200th store opened in India.

 Future Group has launched its latest venture, Foodhall – a premium food destination
across 10 metros in India.

 For the convenience of the online customers, Big Bazaar has started free shipping on
all orders above Rs. 1000.

45
  Entered into an agreement with Hindustan Unilever to co-develop and co-brand
bakery products, which would be sold exclusively at Big Bazaar stores.

2012

 Big Bazaar entered into a five year multi-million dollar deal with Cognizant
Technology Solutions for IT infrastructure services that support Future Group's
network of stores, warehouses, offices, and data centers.

 Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India.

 Big Bazaar is planning to add further value to its retail services by offering Value
added services like grinding, de-seeding, vegetables cutting at free of cost.

46
47
Concept of customer satisfaction

Customer satisfaction, a term frequently used in marketing, is a measure of how products

and services supplied by a company meet or surpass customer expectation. Customer
satisfaction is defined as "the number of customers, or percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent
responded that they found a customer satisfaction metric very useful in managing and
monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers’ expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. These metrics
quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-
mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service
has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.
When customers have high expectations and the reality falls short, they will be disappointed
and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for

48
example, might receive a lower satisfaction rating than a budget motel—even though its
facilities and service would be deemed superior in 'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining
power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an
industry that is an oligopoly, where only a few suppliers of a certain product or service exist.
As such, many cell phone plan contracts have a lot of fine print with provisions that they
would never get away if there were, say, a hundred cell phone plan providers, because
customer satisfaction would be way too low, and customers would easily have the option of
leaving for a better contract offer.

There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firm

Job Description
 I worked as a trainee in “BIG BAZAAR”.
 I have done all these research during my training.

 Prepare reports of findings, illustrating data graphically and translating complex

findings into written text.

 Devise and evaluate methods and procedures for collecting data (such as surveys,
opinion polls, or questionnaires), or arrange to obtain existing data.

 Measure and assess customer and employee satisfaction

 Forecast and track marketing and sales trends, analyzing collected data.

 Seek and provide information to help companies determine their position in the
marketplace.

 Measure the effectiveness of marketing, advertising, and communications programs

and strategies.

 Conduct research on consumer opinions and marketing strategies, collaborating with

marketing professionals, statisticians, pollsters, and other professionals.
49
  Attend staff conferences to provide management with information and proposals
concerning the promotion, distribution, design, and pricing of company products or
services.

 Gather data on competitors and analyze their prices, sales, and method of marketing
and distribution.

 Monitor industry statistics and follow trends in trade literature.

 Develop and implement procedures for identifying advertising needs.

 Direct trained survey interviewers.

 Collect and analyze data on customer demographics, preferences, needs, and buying
habits to identify potential markets and factors affecting product demand.

Day wise experience

Pre sales role

 Finding the potential customer.
 Meeting prospective customer.
 Understanding the need and desire of the customer.
 Sales presentation and demonstration.
 Handling objections and clarify the customer’s situation.
 Presenting solutions to customer.
 Closing the sale.

Post sales role

 Ask 1-2 references from the customer.

 Providing timely updates and services to the customer for maintaining lifelong
relationship.

50
51
Findings and Analysis Based On The Questionnaire

1. How do you rate Big Bazaar Prices?

Respone No of customer Percentage of customer
Outstanding 10 20%
Good 15 30%
Satisfactory 12 24%
Average 8 16%
Poor 5 10%
Toatal 50 100%
Table 6.1

52
 Figure 6.1

INTEPRETATION

From the above we can say that 20% people find the prices at big bazaar outstanding,
whereas only 10% find them poor, and average is 16%.

2. The quality & variety of Big Bazaar product is good or

not?
Respone No of customer Percentage of customer
Outstanding 13 26%
Good 20 40%
Satisfactory 10 20%
Average 3 6%
Poor 4 8%
Total 50 100%
Table 6.2

53
 Figure 6.2

INTEPRETATION

From the above chart we can say that almost 40% customers find the quality and variety of
product available at Big Bazaar good, whereas only 8% customers find it Poor.

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 3. How do you rate the offers & discounts?

Respone No of customer Percentage of customer

Outstanding 10 20%
Good 19 38%
Satisfactory 12 24%
Average 6 12%
Poor 3 6%
Total 50 100%
Table 6.3

Figure 6.3

INTEPRETATION

From the above chart we can say that 20% shoppers find the discounts offered outstanding,
38% find good, 24% find it is satisfactory, 12% and 6% find the offers and discounts are
average and poor respectively.

4. How do you find staff’s behavior?

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 Respone No of customer Percentage of customer
Outstanding 11 22%
Good 22 44%
Satisfactory 10 20%
Average 5 10%
Poor 2 4%
Total 50 100%
Table 6.4

Figure 6.4

INTEPRETATION

The above graph represents, 20% of the Shoppers at the store are very satisfied with staff’s
behavior; this shows the level of commitment of the store, 44% people are satisfied or said
good, while 20% said it is satisfactory, 10% and 4 % said it is average and poor respectively.

5. How do you rate store’s ambience & cleanliness?

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 Respone No of customer Percentage of customer
Outstanding 10 20%
Good 33 66%
Satisfactory 5 10%
Average 1 2%
Poor 1 2%
Total 50 100%
Table 6.5

Figure 6.5

Interpretation: Only 2% of the overall customers find the store untidy, whereas majority of
customers find it pretty ambience and Clean.

6. How do you rate the customer service desk & in-store

announcements?

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 Respone No of customer Percentage of customer
Outstanding 11 22%
Good 22 44%
Satisfactory 9 18%
Average 7 14%
Poor 1 2%
Total 50 100%
Table 6.6

Figure 6.6

Interpretation: Majority of customers is satisfied with the services offered and the
announcements as they don’t face any problems, only 6 % find it poor.

7. How was your billing experience?

Respone No of customer Percentage of customer

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 Outstanding 6 12%
Good 19 38%
Satisfactory 15 30%
Average 6 12%
Poor 4 8%
Total 50 100%
Table 6.7

Figure 6.7

Interpretation: 40% that is 20 customers find their billing experience pretty good , whereas
others find it satisfying.

8. How do you rate security’s behavior?

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 Respone No of customer Percentage of customer
Outstanding 3 6%
Good 22 44%
Satisfactory 10 20%
Average 9 18%
Poor 6 12%
Total 50 100%
Table 6.8

Figure 6.8

Interpretation: Security is something which needs to be worked on as 16% customers find

their behavior poor and unhelpful.

9. How was your overall experience in store?

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 Respone No of customer Percentage of customer
Outstanding 8 16%
Good 20 40%
Satisfactory 12 24%
Average 6 12%
Poor 4 8%
Total 50 100%
Table 6.9

Figure 6.9

Interpretation: The customers overall find their experience in store good, with a poor rate of
just 4% big bazaar holds a really good shopping experience for customers.

SWOT Analysis
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Strengths

 EDLP [ Every Day Low Pricing]

 Experienced marketing team & executive staff.
 Strong culture ,ethics and values are followed
 Emphasis on providing total customer satisfaction
 Point of purchase promotion to increase the purchase
 Variety of stuff under single roof
 Increase sales with the help of healthy competition between different department
 Maintains good employer-employee relation
 Cost control initiatives that is critical in a retail operations business
 Periodical reviews of the various operations have been done on regular basis to
identify the any possible threat and address the same within time

Weakness

 Unable to meet store opening targets.

 Unavailability of popular brand items with regard to clothing.

Opportunities

 Population of the country is growing where the scope of market is kept on increasing
for the retail sector.
 Organized Retail less penetrated in India so it acts as a great opportunity to the
organization for its growth.
 Evolving consumer preferences.
 Economy is developing as the employment opportunities are increasing and the
income of the people is also increasing which increases life standards of people.
 Company has more scope of expansion in two and three tier cities.

Threats

 Competitors Strategies
 Advancement of technology day by day.
 Government policies.
 Unorganized Retail sector
 Foreign direct investment cause more problems in future because of that many
mergers and acquisition are happening in Indian retail sector.

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Customer Feedback

 Problems are solved in very less time at CSD.

 The staff is trained
 The vegetables and fruits are not fresh.
 Big Bazaar is helping to make Delhi a modern city
 The announcements are not audible.
 Some goods are at very high price mostly Food Bazaar items.
 Lack of employees’ in the store.
 The merchandise is good but display is not good.

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64
DIFFICULTIES FACED & MAJOR LIMITATIONS

 Some customer was not willing to give proper response.

 Due to very large size of population, only a selected number of customer could be
contacted.

 Some of respondents were not co-operative they did not provide some of the details.

 Language barrier was also one of the main reasons.

 As per company rule many of the information was not disclose as the manager was
busy in their daily schedule. It was not possible for us to spend more time in
interaction with them.

 Personal biases might have come while answer the question.

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66
Conclusions

• B i g b a z a a r i s a m a j o r s h o p p i n g c o m p l e x f o r t o d a y ’s c u s t o m e r s

 I t i s a place where customers find variety of products at a reasonable price. The

price ranges and the products offered are very satisfying to the customers.

 Considering the fact that there are huge middle class families in India. It has
positioned itself in the market as a discounted store.
 T h e y o u t h generation also likes shopping and moving around big bazaar.
 Big Bazaar is not acclaimed for high class service. The staffs recruited are not very
well trained and the billing queues take a long time to move. This irritates customers
which makes them visit the store more seldom.
 The customers get all kind of products in the Big Bazaar. i.e. they are following good
merchandising mix but in some section like apparels they have to keep different
brands in order to attract more customer.
 Word of mouth publicity played major role in making Big Bazaar so popular where as
media is used to communicate new offers at the store.
 Customers are not aware and hence don't avail value added services provided by the
store.
 Customers are more satisfied with the merchandising present in the food bazaar and
household utensils section.

Suggestions given by Customers

 Entry gate guards should get more training on behavior.

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  Increase the range of other company product, especially in apparels and food items.
 Do not put rotten vegetables and fruits.
 There should be some refreshment inside the store.
 Increase the sound of announcements more than songs so that one can hear clearly the
offers.

 There should be a customer care number to solve any problems faced by customers

Recommendations

 Keep brands like Koutons Cotton County which is well known for offers.
 Cleanliness and hygiene should be maintained regularly.
 Quick services for logistics for customer.
 External environment like parking area should be increase as most of customers face
problem of parking specifically during rush hour.
 The billing time should be reduced by increasing no. of cash counter keeping in view
customer traffic intensity.
 During rush hour can make provision of less paying counter so customer who want to
purchase single product need not to give up because of long queue.
 Store layout needs to be improved.
 Proper signage should be there so that customer can locate the products easily.
 Value added services have to be improved so that most of customers will avail those
services.
 Train the sales executive towards People management

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69
BIBLIOGRAPHY

Books

 Philip Kotler- Principles of Marketing management(2008) Pearson Education,

Prentice Hall, New Delhi
 Research Methodology – M.V. Kulkarni (Everest Publishing House , 2004)

Websites

 www.futurebytes.com
 www.pantaloon.com
 www.retailindia.com
 www.wikipedia.com

News Papers

 The Times Of India

 Hindustan Times

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 Questionnaire

Name: __________

Age: ____________

Contact no: ____________

1. How do you rate Big Bazaar Prices?

Outstanding  Good  Satisfactory 

Average  Poor 

2. How do you rate quality & variety of product?

Outstanding  Good  Satisfactory 

Average  Poor 

3. How do you rate our offers and discounts?

Outstanding  Good  Satisfactory 
Average  Poor 

4. How do you rate staff’s behavior?

Outstanding  Good  Satisfactory 
Average  Poor 

5. How do you rate store’s ambience & cleanliness?

Outstanding  Good  Satisfactory 
Average  Poor 
6. How do you rate our customer service desk & in-store
announcements?

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 Outstanding  Good  Satisfactory 
Average  Poor 

7. How was your billing experience?

Outstanding  Good  Satisfactory 
Average  Poor 

8. How do you rate security’s behavior?

Outstanding  Good  Satisfactory 
Average  Poor 

9. How was your overall experience in store?

Outstanding  Good  Satisfactory 
Average  Poor 

Would you like to provide any suggestions -?

________________________________________________________
________________________________________________________
________________________________________________________
____________________

Thank you for your valuable time!!

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