MCNP - 021

ADVERTISING AND SALES PROMOTION

TECHNIQUES USED BY RETAIL BUSINESSES
WITH SPECIAL REFERENCE TO BIG BAZAAR

By

Raju
Enrolment No: 112165967

Under Guidance
Of
Taruna Rawal

1
 Submitted to the Everonn Global School of Business,
Chennai in partial fulfillment of the
requirements
for the award of the degree
Master of Business Administration (MBA)
2011-2013

Indira Gandhi National Open

University
Maidan Garhi
New Delhi – 110068.

CERTIFICATE

This is to certify that the project “ADVERTISING AND SALES

PROMOTION TECHNIQUES USED BY RETAIL BUSINESSES
WITH SPECIAL REFERENCE TO BIG BAZAAR” is an original
work of the Student and is being submitted in partial fulfillment for
the award of the Master’s Degree in Business Administration of
Indira Gandhi National Open University. This report has not been
submitted earlier either to this University or to any other

2
University/Institution for the fulfillment of the requirement of a
course of study.

SIGNATURE OF SUPERVISOR SIGNATURE

OF STUDENT

Place : Place :

Date: Date

3
:

DECLARATION

I the undersigned solemnly declare that the report of the project work
entitled “ADVERTISING AND SALES PROMOTION TECHNIQUES
USED BY RETAIL BUSINESSES WITH SPECIAL REFERENCE TO
BIG BAZAAR” is based on my own work carried out during the course
of my study under the Guidance of Mrs. Taruna Rawal

I assert that the statements made and conclusions drawn are an outcome
of the project work. I further declare that to the best of my knowledge and
belief that the project report does not contain any part of any work which
has been submitted for the award of any other degree/diploma/certificate
in this University or any other University.
 _______________

(RAJU)
Enrollment
No.112165967

ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or

indirectly contributed in the development of this work and who influenced
my thinking, behavior and acts during the course of study.

First of all I am thankful to BIG BAZAAR. Where I got the opportunity

to undertaken the project.

I am also thankful to Mrs. TARUNA RAWAL for her support,

cooperation and motivation provided to me during the training, for
constant inspiration, presence and blessings.

Lastly, I would like to thank the almighty and my parents for their moral
support and my friends with whom I shared my day-to-day experience
and received lots of suggestions that improved my quality of work.
 EXECUTIVE SUMMARY

The study of any subject is made by examining it in an organized fashion. There are
three classes of variables involved in understanding consumer behavior; STIMULUS,
RESPONSE and INTERVENING variables. Stimulus variables, such as
advertisements, products exist in both the individuals’ external environment.

These generate a sensory input to consumers. Response variables are the resulting
mental / or physical reactions of individuals who are influenced by stimulus variables.
For e.g.:- purchasing a product or forming attitudes about it could be viewed as
response variables. Many of the variables affecting consumers (such as personality,
learning and perceptions are external situations, motives, and so forth) cannot be
directly observed.
A questionnaire was prepared by us in order to conduct market survey. The
questionnaire was based on different parameters to judge and understand the consumer
behaviors and determine the best possible strategies which could be used to attract
customers.

The research carried out in this project was descriptive in nature. The study was aimed
at knowing the various eating habits of a consumer.

This project helped in understanding what exactly a customer looks in an eating joint
before entering it. It gave an idea about the essential factors that are required now a
day for an eating joint to attract customers in this competitive world.

We were also given a task to understand the customer eating habits, what a customer
wants while eating in a restaurant what all a consumer look for and what are their
expectations, how can a mall owner satisfy the needs & wants of a consumer so that
the consumer may come back & the retailer can retain its consumer.

This project helps us to figure out the different consumer eating behavior & to
understand the overall consumer perception of eating in a restaurant as well as their
demand for mall.

The trend today has been to combine shopping with various offering. For e.g. apart
from shopping there are food courts, cinema theaters & even in some an amusement
centre for children.

Shopping has made people spend not just on their requirement of goods to be bought
but to look on the totally of experience have a quick bite at McDonalds in the mall or
lets the kids play fun game while one is busy shopping or even taking the family out
for movie & having a dinner all under one roof. The benefits of this totally offering
are that many vendors get to have peoples patronize their offerings, while the

Shopping experience i.e. being enhanced, more business got by the stores at the venue.
Shopping is no longer a one time agenda for people. Various options are opening up.

CONTENT
CHAPTER PAGE NO.
S. NO.
Executive Summary 3
1. CHAPTER-1 8
1.1 INTRODUCTION 9
1.2 COMPANY PROFILE 10
1.3 INDUSTRY PROFILE 21
2. CHAPTER-2 25
2.1 LITERATURE REVIEW 26
3. CHAPTER-3 30
 3.1 NEED OF THE STUDY 31
3.2 OBJECTIVES OF THE STUDY 32
4 CHAPTER-4 33
4.1 RESEARCH METHODOLOGY 34

5 CHAPTER-5 37
5.1 DATA ANALYSIS AND INTERPRETATION 38
5.2 LIMITATION OF THE STUDY 53
6 CHAPTER-6 54
6.1 CONCLUSION 55
6.2 SUGGESTION 56
6.3 REFERENCES 57
6.4 QUESTIONNAIRE 58
CHAPTER-1
 INTRODUCTION

In saying, marketing involves the conception, pricing, promotion and distribution of

ideas, goods and services. The fundamental objective of marketing is to exchanges of
goods and services (Frances Brassington and Stephen Pettitt, 2005) By designing
products setting sensible, acceptable and justifiable prices, creating awareness and
preferences, and ensuring availability and service, the marketer can influence the
volume of exchange therefore marketing can be considered as a demand management
activity on the part of the selling company.

Promotion is an important component of marketing mix which has got a very

significant impact on the demand managing activity of marketing. The key
components of promotion includes personal selling, direct marketing, advertising,
sales promotion, and public relations. Sales promotion is a range of marketing
techniques designed with in a strategic marketing frame work to add extra value to a
particular product or services, developing a promotion strategy involve deciding on
the objectives of marketing communication. Promotion objectives are so vital that
these objectives are the key in determining the role of each components of the
promotion mix in the marketing objectives of the organisation. The role of promotion
mix components depends on the type of organization, nature of products, etc.
Promotion is a part of integrated marketing communication which recognizes the
advantages of having a complete plan to find better ways of understanding and
connecting with consumers.
COMPANY PROFILE

BIG BAZAAR
Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in
operation. It is a subsidiary of Future Group Venture Ltd's, and follows the business
model of United States-based Wal-Mart. Facilities offered by Big Bazaar online
shopping: Big Bazaar has an official website, FutureBazaar.com, which is one of the
most favorite sites among people of India for online shopping. Future Bazaar is an
online business venture of Future Group, which sells an assortment of products such
as fashion, which includes merchandise for men and women, mobile accessories,
mobile handsets and electronics like home theatres, video cameras, digital camera,
LCD TVs, kitchen appliances and many more.
Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra
and special discounts were offered on Wednesday every week, to attract the potential
buyers into their store.

Security check: At each exit of Big Bazaar, they use alarm systems or Electronic
Article Surveillance system, which detects the products that has attached tags or not.

1. Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs
and requirements.

2. 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.

3. Big Bazaar group offers more than 100 stores all over the country with an
amalgamation of Indian bazaars’ feel and touch with a convenience and choice of the
modern retail facilities

4. The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr.
Kishore Biyani. Their basic attraction associated with reasonable prices is their
Unique Selling Price.

5. Big Bazaar has become a massive hit with lower middle-class and middle class
people as a major client base.
6. Reflect the look and feel of Indian bazaars at their modern outlets.

GROUP VISION
“To deliver Everything, Everywhere, Everytime to Every
Indian Consumer in the most profitable manner.”

GROUP MISSION
1 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.
2 We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments – for classes and for
masses.
3 We shall infuse Indian brands with confused and renewed ambition
4 We shall be efficient and cost-conscious and committed to quality in whatever we do

Board of directors
1. Managing director

 Mr kishore Biyani

2. Wholetime Director

 Mr Gopikishan Biyani

 Mr Rakesh Biyani

3. Director
 Mr Shailesh Haribhakti

 Mr S.Doreswamy

 Mr Darlie Koshy

 Mr Anil Harish

BIG BAZAAR SUPER CENTER

Big Bazaar Hyper mart chain in India

Outlet 140 Outlets

Parent Group Future Group

Owner Kishore biyani

Founded 2001

Head Quarter Jogeshwari, Mumbai

Industry Retail

Tagline Is se sasta aur accha kahin nahi

Major Milestones

1 Company incorporated as Manz Wear Private Limited. Launch of

9 Pantaloons trouser, India’s first formal trouser brand.
8
7

1 Launch of BARE, the Indian jeans brand.

9
9
1

1 Initial public offer (IPO) was made in the month of May.

9
9
2

1 The Pantaloon Shoppe – exclusive menswear store in franchisee format

9 launched across the nation. The company starts the distribution of
9 branded garments through multi-brand retail outlets across the nation.
4

1 John Miller – Formal shirt brand launched.

9
9
5

1 Pantaloons – India’s family store launched in Kolkata.

9
9
7

2 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket
0 chain launched.
0
 1

2 Food Bazaar, the supermarket chain is launched.

0
0
2

2 Central – ‘Shop, Eat, Celebrate In The Heart Of Our City’ - India’s first
0 seamless mall is launched in Bangalore.
0
4

2 Fashion Station - the popular fashion chain is launched

0
0 aLL – ‘a little larger’ - exclusive stores for plus-size individuals is
5 launched

2 Future Capital Holdings, the company’s financial arm launches real

0 estate funds Kshitij and Horizon and private equity fund Indivision.
0 Plans forays into insurance and consumer credit.
6 Multiple retail formats including Collection i, Furniture Bazaar, Shoe
Factory, EZone, Depot and futurebazaar.com are launched across the
nation.
Group enters into joint venture agreements with ETAM Group and
Generali.

7P Analysis of Big Bazaar

7P Marketing Mix is more useful for services industries and knowledge intensive
industries. Successful marketing depends on number of key issues. The seven keys
issues are explained as: -
Product
Big Bazaar offers a wide range of products which range from apparels, food, farm
products, furniture, child care, toys, etc. . Products of all the major brands are
available at Big Bazaar .Also, there are many in house brands promoted by Big
Bazaar. Big Bazaar sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000
 microwave-ovens. In all, the fashion, electronics and travel segments made up about
70% of sales. Last year, these categories made up only about 60%.
Price
The tag-line is "Is se sasta aur accha aur kahin nahi". They work on the model of
economics of scale. There pricing objective is to get "Maximum Market Share". The
various techniques used at Big Bazaar are: -
 Value Pricing (EDLP - Every Day Low Pricing): Big Bazaar promises consumers
the lowest available price without coupon clipping, waiting for discount promotions,
or comparison shopping.
 Promotional Pricing: Big Bazaar offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Big
Bazaar also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga
Pooja).
 Differentiated Pricing: Time pricing, i.e., difference in rate based on peak and non-
peak hours or days of shopping is also a pricing technique used in Indian retail, which
is aggressively used by Big Bazaar.
 Bundling: Selling combo-packs and offering discount to customers. The combo-packs
add value to customer.

Place

 Big Bazaar stores are located in 50 cities with 75 outlets.Big Bazaar has presence in
almost all the major Indian cities. They are aggressive on their expansion plans.

Promotion
 Big Bazaar started many new and innovative cross-sell and up-sell strategies in Indian
retail market. The various promotion techniques used at Big Bazaar include "saal ke
sabse saste teen din", Future Card (the card offers 3% discount), Shakti Card,

Brand Endorsement by M. S. Dhoni, Exchange Offer - ‘Junk Swap Offer', Point-of-

Purchase Promotions.
Advertising has played a crucial role in building of the brand. Big Bazaar
advertisements are seen in print media, TV, Radio (FM) and road-side bill-boards.

People

They are one of the key assets for any organization. The salient features of staff of Big
Bazaar are: -
 Well-trained staff, the staff employed by Big-Bazaar are well-suited for modern retail.
 Well-dressed staff improves the overall appearance of store.
 Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so
staff is empowered to take innovative steps.
 Employs close to 10,000 people and recruits nearly 500 people every month.
 Use of technology like scenario planning for decision making.
 Multiple counters for payment, staff at store to keep baggage and security guards at
every gate, makes for a customer-friendly atmosphere.

Process
The goods' dispatch and purchasing area has certain salient features which include: -
 Multiple counters with trolleys to carry the items purchased.
 Proper display / posters of the place like (DAL, SOAP, etc.).
 Home delivery counters also started at many places.
Advertising: The Essential of Brand Building Process

Advertising is an essential component of brand building. The advertisement and brand

building is done through various ways, the techniques used are: -
Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines
are modified according to demographic profile of customers. These catch-phrases
appeared on hoardings and newspapers in every city where Big Bazaar was launched.
Everybody understood and connected easily with these simple one-liners. The catch-
liners include "Hindi - Chane ke bhaw kaaju", "Bengali - Rui er dame illish", "Hindi -
Stall ke bhaw balcony", etc.
Print Ads: Big Bazaar newspaper advertisements are present just before launch of any
new scheme. This creates aura about the Big Bazaar brand in the minds of customers.
TV Ads: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar
commercials are shown on various channels in India. Presently, Fashion@Big Bazaar
commercial is aired.
Road-side Advertisements: Big Bazaar bill-boards are displayed on prime locations
in various cities as a brand building exercise. They display the catch-phrases now-a-
days.
Radio Ads: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-
days, it is replaced by advertisements on FM channels. This informs customers about
all new happenings at Big Bazaar.
Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the
latest invention of the Indian iconic brand. In an effort to take the Fashion to the
masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group,
organized a three-day Fashion Show on the streets of Bandra, Mumbai.
Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities
for advertising and marketing of its brand name. The current campaign is starred by
Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. Earlier
Himesh Reshammiya and Sanath Jaisuriya were associated with Big Bazaar.

INDUSTRY PROFILE

Retail Sector in India

Retail is booming sector in India. Retail, one of India’s largest industries, has
presently emerged as one of the most dynamic and fast paced industries with several
players entering the market. Retail Accounts for over 10 per cent of the country’s GDP
and around eight per cent of the employment in India.

As the contemporary retail sector in India is reflected in sprawling shopping centers,

multiplex- malls and huge complexes offer shopping, entertainment and food all under
one roof, the concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. This has also contributed to
large scale investments in the real estate sector with major national and global players
investing in developing the infrastructure and construction of the retailing business.
The trends that are driving the growth of the retail sector in India are

 Low share of organized retailing

 Falling real estate prices

 Increase in disposable income and customer aspiration

  Increase in expenditure for luxury items

Another credible factor in the prospects of the retail sector in India is the increase in
the young working population. In India, high pay-packets, nuclear families in urban
areas, along with increasing working-women population and emerging opportunities
in the services sector. These key factors have been the growth drivers of the organized
retail sector in India.

The retailing configuration in India is fast developing as shopping malls are

increasingly becoming familiar in large cities. When it comes to development of retail
space specially the malls, the Tier II cities are no longer behind in the race.

India is being seen as a potential goldmine for retail investors from over the world and
India has the top destination for retailers for an attractive emerging retail market.
India’s vast middle class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets. Even though India has well over 5
million retail outlets, the country sorely lacks anything that can resemble a retailing
industry in the modern sense of the term. This presents international retailing
specialists with a great opportunity. The organized retail sector is expected to grow
stronger than GDP growth in the next five years driven by changing lifestyles,
burgeoning income and favorable demographic outline.
FDI in Retail Sector

Retailing is the largest private sector industry in the world economy with the global
industry size exceeding $6.6 trillion and India is the top destination for retail investors.
And the further upsurge is anticipated in the retail sector as the Government of opened
up 51% FDI in single brand retail outlets. And as the government is in a process to
initiate a second phase of reforms, it is cautiously exploring the avenues for multi-
brand segment. The Government is seeking for these options keeping in view the
existing social framework of India and the will ensure that the entry of global retail
giants do not displace the existing employment in the retail business.

Industry experts are sensitive to the point that local markets have an edge over the
retail investors in India as they have unique advantages such as an understanding of
local needs and extended service like home delivery. As the FDI influence on the
Indian retail sector sets in, the total size of the retail trade is expected to grow
extensively in the coming years and the consumer segments patronizing the big malls
will create frenzy for organized retailing predicting a growth of 25-30 per cent per
annum over the next decade. Moreover, Indian retail chains would get integrated with
global supply chains since FDI will bring in technology, quality standards and
marketing thereby, leading to new economic opportunities and creating more
employment generation.

Industry trends for retail sector indicate that organized retailing has major impact in
controlling inflation because large organized retailers are able to buy directly from
producers at most competitive prices. World Bank attributes the opening of the retail
sector to FDI to be beneficial for India in terms of price and availability of products as
it would give a boost to food products, textiles and garments, leather products, etc., to
benefit from large-scale procurement by international chains; in turn, creating jobs
opportunities at various levels.

PROMOTIONAL OFFERS

Meaning

Promotion is an important marketing force that provides extra incentives to achieve

sales. Promotion is an important marketing tool as compared to advertisements and
sales force. Promotion is both short term and long term activities carried.

ROLE OF PROMOTION

 Promotions are an extremely valuable tool for the marketing of brands.

 Like all other tools, promotions can make a valuable contribution to marketing
when they are properly used.

 Promotions are offered to the customers to get the sales and to increase their
market share

 The short term promotions are towards increasing the sales and the long term
sales are towards increasing the customer base.
WHEN TO USE PROMOTION

 A brands quality is inferior to competition

 A brands advertising is not as persuasive as competitive

 A new brand is being introduced

BELOW THE LINE SALES PROMOTION

Below the line sales promotions are short-term incentives, largely aimed at consumers.

 Methods of below the line sales promotion

1. Price promotions
Price promotions are also commonly known as" price discounting". These can
be done in two ways:

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand
reputation or just a temporary sales boost (during the discounts) followed by a
lull when the discount would be called off.

2. Coupons

Coupons are another, very versatile, way of offering a discount. Consider the
following examples of the use of coupons:

- On a pack to encourage repeat purchase

- In coupon books sent out in newspapers allowing customers to redeem the
coupon at a retailer
- A cut-out coupon as part of an advert
- On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate
– this is the proportion of customers actually using the coupon.

It must be ensured when a company uses coupons that the retailers must hold
sufficient stock to avoid customer disappointment.

Use of coupon promotions is often best for new products or perhaps to

encourage sales of existing products that are slowing down.

3. Gift with purchase

The "gift with purchase" is a very common promotional technique. In this

scheme, the customer gets something extra along with the normal good
purchased. It works best for

- Subscription-based products (e.g. magazines)

- Consumer luxuries (e.g. perfumes)

4. Competitions and prizes

This is an important tool to increase brand awareness amongst the target

consumer. It can be used to boost up sales for temporary period and ensure
usage amongst first time users.


 5. Money refunds
Here, a customer receives a money refund after submitting a proof of purchase
to the manufacturer.
Customers often view these schemes with some suspicion – particularly if the
method of obtaining a refund looks unusual or onerous.


6. Frequent user / loyalty incentives
Repeat purchases may be stimulated by frequent user incentives. Perhaps the
best examples of this are the many frequent flyer or user schemes used by
airlines, train companies, car hire companies etc.

7. Point-of-sale displays
shopping habits are changing for the people living in metropolitan cities.
People prefer big retail outlets like Big Bazaar to local kirana stores. Most of
the decisions of buying are taken by the virtue of point-of-sale displays in
these retail outlets.
BTL PROMOTION activities of Big Bazaar:
BTL promotions are gaining popularity among all big companies nowadays
considering their effectiveness because of the "individual customer promotion"
at a price, which is much lesser than the normal media promotions.
• Low prices on Wednesday Low prices on Wednesday
• Concept of Big Day
• Promotional offers
School Jao Khushi Khushi
Khushi Ki Barsaat
Happy Father’s Day


CHAPTER-2
 LITERATURE REVIEW

WHAT IS RETAILING

Retailing is all the activities involved in selling goods and services directly to final
consumers for their personal, non-business use. The word retail is derived from the
French word retailer, meaning to cut a piece off or to break bulk. A retailer buys goods
or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells individual items or small quantities to the general
public or end user customers, usually in a shop, also called store. Retailers are at the
end of the supply chain. Marketers see retailing as part of their overall distribution
strategy.

Retailing is one area of the broader term, e-commerce. Retailing is buying and selling
both goods and consumer services. With more number of educated and literate
consumers entering the economy and market, the need for reading the pulse of the
consumers has become very essential.
Retail marketing is undergoing radical restructuring. This is because of increase in
gross domestic product, increase in per capita income, increase in purchasing power
and also the ever changing tastes and preferences of the people. The entry of plastic
money, ATMs, credit cards and debit cards and all other consumer finances, the taste
for the branded goods also added for the evolution of retail marketing.

Retail marketing is not just buying and selling but also rendering all other
personalized consumer services. With the RM picking up it has given a new look for
various fast moving capital goods (FMCG) goods. This not only increased the demand
for various goods in the market but also made retail marketing the second largest
employment area, the first being agriculture.

TYPES OF RETAILING

Retailing can be classified under two heads: 1 Store Retailing 2 Non-store Retailing.
“Retailing is a distinct, diverse and dynamic sector” . “It is an activity of enormous
economic significance to most developed nations”. It generates revenue and wealth for
nation, encourages investments and brings technological advancements. Stated that “it
brings employment and creates wealth of the economy”. “It is a vibrant part of our
changing society and a major source of employment” Retailing performs activities at
larger level so it requires massive manpower to handle and manage its operations.
Retailing also helps society in general by providing goods and services in reasonable
price and increasing their standards of living. “Retailing activity can be viewed as a
significant contributor to the economy in general”.
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 consumers on a relatively small scale.”
Retailing makes products and services available in large quantities. Retailers produce
or order the products/services in bulk so they can take advantage of economy of scale
and thus they can formulate competitive pricing strategies. Products and services are
generally sold through the store or on the internet.

Store Retailing

Retail stores come in a variety of shapes and sizes, and new retail types keep
emerging. They can be classified by one or more of several characteristics:

1Amount of service

2Product line

3Relative prices

4Control of outlets

5Type of store cluster

1) AMOUNT OF SERVICE

Different products require different amounts of service, and customer service

preferences vary:

Self-service retailers

Customers are willing to perform their own "locate-compare-select" process to save

money. Today, self-service is the basis of all discount operations, and typically is used
by sellers of convenience goods (such as supermarkets) and nationally branded, fast
moving shopping goods (such as catalog showrooms).

Limited service retailers

Retailers such as Sears and J. C. Penney, provide more sales assistance because they
carry more shopping goods about which consumers need information. Their increased
operating costs resulting higher prices.

Full service retailers

Like specialty stores and first-class department stores, have salespeople to assist
customers in every phase of the shopping process. Full service stores usually carry
more specialty goods for which customers like to be waited on. They provide more
liberal return policies, various credit plans, free delivery, home servicing, and extras
such as lounges and restaurants.

2) PRODUCT LINE:

Retailers can also be classified by the depth and breadth of their product assortments.
The depth of a product assortment refers to the number of different versions of each
product that are offered for sale. The breadth of the assortment refers to the number of
different products that the store carries.

. General Merchandisers – These retailers carry a wide range of product categories

(i.e., broad width) though the number of different items within a particular product
line is generally limited (i.e., shallow depth).

. Multiple Lines Specialty Merchandisers - Retailers classified in this category

stock a limited number of product lines (i.e., narrow width) but within the categories
they handle they often offer a greater selection (i.e., extended depth) than are offered
by general merchandisers. For example, a consumer electronics retailer would fall into
this category.

Single Line Specialty Merchandisers – Some retailers limit their offerings to just
one product line (i.e., very narrow width), and sometimes only one product (i.e., very
shallow depth). This can be seen online where a relatively small website may sell a
single product such as computer gaming software. Another example may be a small
jewelry store that only handles watches.

3) RELATIVE PRICES

Retailers can also be classified by the prices they charge. Most retailers charge regular
prices and offer normal quality goods and customer service. Some offer higher quality
goods and service at higher prices

 Discount Pricing – Discount retailers are best known for selling low priced
products that have a low profit margin (i.e., price minus cost). To make profits
these retailers look to sell in high volume. Typically discount retailers operate
with low overhead costs by vigorously controlling operational spending on
such things as real estate, design issues (e.g., store layout, website
presentation), and by offering fewer services to their customers.

 Competitive Pricing – The objective of some retailers is not to compete on

price but alternatively not to be seen as charging the highest price. These
retailers, who often operate in specialty markets, aggressively monitor the
market to insure their pricing is competitive but they do not desire to get into
price wars with discount retailers. Thus, other elements of the marketing mix
(e.g., higher quality products, nicer store setting) are used to create higher
value for which the customer will pay more.

 Full Price Pricing – Retailers targeting exclusive markets find such markets
are far less price sensitive than mass or specialty markets. In these cases the
additional value added through increased operational spending (e.g., expensive
locations, more attractive design, more services) justify higher retail prices.
 CHAPTER-3

NEED OF THE STUDY

In this competitive world, there exists huge competition between organizations of

retail sector. The company which adopts best sales promotion activities will have
better profits. So, it is necessary to know company’s sales promotion activities which
results in sales growth and turn profits to the organization.
 OBJECTIVE OF THE STUDY

Following are the objectives of the study:

 To find out the influence of Advertising and Sales promotion on the sales of the
Big Bazaar

 To find the most effective tool of Sales promotion technique to entice customers
used by Retail businesses.

 To study various advertising and sales promotion techniques used by Big Bazaar.

 To find out the influence of Advertising and Sales promotion on the sales of Big
Bazaar.

 To find the effectiveness of the Brand recall and Recognition of Big Bazaar.
 To find out the ranking of Big Bazaar with its relative competitors as per the
customers.

 To find certain new techniques that Big Bazaar can adopt to improve its services
 CHAPTER-4

RESEARCH METHODOLOGY

Methodology adopted for study

 Observation Method (Observing the working of various departments like
finance, marketing, purchasing, production.)

 Questionnaire method (Enquiring about the Sales promotion techniques

adopted by Big Bazar from its Managers and employees, also from the
cusomers visiting the store)
  Visiting & surfing websites of company.

Meaning
Research Methodology is a set of various methods to be followed to find out various
Information’s regarding market strata of different products. Research Methodology is
required in every industry for acquiring knowledge of their products.

Area of study
The study is exclusively done in the area of marketing. It is a process requiring care,
sophistication, experience, business judgment, and imagination for which there can be
no mechanical substitutes.

Sources of Data
 Primary Source - The primary data was collected by means of a survey.
Questionnaires were prepared and customers of the big bazaar at two branches
were approached to fill up the questionnaires. The questionnaire contains 20
questions which reflect on the type and quality of services provided by the Big
bazaar to the customers. The response of the customer is recorded on a grade
scale of strongly disagree, disagree, uncertain, agree and strongly agree for
each question. The filled up information was later analyzed to obtain the
required interpretation and the findings.

 Secondary Source - In order to have a proper understanding of the customer

service of Big Bazaar a depth study was done from the various sources such as
books, a lot of data is also collected from the official websites of the Big
bazaar and the articles from various search engines like Google, yahoo search
and answers.com.
RESEARCH DESIGN
The research design is exploratory till identification of customer services parameters.
Later it becomes descriptive when it comes to evaluating the promotion techniques of
the big bazaar.

Descriptive research, also known as statistical research, describes data and

characteristics about the sales promotion techniques being studied. Descriptive
research answers the questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, descriptive research cannot be used to create a
causal relationship, where one variable affects another.
The description is used for frequencies, averages and other statistical calculations.
Often the best approach, prior to writing descriptive research, is to conduct a survey
investigation. Qualitative research often has the aim of description and researchers
may follow-up with examinations of why the observations exist and what the
implications of the findings are.

RESEARCH SAMPLE

SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample
from the universe to know about its characteristics.
 Sampling Units: Customers and Empolyees of Big bazaar.

 Sample Technique: Random Sampling.

 Research Instrument: Structured Questionnaire.

 Contact Method: Personal Intervie/Filling the Questionnairs.

SAMPLE SIZE:
The work is a case of Big bazaar one of the Retail Sector industry together
representing great per cent of the market share of Indian retail sector. The survey was
conducted in the city of Chandigarh with two branches of big bazaar, with 100
customers as respondent.

DATA COLLECTION TOOL

Data is collected from various customers through personal interaction. Some other
information is collected through secondary data also. Data was collected through a
structured questionnaire, Likert Scale is used for analysis.
Likert scale is simply a statement which the respondent is asked to evaluate according
to any kind of subjective or objective criteria, generally the level of agreement and
disagreement is measured Likert scaling is a bipolar scaling method, measuring either
positive or negative response to a statement.
 CHAPTER-5

DATA INTREPRETATION AND

ANALYSIS
GRAPHS AND FINDINGS
Concept: To survey whether the customers visiting at Big Bazaar are aware of the
Promotional offers
Table No: 1

Are you aware of promotional offers at Big Bazaar

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 210 84.0 84.0 84.0
No 40 16.0 16.0 100.0
Total 250 100.0 100.0
 Graph No: 1

Are you aware of promotional offers at Big Bazaar

Yes
No

16.00%

84.00%

Interpretation: Majority (84%) of the customers surveyed were aware of the

Promotional offers at Big Bazaar.
Concept: To study mode of communicating promotional offers to the customers

Table No: 2

What was the mode of Communication

Cumulative
Frequency Percent Valid Percent Percent
Valid TV 35 14.0 16.7 16.7
News Paper 136 54.4 64.8 81.4
Hordings 39 15.6 18.6 100.0
Total 210 84.0 100.0
Missing System 40 16.0
Total 250 100.0
 Graph No: 2

What was the mode of Communication

70

65
60

50

40

30

20
19
17
Percent

10

0
TV News Paper Hordings

What was the mode of Communication

Interpretation: News paper was the most effective mode for communication,
followed by hoardings and TV advertisements.
Concept: To check the alertness of customers towards the announcements made at
Big Bazaar during shopping
Table No: 3

Did you notice/hear about the Promotional offers Today

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 232 92.8 92.8 92.8
No 18 7.2 7.2 100.0
Total 250 100.0 100.0
 Graph No: 3

Did you notice/hear about the Promotional offers Today

Yes
No

7.20%

92.80%

Interpretation: Promotional offers are noticed and heard by the customers during
their shopping
Concept: To study frequency the sample customers visited Big Bazaar
Table No: 4
How frequently you visit Big Bazaar
Fre Per Valid Cum
que cen Perc ulativ
ncy t ent e
Perc
 ent

V Occasion
9 3.6 3.6 3.6
a ally
li
d Once in a 16.
42 16.8 20.4
month 8

Once in a 65.
163 65.2 85.6
week 2

Daily 4 1.6 1.6 87.2

As and
12. 100.
when 32 12.8
8 0
required

Total 100 100.

250
.0 0

Graph No: 4

How frequently you visit Big Bazaar

60
Percent

40

65.20%

20

16.80%
12.80%

3.60%
1.60%
0
Occasionaly Once in a month Once in a week Daily As and when
required
How frequently you visit Big Bazaar
Interpretation: 65% of the customers visit Big Bazaar once in a week, either on
Wednesday or week ends, followed by customers visiting once in a month and as and
when required.
Concept: Effectiveness of promotional offers inducing the customers to make
purchases

Table No: 5

Promotional offers at Big Bazaar are attractive and induce me to make a purchase

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Agree 65 26.0 26.0 26.0
Agree 100 40.0 40.0 66.0
Neither Agree/Nor
56 22.4 22.4 88.4
Dis-agree
Dis-agree 29 11.6 11.6 100.0
Total 250 100.0 100.0

Graph No: 5
 Promotional offers at Big Bazaar are attractive and induce me
50

40
40

30

26

20 22

10 12
Percent

0
Strongly Agree Agree Neither Agree/Nor Di Dis-agree

Promotional offers at Big Bazaar are attractive and induce me to make a

Interpretation: 26% strongly agree, 40% agree, 22% neither agree nor dis-agree and
remaining customers dis-agree

Concept: To study customer’s preferences of the commodities

Table No: 6

Rank the products that you expect promotional offers

Cumulative
Frequency Percent Valid Percent Percent
Valid Clothing 125 50.0 50.0 50.0
Groceries 80 32.0 32.0 82.0
Electronic items 32 12.8 12.8 94.8
Furnitures 13 5.2 5.2 100.0
Total 250 100.0 100.0
 Rank the products that you expect promotional offers

50

40

30
Percent

50.00%

20

32.00%

10

12.80%

5.20%

0
Clothing Groceries Electronic items Furnitures
Rank the products that you expect promotional offers

Graph No: 6

Interpretation: Customers preferred clothing followed by groceries, electronic items

and furniture’s.

Concept: To study whether customers availed benefit of promotional offers

Table No: 7
 Have you availed any offers during your recent visit

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 214 85.6 85.6 85.6
No 36 14.4 14.4 100.0
Total 250 100.0 100.0

Graph No: 7

Have you availed any offers during your recent visit

Yes
No

14.40%

85.60%

Interpretation: Majority (85%) of customers availed benefit of promotional offers

Concept: What did you opt for?

The customers may go in for Free offers or discount offers. To study the customers
preference of offers this question was asked.

Table No: 8

What did you opt for

Cumulative
Frequency Percent Valid Percent Percent
Valid Discount offer 91 36.4 42.5 42.5
Free offer 123 49.2 57.5 100.0
Total 214 85.6 100.0
Missing System 36 14.4
Total 250 100.0

Graph No: 8

What did you opt for

Missing

Discount offer

Free offer

Interpretation: 49% of the customers availed Free offers 36% availed Discount
offers.
Concept: Did customers communicate benefit of promotional offers to their friends
and relatives

Table No: 9

Do you communicate offers at Big Bazaar to your friends

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 218 87.2 87.2 87.2
No 32 12.8 12.8 100.0
Total 250 100.0 100.0

Graph No: 9

Do you communicate offers at Big Bazaar to your friends

Yes
No

12.80%

87.20%
Interpretation: Majority (87%) of customers did communicate benefits of
promotional offers to their friends and relatives.

Concept: Where do you find the following better?

1. Price

2. Quality

3. Product range

4. Promotional offers

5. Ambience

Concept: Price

Table No: 10
Price

Cumulative
Frequency Percent Valid Percent Percent
Valid Big Bazaar 215 86.0 86.0 86.0
Other retail stores 35 14.0 14.0 100.0
Total 250 100.0 100.0

Graph No: 10
 Price

100

80
Percent

60

86.00%
40

20

14.00%

0
Big Bazaar Other retail stores
Price

Interpretation: 86% of customers find price better compared to other retail stores

Concept: Quality

Table No: 11

Quality

Cumulative
Frequency Percent Valid Percent Percent
Valid Big Bazaar 190 76.0 76.0 76.0
Other retail stores 60 24.0 24.0 100.0
Total 250 100.0 100.0

Graph No: 11
 Quality

80

60
Percent

40
76.00%

20

24.00%

0
Big Bazaar Other retail stores
Quality

Interpretation: Quality at Big Bazaar is good as compared to other retail stores

Concept: Product Range

Table No: 12
 Range

Cumulative
Frequency Percent Valid Percent Percent
Valid Big Bazaar 240 96.0 96.0 96.0
Other retail stores 10 4.0 4.0 100.0
Total 250 100.0 100.0

Graph No: 12

Range

100

80

60
Percent

96.00%

40

20

4.00%
0
Big Bazaar Other retail stores
Range

Interpretation: (96)% of Customers feel product range good at Big Bazaar

Concept: Promotional offers

Table No: 13

Offers

Cumulative
Frequency Percent Valid Percent Percent
Valid Big Bazaar 218 87.2 87.2 87.2
Other retail stores 32 12.8 12.8 100.0
Total 250 100.0 100.0

Graph No: 13

Offers

100

80

60
Percent

87.20%
40

20

12.80%

0
Big Bazaar Other retail stores
Offers
Interpretation: Promotional offers are good compared to other retail stores

Concept: Ambience

Table No: 14
 Ambience

100

80

60
Percent

96.80%

40

20

3.20%
0
Big Bazaar Other retail stores
Ambience

Ambience

Cumulative
Frequency Percent Valid Percent Percent
Valid Big Bazaar 242 96.8 96.8 96.8
Other retail stores 8 3.2 3.2 100.0
Total 250 100.0 100.0

Graph No: 14
Interpretation: Majority (97%) of the customers find Ambience very good

Concept: To study whether Customers feel like coming to Big Bazaar to avail the
benefits of the offers
Table No: 15

Do offers make you feel like visiting Big Bazaar

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 226 90.4 90.4 90.4
No 24 9.6 9.6 100.0
Total 250 100.0 100.0

Graph No: 15

Do offers make you feel like visiting Big Bazaar

Yes
No

9.60%

90.40%
Interpretation: Majority (90%) of customers are attracted to offers and hence they
will shop frequently at Big Bazaar
 LIMITATIONS OF STUDY

 Data collection cannot be asserted to be free from errors, as the sample

size is small

 The project is done for the partial fulfillment of the MBA program

 Time is the major limiting factor as the available time for survey was
only three months.

 The accuracy of the findings is trusted by the accuracy of the statistical

tools used for analysis.

Few respondents were reluctant while answering the questions due to their busy
schedule
 CHAPTER-6

FINDINGS

 Majority (84%) of the customers surveyed were aware of the Promotional

offers at Big Bazaar
 Newspaper was the most effective mode for communication, followed by
hoardings and TV advertisements.
 Promotional offers are noticed and heard by the customers during their
shopping
 65% of the customers visit Big Bazaar once in a week, either on Wednesdays
or week ends, followed by customers visiting once in a month and as-and-
when required.
 26% strongly agree, 40% agree, 22% neither agree nor disagree and remaining
customers disagree
 Customers preferred clothing followed by groceries, electronic items and
furnitures
 Majority (85%) of customers availed benefit of promotional offers
 49% of the customers availed Free offers 36% availed Discount offers.
 Majority (87%) of customers did communicate benefits of promotional offers
to their friends and relatives.
 86% of customers find price better compared to other retail stores
 Customers found Quality at Big Bazaar good as compared to other retail stores
 Customers feel product range good at Big Bazaar
 Promotional offers are good compared to other retail stores as per the
customers

SUGGESTIONS

 16% of the surveyed customers were not aware of promotional offers, so the
Company should ensure that maximum customers know about promotional
offers visiting Big Bazaar and there should make aware of offers to general
public.

 34% of the customers are not attracted to promotional offers because of short
range of electronic items and some doubt the quality of the products on which
promotional offers are declared. The Company should take note of this.
 Some customers are disappointed because of short period of promotional
offers as they visit Big Bazaar after the offer period is over. Such customers
should be convinced that similar offers would be declared soon.

 The duration of the discount offers must be increased, so that more number of
customers can avail the benefit.

 Most of the customers prefer clothing (50%) and groceries (32%) , the
Company has to attract the customers towards and electronic items and
furnitures

 The promotional offers on Wednesdays can also be extended to Tuesdays and

Sundays so that more number of customers will get benefit of the offers and
thus sales increase.

 The employees of Big Bazaar should be discouraged to take the benefit of

offers which are meant for customers

CONCLUSION

 Promotional offers play an important role to increase the sales in short terms

 Chandigarh population is experiencing a new pattern of shopping

  The customer buying pattern has changed with the introduction of Big Bazaar
in Belgaum

 The foot fall has increased at Big Bazaar

 Customers are exposed to new brands and they are becoming brand savvy

Questionnaire

1) Are you aware of promotional offers at Big Bazaar? (If No, please go to question
No. 3)
Yes No

2) If yes, what was the mode of communication?

TV News Paper Hoardings

3) Did you notice/ hear about the promotional offers today?

Yes No

4) How frequently you visit Big Bazaar

Occasionally Once in a month Once in a week

Daily As and when required

5) The Promotional offers at Big Bazaar are attractive and induce me to make a
purchase?

Strongly Agree Agree Neither Agree/ Nor Dis-agree Dis-agree Strongly

Dis-agree

6) For which range of products/brands you expect promotional offers? (Please Rank
from scale 1being high to 4 being lowest)

Clothing Groceries Electronic items Furniture

7) Have you availed any offers during your recent visits? (If No, please go to question
No. 9)

Yes No

8) What did you opt for?

Discount offer Free offer Others

9) Do you communicate offers at Big Bazaar to your friends/relatives?

Yes No

10) Where do you find the following better (please mark)

At Big Bazaar At other Retail

shops

Price

Quality

Product range

Promotional Offers

Ambience

11) Do offers make you feel like visiting Big Bazaar again?
Yes No