You are on page 1of 88

A

RESEARCH REPORT
ON
To study the Customer Relationship
Management
In Retail Sector (Big Bazaar)

SUBMITTED
TOWARDS PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (M.B.A.)

SESSION 2009-2011

SUBMITTED TO: SUBMITTED BY:


Ms. Shashi Gupta sagar Srivastava
Faculty (Deptt. Of Management ROLL.NO.0909670083
V.I.E.T. Ghaziabad M.B.A. 3rd SEM.

VISHVESHWARYA INSTITUTE OF ENGINEERING &


TECHNOLOGY, GHAZIABAD (U.P.)

Vishveshwarya Institutes of Engineering & Technology 1


VISHVESHWARYA INSTITUTE OF
ENGINEERING & TECHNOLOGY

GHAZIABAD (U.P.)

DEPARTMENT OF MANAGEMENT (M.B.A.)

CERTIFICATE

This is to certify that the project titled “To study the Customer Relationship

Management In Retail Sector (Big Bazaar)I” Submitted by Sagar Srivastava Roll No.

0909670083 to U.P. Technical University, Lucknow for the degree. Master of

Business Adminis (M.B.A.), is a bonafied record of work carried out by the above

mentioned student in this Institute. It is further certified that this project has been submitted

to U.P. Technical University , Lucknow for the partial fulfillment of the requirement of the

course of study.

Dr. Surender Tiwari Ms. Shashi Gupta

(H.O.D of Management) (Project Guide)

Vishveshwarya Institutes of Engineering & Technology 2


Vishveshwarya Institutes of Engineering & Technology 3
DECLARATION

I ‘Sagar Srivastava’ hereby declares that this project report titled ‘To study the

Customer Relationship Management In Retail Sector (Big Bazaar)’ is a genuine

work done by me. Information presented here is correct to the best of my knowledge.

Also the report presented has not been submitted anywhere else.

Sagar Srivastava

M.B.A – 3rd sem

Roll No. 0909670083

Vishveshwarya Institutes of Engineering & Technology 4


PREFACE

Vishveshwarya Institutes of Engineering & Technology 5


PREFACE

Master of Business Administration (M.B.A.) programme is one of the most

reputed professional courses in the field of management. This course includes both

theory and its applications as per contents of its curriculum. Research report is an

integral part of Master of Business Administration programmed of Vishveshwarya

Institute of Engg. & Technology. It give exposure to our practical knowledge and also

to get interact with the various aspects of present market conditions. Each student is

required to undergo practical training , after the .completion of third semester

examination.

The Resaserch project programmers are designed to give the managers the future

of the corporate happenings and work culture. The real life situation is really different

from the stimulated exercise enacted in an artificial environment inside. The Resaserch

project programmers are designed, so that the managers or tomorrow do not feel when

the time comes to take responsibilities

The report presented here is a result of my hard work. This project helps me to

learn about of working of retail sector.

Vishveshwarya Institutes of Engineering & Technology 6


Vishveshwarya Institutes of Engineering & Technology 7
ACKNOWLEDGEMENT

It’s a privilege to express my sincere indebtedness and profound sense of gratitude to my

research guide Ms. Shashi Gupta, whose active association, constant encouragement,

untiring support and generous efforts enabled me to layout the work of this research

report. This research would never have taken this final shape without her watchful help.

I would like to thanks my parents for their valuable & moral support.

All other faculty members, who all courteously responded to my queries and guided me

in giving the final shape to the research report.

(SAGAR SRIVASTAVA)

Vishveshwarya Institutes of Engineering & Technology 8


Vishveshwarya Institutes of Engineering & Technology 9
Table of content

1. Executive Summery 12

2. Objective 14

3. Introduction 16

• Trend in Retail market

• CRM

• Advantage of CRM

• Process of CRM

• Consumer Behaviour

4. Research Methodology 39

5. Data Analysis & Interpretation 42

6. Findings 58

7. Swot Analysis 60

8. Limitation 63

9. Conclusion 65

9. Recommendations 68

10 Questionnaire 76

11. Bibliography 83

Vishveshwarya Institutes of Engineering & Technology 10


Vishveshwarya Institutes of Engineering & Technology 11
Executive Summary

The Indian retail industry is now beginning to evolve in the line with the

transformation that has swept other large economies.The liberalization of the consumer

goods industry initiated in the mid-80’s and accelerated through the 90’s has begun to

impact the structure and conduct of the retail industry.

The concept retail which includes the shopkeeper to customer interaction, has taken

many forms and dimensions, from the traditional retail outlet and street local market

shops to upscale multi brand outlets, especially stores or departmental stores.

The objective being to assess the various parameters that influences a buyer to visit or

shop at departmental store thereby contributing to its turnover (in terms of sales and

profits) hence leading to its overall success.

The extensive research brought me to conclude that departmental stores are soon

emerging on the top priority lists, amongst the shopping spree in Delhi and NCR, as they

seem to derive immense pleasure of convenience and exposure to variety under one roof,

in their extremely busy lives, when they don’t have time for things.

Though some of the customers perceive departmental stores to be expensive and only

high income category’s cup of tea, the stores make constant efforts to induce them to at

least visit the store at once during the sale period, or discount offers.

Hence this document entails me through these aspects in great detail, helping me to

understand the concept of retail marketing through departmental stores in Delhi.

Vishveshwarya Institutes of Engineering & Technology 12


Vishveshwarya Institutes of Engineering & Technology 13
OBJECTIVE OF STUDY

• To explore current perceptions, attitudes & motivations towards Retail market

• To understand their current purchase decision making process

• To understand the service quality provide by retail market

• Where the retail market stand in the global scenario.

• To see the opportunity and threat of the retail market.

• What are the strong point where the retail market are doing well.

• To study about the future potential of retail market.

Vishveshwarya Institutes of Engineering & Technology 14


Vishveshwarya Institutes of Engineering & Technology 15
The Retail Marketing Revolution - An Introduction

“Any business that directs its marketing efforts towards satisfying the final

consumer based upon the organization of selling goods and services as a means of

distribution”

By 2010, the list of India's top 10 retailers will have at least 5 Indian corporates.

Retail Marketing will go through a tremendous change in India this millennium. It will

change India's cities, its people, and its households. The Indian consumer is reportedly

the largest spender in Singapore and London. It is, therefore, strange that there have, so

far, been few efforts to present the product in the right kind of environment in India.

Indeed, the right shopping experience does induce Indian consumers to spend more.

This is evident from the experiences of retail-outlets like Music World, Big Bazaar,

Spencer’s, Crosswords, The Home Store, Ebony, Bigjo’s, Saboos, Standard, Nanz, Vijay

Store and Janaki Das & Sons, Westside etc.

Factors affecting Retail marketing

The development of organized retail is dependent on the efforts of several agencies

and institutions. A glimpse of the last 2 decades of the previous century proves

illuminating. Large-format retailing started with outlets like Vivek's and Nalli's in

Chennai and Kidskemp in Bangalore, and, at another level, with manufacturer-retail

brands like Bata, Bombay Dyeing, and Titan.

Vishveshwarya Institutes of Engineering & Technology 16


Government: The first among these is the government. In a country as big as India

and with as many states as ours, it is imperative that the Central government and all state

governments bring in Value Added Taxation or a unified taxation system to ensure that

the tax-regimes are the same across the country.

The laws governing retail real estate should also be looked into, so that it is possible

to develop retail-estate beyond the city-limits. Apart from providing entertainment and

retail opportunities, this will also decongest the city center and facilitate the development

of suburbs. The relevant rules should also be amended to allow retail-stores to operate 7

days a week, 12 hours a day.

Nuclear Families: Given the hours most urban consumers keep at work, and

keeping in mind the increase in the number of nuclear families, this may, indeed, make

sense. This will also help people enjoy their evenings, out at malls.

Developers: The second group, whose participation is essential in making retail a

boom-sector in this millennium, comprises developers. Most properties are developed

without considering the end user; thus, we sometimes find high-ceilinged offices and

low-ceilinged retail stores. Often, the shopper's convenience is not taken into

consideration while the property is constructed.

Manufacturers: There's a lot at stake here: even so early in the 21st Century,

India is too large a market to be ignored by transnational retail giants. From the

manufacturing company's perspective, the focus should be on producing good products,

and forging relationships with organised retail. Manufacturers need to draw a plan of

producing quality products and tie in with retailers. Indeed, the birth of organised retail

will also engender the creation of private labels and store-brands. Thus, if a

Vishveshwarya Institutes of Engineering & Technology 17


manufacturing company lacks the resources to build a brand, it can supply to a retail-

chain that has the resources to create a brand of its own.

Indian Consumers: And even as these developments were taking place, the

Indian consumer became more mature. Customer-expectations zoomed. Thus, at the

beginning of the New Millennium, retailers have to deal with a customer who is

extremely demanding. Not just in terms of the product-quality, but also in terms of

service, and the entire shopping experience.

Today, the typical customer who shops in a retail outlet compares the time spent at

the check-out counter with that at an efficient petrol station, and the smile of the counter-

person to that decorating the face of a Jet Airways' crew member. To cope with the new

customer, manufacturers have to focus on product quality and brand building. And

retailers, in turn, have to focus on the quality of the shopping experience.

In this millennium, like in the last, customers will want to spend time with their

family and friends. They may like to visit an outlet on weekends where everything will be

available under one roof. India will benefit from these developments because of increased

consumption through retailing and the corresponding increase in employment created by

retailing.

Retail organizations exhibit great variety and new forms keep emerging. There are

store retailers, non store retailers, and retail organizations.

Consumers today can shop for goods and services in a wide variety of stores. The

best-known type of retailer is the department store. Japanese department stores such as

Vishveshwarya Institutes of Engineering & Technology 18


Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature

art galleries, cooking classes, and children’s playgrounds.

The success of the retail stores, therefore, depends on customers’ reaction to the

retailing mix which influences the profits of the store, its volume of turnover, its share of

the market, its image and status and finally its survival.

Trends In Retail Marketing

At this point, I can summarize the main development retailers and manufacturers

need to take into account as they plan their competitive strategies.

In India the trends are mainly in three sectors. These sectors are:

Trends in retail marketing

Urban Suburban Rural

New retail forms and combinations continually emerge. Bank branches and ATM

counters have opened in supermarkets. Gas stations include food stores that make more

profit than the gas operation. Bookstores feature coffee shops.

Vishveshwarya Institutes of Engineering & Technology 19


The electronic age has significantly increased the growth of non store retailing

consumers receive sales offers in the mail and over television, computers, and telephones,

to which they can immediately respond by calling a toll-free number or via computer.

Competition today is increasingly intertype, or between different types of store

outlets. Discount stores, catalog showrooms, and department stores all compete for the

same consumers. The competition between chain superstores and smaller independently

owned stores has become particularly heated. Because of their bulk buying power, chains

get more favorable terms than independents, and the chains’ large square footage allows

them to put in cafes and bathrooms.

Today’s retailers are moving toward one of two poles, operating either as mass

merchandisers or as specialty retailers. Superpower retailers are emerging. Through their

superior information systems and buying power, these giant retailers are able to offer

strong price savings. These retailers are using sophisticated marketing information and

logistical systems to deliver good service and immense volumes of product at appealing

prices to masses of consumers.

Many retailers are even telling the most powerful manufacturers what to make; how

to price and promote; when and how to ship; and even how to reorganize and improve

production and management. Manufacturers have little choice: They stand to lose 10 to

30 percent of the market if they refuse.

Technology is becoming critical as a competitive tool. Retailers are using computers

to produce better forecasts, control inventory costs, order electronically from suppliers,

send e-mail between stores, and even sell to customers within stores. They are adopting

Vishveshwarya Institutes of Engineering & Technology 20


checkout scanning systems, electronic funds transfer, and improved merchandise-

handling systems.

Retail Marketing In India

There are various ways of making goods available to consumers like:

• Company to distributor to wholesaler to retailer to consumer

• Company to salesperson to consumer

• Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to

consumers. But in India the three layered system of distributor, wholesaler and retailer,

forms the backbone of the front-end logistics of most of the consumer-good companies.

There are a number of reasons behind this fragmented retail market. Some of the

major reasons being:

• Poverty and lower literacy levels.

• Low per capita income.

• Savings focused and less indulgence mindset.

• Poor infrastructure facilities like roads etc.

• Restrictions on intra-state good movement.

• High taxes.

• No exposure to media.

• High import duties on imported goods.

Vishveshwarya Institutes of Engineering & Technology 21


• FDI in retailing is not allowed.

• Retailing is not considered as a business or industry by the government.

• Hitherto none of the business schools in India were offering

specialized courses on retailing.

Vishveshwarya Institutes of Engineering & Technology 22


About CRM

Vishveshwarya Institutes of Engineering & Technology 23


Three key phases:

• 1. Customer Acquisition.

• 2. Customer Retention.

• 3. Customer Extension.

Three contextual factors:

• 4. Marketing Orientation.

• 5. Value Creation.

• 6. Innovative IT.

1. Customer Acquisition - This is the process of attracting our customer for the first

their first purchase. We have acquired our customer.

Growth - Through market orientation, innovative IT and value creation we aim to

increase the number of customers that purchase from us for the first time.

2. Customer Retention - Our customer returns to us and buys for a second time. We

keep them as a customer. This is most likely to be the purchase of a similar product or

service, or the next level of product or service.

Growth - Through market orientation, innovative IT and value creation we aim to

increase the number of customers that purchase from us regularly.

3. Customer Extension - Our customers are regularly returning to purchase from us.

We introduce products and services to our loyal customers that may not wholly relate to

Vishveshwarya Institutes of Engineering & Technology 24


their original purchase. These are additional, supplementary purchases. Of course once

our loyal customers have purchased them, our goal is to retain them as customers for the

extended products or services.

Growth - Through market orientation, innovative IT and value creation we aim to

increase the number of customers that purchase additional or supplementary products

and services.

4. Marketing Orientation - means that the wholes organisation is focused upon the

needs of customers. Customer needs are addressed by the Three Levels of a Product

whereby the organisations not only supplies the actual, tangible product, but also the

core product and its benefit, and also the augmented product such as a warranty and

customer service. Marketing orientation will focus upon the needs of consumers for all

three levels of a product. (N.B. 'market' orientation and 'marketing' orientation are not

the same).

5. Value Creation - centres on the generation of shareholder value based upon the

satisfaction of customer needs (as with marketing orientation) and the delivery of a

sustainable competitive advantage.

6. Innovative IT - is exactly that - Information Technology must be up-to-date. It should

be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software

are not the entire story for CRM, it is vital to its success. CRM software collects data on

consumers and their transactions. Huge databases store data on individuals and groups of

individuals. In some ways, CRM means that an organisation is dealing with a segment of

Vishveshwarya Institutes of Engineering & Technology 25


one person, since every consumer displays different purchasing habits and preferences.

Organisations will track individuals, and try to market products and services to them

based upon similar buyer behaviour seen in other individuals (e.g. When Amazon tells

you that customers that viewed/bought the same product as you, also bought another

product).

CRM In Retail Marketing( Big Bazaar)

Customer relationship activities have the most impact on customer retention. Every

customer service encounter has the potential to gain repeat business or have the

opposite effect. The expectation of personalized, relevant offers and service is

becoming a primary driver of customer satisfaction and retention in financial

services.

What Exactly Is CRM?

The first thing you find when looking into the world of Customer

Relationship Management is the number of different definitions in use today.

Here is the one I have chosen for this Project:

• "CRM is the business strategy that aims to understand, anticipate, manage and

personalize the needs of an organization's current and potential customers" --

PWC Consulting

Vishveshwarya Institutes of Engineering & Technology 26


• CRM is a business strategy, one that puts the customer at the heart of the

business.

• “That’s nothing new” I hear you say, and you would be right. Good business

people have always understood the relationship between happy customers that

come back again and again and creating long term, sustainable profitability. Big

Bazaar has realized this and applied this to effect.

One just needs to think of the local shop owner who knew everyone of his customer’s

names, birthdays and particular ailments to prove that point. What is new is that there

now exists the technology to enable this customer-centricity on a much larger scale .

(“Come To Big Bazaar- Isse Sasta Aur Achha Kahin Nahin”)

It is said that a successful CRM implementation will allow your Customer Service, Sales

and Marketing people (and anyone else in your organization) to have a holistic view of

each and everyone of your customers. In theory this will enable them to make quick,

informed decisions, create cross selling and up selling opportunities, measure marketing

effectiveness and deliver personalized Customer Care. Sound’s great doesn’t it !!!

Vishveshwarya Institutes of Engineering & Technology 27


The History of CRM

Following on from Enterprise Resource Planning or ERP (the business strategy that

promised to automate the “back-office”), the term CRM was first coined in the mid-

1990s. CRM in those days referred to the software used to help businesses manage their

customer relationships. From sales force automation software (SFA) that focused on

customer contact management to integrated knowledge management solutions, these

were the early foundations of CRM.

The last couple of years have seen the term broaden to encompass a more strategic

approach and the investment of billions of dollars worldwide into CRM solutions and

services has followed.

First Things First

Successful CRM always starts with a business strategy, which drives change in the

organization and work processes, enabled by technology. The reverse rarely works. The

key here is to create a truly Customer-Centric philosophy that touches every point and

more importantly every person in the company. From CSR to CEO everyone must live

and breathe customer focus for all of this to work.

Vishveshwarya Institutes of Engineering & Technology 28


The Right Technology

It is estimated that the global market for CRM services and solutions is currently worth

$148 billion. That means a lot of choice when selecting your technology - from web-

based solutions aimed at small businesses with less than 10 employees to solutions

suitable for multi-national enterprises with millions of customers.

The Future

CRM has already made a big impact in the world of Customer Service and will continue

to do so. As more and more companies become customer-centric those that fail to do so

will lose competitive advantage. As technology increases to develop at a startling rate the

key emphasis will be how we can fully utilise it within our business.

However let's not lose sight of the fact that Customer Relationship Management is about

people first and technology second. That’s where the real value of CRM lies, harnessing

the potential of people to create a greater customer experience, using the technology of

CRM as the enabler.

Vishveshwarya Institutes of Engineering & Technology 29


Advantages Of CRM for Big Bazaar

Using CRM, a the management of Big Bazaar can:

 Provide better customer service

 Increase customer revenues

 Discover new customers

 Cross sell/Up Sell products more effectively

 Help sales staff close deals faster

 Make call centers more efficient

 Simplify marketing and sales processes

By applying this methodology Big Bazaar learned more about customers' needs and

behaviors in order to develop stronger relationships with them. They implemented CRM

as a process that brought together lots of pieces of information about customers, sales,

marketing effectiveness, responsiveness and market trends.

CRM helps businesses use technology and human resources to gain insight into the

behavior of customers and the value of those customers.

Vishveshwarya Institutes of Engineering & Technology 30


Challenges For Big Bazaar in CRM implementation:

 .Difficulty in acquiring new customers can be a result of any one, or

combination, of the following problems.

 .Inaccurate and Slow Quoting Organizations may be unable to accurately estimate

and quickly deliver successful proposals, often leading to missed opportunities,

bad profit margins and upset prospects.

 Lack of Product Knowledge Within their Sales Force

 Problems can arise when products were sold that didn’t fit company's profitability

strategy such as selling a customer one product when another would be better for

the customer and more profitable for you.

 Difficulty and Delay in Updating Pricing and Product Information

 When the sales force is relies on incomplete product, pricing and customer

information, then they're probably not selling the most profitable products you

offer.

 Customers prefer a combination of differing channels in which to deal with your

company. Self-service on the web can even be done for complex products. Plus,

self-service on the web offers retail banks the opportunity to shift cost out to the

customer.

Vishveshwarya Institutes of Engineering & Technology 31


Customer Satisfaction Is Big Bazaar

“The degree of customer satisfaction you deliver determines the level of long-term

success you will achieve in business.” - --- Training Mantra for Sales Force

Customer Satisfaction their Top Priority

Don't just make sales. Create customers - satisfied customers. In addition to the

immediate profit they provide on the first sale, satisfied customers help you build

your business in 2 other important ways:

1. They become a reservoir of repeat buyers. For some businesses that means repeat

buyers for more of the same product or service. For every business, it means buyers

for additional products and services.

2. They automatically refer more business to you from their friends and business

contacts. This is highly profitable business for you because it doesn't cost you any

time or money to get it.

Whatever they Promise More, they Deliver

Never make any promises you can't (or won't) keep. Nothing alienates customers

faster than getting something less than they expect from a business transaction. They

won't do business with you again. And they will tell everybody they know about their

unhappy experience - causing you to lose future customers.

Vishveshwarya Institutes of Engineering & Technology 32


Always Give Customers More Than They Expect

"Over deliver" on quality and service. Always exceed your customers' expectations. You

will win their long term loyalty. It also makes it difficult for competitors to steal

customers from you - even if they have lower prices. Customers will not risk an uncertain

experience with a competitor when they know they will get more than they expect from

you.

Customers know how much they value them:

Let your customers know you are always thinking about them. Communicate with them

regularly. For example, create some special deals just for your existing customers. And

announce new products or services to them before you announce them to the general

market.

Vishveshwarya Institutes of Engineering & Technology 33


PROCESS OF CRM

Customer Relationship Management (CRM) is the process of bringing the

customer and the company closer together. There are many different areas in

which Customer Relationship Management can be implemented. The goal of

CRM is to help a company maintain current customers, as well as gain new

customers.

Targeted Marketing:Targeted marketing is accomplished through collecting

information about the customer. This information can be buying habits or simply

demographics. The idea behind this is that a business analyzes what a customer

buys and then markets specific products to that customer based on his or her

buying habits. Businesses track buying habits using discount cards, and special

store credit cards. Targeted marketing can also be implemented on the Internet.

Amazon.com has product recommendations based on buying habits, and product

ratings. Customers can also be sent e-mails that market targeted products.

Marketing the right products to the right customers can significantly increase a

business' sales with minimal associated costs.

Vishveshwarya Institutes of Engineering & Technology 34


CONSUMER BEHAVIOR

Options: Consumers are more likely to choose an alternative after a

relatively inferior option is added as a choice. For example, Simonson says,

participants in one study were given a choice between $6 and an elegant Cross

pen. A second group chose among $6, the same Cross pen, and a second pen

that was clearly less attractive than the Cross pen. As was predicted, the

addition of the unattractive pen increased the share of the Cross pen at the

expense of the $6.

Alternatives: Consumers prefer alternatives that are compromise choices.

Given a choice between two alternatives, one priced lower than the other, the

addition of a third choice, priced higher than both, will increase the market share

of the more expensive of the original two. This finding suggests that companies

can increase their overall sales and shift purchases to higher-margin items by

carefully designing the sets of alternatives that their customers consider.

Vishveshwarya Institutes of Engineering & Technology 35


Floor Displays:Buyers are averse to choosing the lowest-quality alternative in

sets of three or more choices. One of the implications of this finding is that

marketers of well-known, high-priced brands should encourage retailers to

organize floor displays by model type, whereas marketers of lesser-known, lower-

priced brands should prefer organization by brand.

Brands:Consumers who think about the possibility that their purchase

decisions will be wrong are more likely to choose better-known brands. In a test

case, Simonson showed that consumers debating between a better-known, more

expensive brand and a lesser-known, less expensive brand expect to feel greater

regret if they err by choosing the cheaper option. Indeed, after thinking about the

possibility of regret, consumers were more likely to select the better-known

brand. Kodak film has capitalized on this finding with an advertising campaign

that asks consumers to consider how they would feel if they bought cheap film

and their pictures didn't turn out.

Preferences:Consumers tend to select variety when buying multiple products

for consumption at a later time. In each of three weeks, Simonson asked a group

of respondents to select one of six familiar snacks for immediate consumption. A

second group was asked to pick three snacks -- one for immediate consumption

and one for each of the next two weeks. Both groups were told that they could

pick the same snack as many times as they wished. Those in the first group tended

Vishveshwarya Institutes of Engineering & Technology 36


to select the same snack all three times, whereas most in the second group

selected three different snacks.

Product Modifications:Modifying a product with a feature or premium that is

of little or no value to the consumer, even without raising the price, may actually

decrease sales. When consumers are uncertain about their preferences, a product

that offers an unneeded add-on (such as an offer to purchase a Pillsbury

Doughboy collector's plate) provides them with a reason for rejecting it.

While marketing professionals can use these findings to influence consumer

decision making, consumers, too, can benefit by understanding their own

behavior. "One of the points of our research is to inform consumers about some of

the factors that influence their decisions," Simonson says. "With such knowledge,

they may be able to make better, more thoughtful decisions."

Vishveshwarya Institutes of Engineering & Technology 37


Vishveshwarya Institutes of Engineering & Technology 38
RESEARCH METHODOLOGY
Research: Research is in common parlance refers to search of knowledge. The main

aim of research is find out the truth, which are hidden.

Research methodology is way to systematically solve the research problem. Research

Methodology has many dimension and research methods constitute a part of the research

methodology. Thus research methodology does not only talk of research methods but also

considered the logic behind the methods used in the context of research study and explain

why we are using particular technique or method and why we are not using other so that

research results are capable of being evaluated either by the researcher himself or by

other. Research Methodology can be expressed and explained to research process.

Research Process is a sequential description of the entire research work including

research methodology.

This section includes the over all research design, the data collection method and

analysis procedure.

(1) Type of Study: Descriptive type of study is conducted

(2) Data Collection Process: It is one of the most complicated and tough jobs for

my research work though I thoroughly enjoyed it. For data collection it is scheduled

before survey work, like which to get feedback thus primary and secondary sources of

data collection were-

Primary sources:

Main source of information is questionnaire with personal interview.

Vishveshwarya Institutes of Engineering & Technology 39


Questionnaire:

It is the combination of a number of questions, which are of two types such as

Open-ended: In it the respondent gives answers in descriptive way.

Close ended: In it the respondent gives answers in Yes or No types.

I have used Questionnaire as a data collection tool.

Secondary sources:

Past records, files, Internet, web portals of the big bazaar.

(3) Sample size:

Sample size refers to the number of item to be selected from the universe to constitute

a sample algebraically, let the population size be N,

Sample size is n (n<N). I have collected data from 100 customer of big bazaar. So my

sample size is 100.

(4) Sample unit: Each respondent taken as a single unit

(5) STATISTICAL TOOLS AND TECHNIQUES USED:

After completing the survey as a first step towards analyzing the data, I prepared a

master chart,

Vishveshwarya Institutes of Engineering & Technology 40


Which helped me to tabulate the data, and proved useful in future analysis as it

contained the Data in a concise and a far more understandable form?

After properly tabulating the data I analyzed each question of the questionnaire using

frequency Distribution and statistical diagram like bar-diagram, pie-diagram etc.

Vishveshwarya Institutes of Engineering & Technology 41


Vishveshwarya Institutes of Engineering & Technology 42
DATA ANALYSIS & INTERPERTATION

RESULT OF SURVEY ON CRM IN RETAIL MANAGEMENT

(BIG BAZAAR)

1.Are you satisfied with the services provided by Big-Bazaar?

80

70

60

50

40 Series1

30

20

10

0
yes No can't say

Result:

From the above table it is clear that customers are satisfied with the services of Big

Bazaar because out of 100% customers 75% has given the positive answer in favor

of Big Bazaar.

Vishveshwarya Institutes of Engineering & Technology 43


2.How do you find the Shopper Assistant’s behavior?

75 15 10
HELPING NOT HELPING RUDE

80

70

60

50

40 Series1

30

20

10

0
helping not helping rude

Vishveshwarya Institutes of Engineering & Technology 44


Result:

From the above table it is clear that customer are satisfied with the attitude of the

shopper’s .Out of 100% customer all 75%customer are satisfied.

Vishveshwarya Institutes of Engineering & Technology 45


3.How would you rate the Shopper Assistant’s behavior on the scale of

five?

40 25 20 10 5
5 4 3 2 1

45

40
35

30

25 rank
20 customers

15

10
5

0
1 2 3 4 5

Result:

Out of 100 customer,40customer have given the 5 marks

to shopper .

Vishveshwarya Institutes of Engineering & Technology 46


4.Do you find the Layout of Food-Bazaar helpful in Shopping Experience?

60 30 10
YES NO CAN’T SAY

70

60

50

40
Series1
30

20

10

0
yes no can't say

Result:

Out of 100% customer 60, have told that they like the layout of Big Bazaar while 30

told that they do not like very much.

Vishveshwarya Institutes of Engineering & Technology 47


5.What do you like most about Big-Bazaar ?

CUSTOMER SERVICES 54 CREDIT FACILITY 42

DELIVERY SERVICES 6

60

50

40

30

20

10

0
customer services credit fecility delivery fecility

Result:

Out of 100% Customer ,4% customers like delivery services of Big Bazaar while

42% customers like the credit facility&54% customers like customer service. So it is

clear that customer wants credit services most.

Vishveshwarya Institutes of Engineering & Technology 48


6.How often do Big-Bazaar services exceed your expectations?(Customer

Delightness)

ALWAYS 45 SOMETIMES 33 NEVER 22

50
45
40
35
30
25 S eries 1
20
15
10
5
0
A lway s S om etim es Never

Result:

Out of 100% Customer, 45% customers said that Big Bazaar always provide better

services &it exceed their expectation.

Vishveshwarya Institutes of Engineering & Technology 49


7. Do you think that Big-Bazaar follow the ethical Mktg. Practices like

right pricing, right quality and right quantity?

55 33 12
YES NO CAN’T SAY

60

50

40
Series1
30

20

10

0
Yes No can't say

Result:

Out of 30 customer,25 customers have told that BigBazaar following the ethical

marketing practices.

Vishveshwarya Institutes of Engineering & Technology 50


8 What comes first when you think about Food–Bazaar?

16
PRICE 74 QUALITY

Vishveshwarya Institutes of Engineering & Technology 51


perception about food bazaar

can'tsay
10%

Quality
16%
Price
Quality
can'tsay

Price
74%

Result:

Customer said that when they think about Big Bazaar they think about price. out of

100% customer 74% customer have told this while 16% customer said that they

think about quality.

Vishveshwarya Institutes of Engineering & Technology 52


9 How would you rate theme–setting display of Food-Bazaar in

comparison to other?

35 32 28
Good Average Poor can’t say 5

40

35

30

25

20 Series1

15

10

0
Good Average Poor Can'tsay

Result:

Out of 100% customers, 35% customers said that Food Bazaar theme is good while

32% customer said that it is average &28% customer said that it is poor.

Vishveshwarya Institutes of Engineering & Technology 53


10. What is the most important criteria of selection for their Store Assistant

and Store Manager?

12
Pleasing Personality 5
Good Communication 25
Team Work

58
Commitment Toward Customer needs

60

50

40

Series1
30
Series2

20

10

0
Personality Communication Team work customer need

Vishveshwarya Institutes of Engineering & Technology 54


Result:

Out of 100% retailers, 58% has given importance to the store manager who have

the quality of identifying customer need, while 12% given importance to team work

&25% good communication skills.

Vishveshwarya Institutes of Engineering & Technology 55


11.Do you display all the entire stock on the rack or some amount is kept for

contingence? (Inventory availability)

Applicable to all product Applicable to some product


77 18

Only to FMCG
5

90

80
70

60
Series1
50
Series2
40
Series3
30

20

10

0
Applicable to all product Applicable to some product Only on FMCG

Result:

Out of 100% retailer, 77% have told that they show the entire product to customer,

while 18 have told that show some product to the customer.

Vishveshwarya Institutes of Engineering & Technology 56


12. How do you decide of point of purchase counter?

15 15 65 5
Brand Price Customer preference Product visibility

70

60

50

40
Series1

30 Series2

20

10

0
Price Brand Customer prefrence Product visibility

Vishveshwarya Institutes of Engineering & Technology 57


RESULT:

Out of 100% Retailer, 65% has said they use The customer preference for point of

purchase counter while 15% said that they use brand & price, 5% product

visibility.

13What is the preference order for promotional activity to create customer

awareness?

48 25 14 13
Newspaper Radio jingle Advertising Banner

Vishveshwarya Institutes of Engineering & Technology 58


50
45
40
35
30
25 Series1
20
15
10
5
0
News paper Radio T.V. Banner

Result :

Out of 100% retailer, 48% has told that they use Newspaper as their main tool for

promotional.

Vishveshwarya Institutes of Engineering & Technology 59


14. How would you analyses the customer satisfaction ?

Number of repeat purchase 65 Loyalties benefit 22 Customer 13

database

70

60

50

40
Series1

30 Series2

20

10

0
Repeat purchase Loyality Other benefits

Result:

100% Out of Retailer, 65% retailer said that they get the customer satisfaction by

repeat purchase,

Vishveshwarya Institutes of Engineering & Technology 60


15.What is your method of analyzing customer satisfaction?

67 15 18
Feedback No. of repeat purchase interaction of manager

with customer

80

70

60

50
Series1
40
Series2
30

20

10

0
Feedback Repeat purchase interaction to employees

Result :

Out of 100%retailer, 67% have told that analyzing the customer satisfaction

through the feedback of customer.

Vishveshwarya Institutes of Engineering & Technology 61


Vishveshwarya Institutes of Engineering & Technology 62
Findings

In this survey the findings are given below:

1. Most of the stores are targeting almost all the segments of the society with their USP

being “Price benefit”

2. All the stores are in Prime Location.

3. Every Big Bazaar outlet have motivated and trained sales force.

4. Large variety of products are available ranging from clothes, food items , electronic

goods etc.

5. Staff are provided constant training for various pecularities of customer behaviour.

6. Some of them offer discount sales and also send greetings to its loyal customers.

7. Not much difference in the Layout of the floor designs in the various branches. They

try to maintain a similarity to maintain comfort levels of customers.

8. These stores maintain Word of Mouth.

9. Customers are satisfied with the provided services.

10. International shopping experiences can be achieved from these stores.

Vishveshwarya Institutes of Engineering & Technology 63


Vishveshwarya Institutes of Engineering & Technology 64
SWOT Analysis of Big Bazaar

Strengths

 Prime location

 Large floor space allowing for better visual merchandising

 Large area also allows to stock a large variety of products under one roof

 Experienced and competent management

 Highly trained and motivated sales force

 Brand equity

 Large scale operations in various cities throughout the country allows them to

reap the benefits of “economies of scale”

Weaknesses

 Large scale of operations sometimes acts as a barrier to personalized customer

relations

 Large scale operations lead to reduced flexibility by increasing the amount of

overheads and a huge commitment in terms of fixed costs

 A large organization structure leads to delayed decisions. This can prove fatal

for a business in the dynamic fashion industry. Mumbai, this fact sometimes

results in delayed decisions in adapting to changing market trends

Vishveshwarya Institutes of Engineering & Technology 65


Opportunities

 Apart from the metros, cities like Ahmedabad, Pune, Lucknow, Indore and

Coimbatore have shown substantial retail presence. Most sport modern retail

formats like supermarkets, department stores and specialty chains. These

markets are expected to show exponential growth in the next few years. Thus

Food Bazaar has the opportunity to explore new markets

 According to the Consumer Outlook study, consumers are generally satisfied

with the service that organized retailers extend to them. More importantly,

they are increasingly regarding these organized retailers as providing `value-

for-money’. These findings indicate that large retailers will capture most of

the higher consumer spending

 Increasing penetration of the internet into Indian homes has provided Food
Bazaar Mall to break the geographical barriers and to increase their customer

base. The entry into online retailing, would, in fact, expand the product

categories available to the consumer

Threats:

 The time when retailers had to worry about competition only from their peers

down the street has come to an end. Food Bazaar is now facing increased

competition in the form of international retail chains that are making a beeline

towards the highly potential Indian markets. Moreover many big Indian

business houses are also vying a space in the Indian retail scene

Vishveshwarya Institutes of Engineering & Technology 66


Vishveshwarya Institutes of Engineering & Technology 67
LIMITATION

• The topic was very vast topic yet very important also.

• Due to time restraints it was not possible to study in depth to get knowledge what

practices are followed at Big Bazaar.

• Nevertheless, many facts and data are such that they are not to be disclosed

because of the confidential nature of the same.

• Hence because of that I cannot express any opinions upon various issues which it

limits the scope of my study.

• Duration of the project work was not sufficient.

Vishveshwarya Institutes of Engineering & Technology 68


Vishveshwarya Institutes of Engineering & Technology 69
CONCLUSION

“Customer Service is a critical factor for keeping your clients coming

back and ensuring they’ll refer you to others”.

1: Growing your business will be a difficult task at best if you don’t perform, meet

and exceed your client’s expectations, and provide service that creates customers for

life.

2: Customer service is all about the customer’s perception. You have to do more than

just get the job done. You must deliver on all the things (big and small) that affect the

relationship with your client. Consider opportunities for improvement in the

following areas.

3: Setting/Reviewing Expectations: Do you work with your client to set clear,

appropriate, realistic expectations that you can always meet or exceed? Are you clear

about the responsibilities (both yours’ and the client’s), timelines, and expectations of

results? Are you then willing to go back and review these expectations with the client

at key points along the way?

4: Communication: Do you have mechanisms in place to ensure you’re

communicating with clients at every stage of the engagement, from the sales process

through to completion of the project? Being clear about where you’re at, what’s been

completed, what’s coming up next, who’s responsible, what results you can expect,

etc.? Has the client ever had to ask you for these things?

Vishveshwarya Institutes of Engineering & Technology 70


5: Organization: Are you organized? Punctual? Reliable? When you show up to work

with your clients, have you done the work and are you prepared to make them feel

comfortable and taken care of? Even though you’ve done it hundreds, maybe

thousands of times before, do you take the time to organize and prepare to make it the

best client experience possible?

6: Committing to the Little Things: Don’t ever dismiss the power of all the little

things. Together they can make all the difference and really separate you from the

competition. Returning calls and emails in a timely manner. Providing useful

information to folks on a regular basis. Showing appreciation for your clients through

things like thank you notes, exclusive client-only briefings, and open house, etc.

Clearly these are not the only relevant areas for creating great customer service, I

assure you. But these were some of the Factors which might

provide a boost to the sales figures, though I am sure the organization would have

already implemented most of these measures already.

Vishveshwarya Institutes of Engineering & Technology 71


Vishveshwarya Institutes of Engineering & Technology 72
RECOMMENDATIONS AND SUGGESTIONS

1) Convert your customers into publicity agents. Develop an incentive for them to tell

associates and friends about the value of your products or services. An endorsement

from them is more effective than any amount of advertising - and it is much cheaper.

2) Surprise your customers with unexpected value. If you sell products, include an

"unadvertised bonus" with every order. If you sell services, get into the habit of doing

something extra for every customer or client without charging for it.

3) Reward them each time they refer someone who becomes a customer. Your reward

can be as simple as a credit toward their next order from you.

4) The management of Big Bazaar can improve their understanding of the role and

capabilities of advertising to improve customer relation and enhance loyalty. This

understanding should in turn results in a more effective and more efficient advertising

campaign.

6) Schemes: In store Promotions:The people visiting the store should be encouraged

to visit the store again and again. So it is necessary to delight the shoppers with the

shopping experience. It has been observed in international shopping malls that there

are in-store promotions like lucky draws for entrants surprise winners and so on at

random

Vishveshwarya Institutes of Engineering & Technology 73


Big Bazaar-Marketing Mix

Product Branding Price


Packaging Cost of goods
Product Design Business Expenses
Assortment Gross Margin
Services Profit
Promotion Distribution
Advertising Logistics
Personal Selling Store Location
Sales Promotion Site Evaluation
Public Relations Transportation
Visual Merchandising Storage of goods

They seem to follow this to the core for effective Customer reach and encourage
customer loyalty.

Vishveshwarya Institutes of Engineering & Technology 74


LOCATION OF BIG BAZAAR IN INDIA

. Big Bazaar Kolkata ( VIP Road)

Address:
Parvati Vihar, 52/6 V.I.P.Road, Baguihati, Kolkata
Phone no. (033) 25703651 / 3655
Store Opening Date 11 Oct 2001
Space : 25,000 - 30,000 sq.ft.

2. Big Bazaar Abid's Hyderabad


Address Maheshwari Palace Mall, Palace Talkies Compound, #4-1- 833,
Abids, Hyderabad.
Phone no. (040) 4758385/ 8376/ 8377 / 8378
Store Opening Date 14 Oct 2001
Space 43,500 - 60200sq.ft.

3. Big Bazaar Bangalore:


Address Salapuria Towers,#22 , Koramangala Industrial Layout, Hosur Road,
Bangalore.
Phone no. (080) 25520889/25520751
Store Opening Date 8 Nov 2001
Space 36,000 sq.ft.

4. Big Bazaar Mumbai (Lower Parel)


Address Phoenix Mills Compound, 462, Senapati Bapat Road, Lower Parel,

Mumbai-400 013.
Phone no. (022) 56626703 - 4
Store Opening Date 13 July 2002
Space 40,000 sq.ft.

5. Big Bazaar Mulund (Mumbai)

Vishveshwarya Institutes of Engineering & Technology 75


Address C/O Runwal Arcade, Opp Richardson Factory, LBS Marg, Near
Mulund(West),
Mumbai 400 080
Phone no. (022) 55550606
Store Opening Date 19 April 2003
Space 56,000 sq.ft.

6. Big Bazaar Gurgaon


C/O Sahara India Commercial Corporation Ltd., Sahara Mall, Main
Address:
Mehrauli Gurgaon Road, Gurgaon. Haryana.
Phone no. (0124) 5003330
Store Opening Date 1 June 2003
Space : 45,000 sq.ft

7. Big Bazaar Nagpur


Address: Landmark Dhantoli Wadi Road, Nagpur
Phone no. (95712) 25620201
Store Opening Date 18 Oct 2003
Space : 48,600 sq.ft.

8. Big Bazaar Ahmedabad


Rudra Point, Near Isckon Temple, Gandhi Nagar-Sarkhej Highway,
Address:
Ahmedabad.
Phone no. (079) 55305300
Store Opening Date 21 Feb 2004
Space : 55,000 sq.ft.

9. Big Bazaar Bhubaneswar:


Address: Forum, 89, Kharavelnagar, Unit-III, Bhubaneswar-751001, Orissa.
Phone no. (0674) 3217780.
Store Opening Date 27 March 2004
Space : 40,000 sq.ft.

10. Big Bazaar Nasik


Address The Zone, College Road, Nasik 422 005
Phone no. (0253) 2318218 - 28
Store Opening Date 19 June 2004
Space 26,000 sq.ft.

11. Big Bazaar Kolkata(Hiland Park)


Address The Metropolis, 6 Hiland Park, 1925 Chakgaria, P.S.Jadavpur, Kolkata.
Phone no.
Store Opening Date 4th December 2004
Space 26,000 sq. ft.

Vishveshwarya Institutes of Engineering & Technology 76


12. Big Bazaar Ahmedabad (Kankaria)
Ahmedabad City Mall, New Cotton Mills Compound, Outside Raipur
Address
Gate, Opp. Arya Seva Samaj Hall, Kankaria Road, Ahmedabad.
Phone no.
Store Opening Date 24th Dec 2004
Space 80,000 sq. ft.

13. Big Bazaar Gaziabad(EDM)


Address EDM, Plot No .1 Kaushambi, Gaziabad
Phone no. 0120 3001300/301
Store Opening Date 25th Dec 2004
Space 60,000 sq. ft.

14. Big Bazaar Durgapur


Address Durgapur City Centre, Durgapur. Pin - 713216
Phone no. (95343) 2543021
Store Opening Date 5th April 2005
Space 16,000 sq.ft.

15. Big Bazaar Kandivali


:Growel Plaza, Akurli Road,Off Western Express Highway, Kandivali(E)
Address
Mumbai-400101
Phone no.
Store Opening Date May 14, 2005
Space 65,000 sq.ft.

16. Big Bazaar -Lake City Mall (Thane)


Lake City Mall (Thane), Kapurbawdi Junction ,Ghodbunder Road, Thane
Address
(W), Mumbai-400080
Phone no. 022-2542 6644
Store Opening Date May 14, 2005
Space 50,000 sq.ft.

17. Big Bazaar Banshankari


Address 92/9, 80 Feet Road, BSK III Stage, Kathariguppa, Banshankari Bangalore
560085
Phone no. 080-5514 9000
Store Opening Date June 24, 2005
Space 94,120 sq. ft.

Vishveshwarya Institutes of Engineering & Technology 77


18. Big Bazaar Sangli
New Pride Multiplex Near CircuitHouse, Madhav Nagar Road Vakharbhag,
Address Sangli 416416,
Bangalore 560085
Phone no. 0233-262 4141
Store Opening Date June 29, 2005
Space 28,000 sq. ft.

19. Big Bazaar Inderlok


Address Metro Mall, Inderlok, Delhi
Phone no.
Store Opening Date July 1, 2005
Space 29,700 sq. ft.

20. Big Bazaar Lucknow


Address Sahar Ganj, Shahnajaf Road Hazratganj, Lucknow
Phone no.
Store Opening Date Nov 17, 2005
Space 60,000 sq ft

21. Big Bazaar Indore


Treasure Island ,11 Tukoganj Main Road, Indore 452001
Address

Phone no. 0731-3011300


Store Opening Date Dec 23, 2005
Space 50,000 sq ft

22. Big Bazaar Pune


Address Fun n Shop Building , Fatima Nagar, Solapur Road, Pune

Phone no. 020-5642 0500


Store Opening Date Dec 17, 2005
Space 36,000 sq ft

Vishveshwarya Institutes of Engineering & Technology 78


23. Big Bazaar Vizag
Address GV Manor, Beside Sangam
Sharat Theatre, Station Road
Dwarkanagar, Vishakapatnam 533016

Phone no.
Store Opening Date October 5, 2005

Space 47,000 sq ft

24. Big Bazaar Pune


Netaji Subhash Place, Metro
Station, Ansal MGF Metro Plaza
Address Wazirpur 110034

Phone no. 011 -3952 8244


Store Opening Date July 22, 2005
Space 35,000 sq ft

25. Big Bazaar BMTC, Banglore


Double Road, BMTC Bus Stand ,Near Lalbagh Main Gate, Bangalore
Address

Phone no.
Store Opening Date Apr 7, 2006
Space 42,000 sq ft

26. Big Bazaar at Citi Gold Multiplex, Ahmedabad


Address Citi Gold Multiplex, Bapu Nagar, Ahmedabad
Phone no. :
Store Opening Date : April 14, 2006
Space : 30,000 sq ft

27. Big Bazaar at Star & Sitara at Banshankari, Bangalore


Address Big Bazaar, 3rd Flr, Banshankari, Banglore
Phone no.
Store Opening Date April 20, 2006
Space 30,000 sq ft

Vishveshwarya Institutes of Engineering & Technology 79


Vishveshwarya Institutes of Engineering & Technology 80
Vishveshwarya Institutes of Engineering & Technology 81
QUESTIONNAIRE

1.Are you satisfied with the services provided by Big-Bazaar?

YES

NO

CAN’T SAY

2.How do you find the Shopper Assistant’s behavior?

HELPING

NOT HELPING

RUDE

3.How would you rate the Shopper Assistant’s behavior on the scale of five?

Vishveshwarya Institutes of Engineering & Technology 82


4

4.Do you find the Layout of Big-Bazaar helpful in Shopping Experience?

YES

NO

CAN’T SAY

6.What do you like most about Big-Bazaar ?

CREDIT FACILITY

TRANSPORTATION FACILITY

DELIVERY SERVICES

Vishveshwarya Institutes of Engineering & Technology 83


7.How often do Food-Bazaar services exceed your expectations?

ALWAYS

SOMETIMES

NEVER

8. What comes first when you think about Food–Bazaar?

PRICE

QUALITY

9. How would you rate theme–setting display of Food-Bazaar in comparison to other?

GOOD

Average

Poor

Can’t say

Vishveshwarya Institutes of Engineering & Technology 84


0.What is the most important criteria of selection for their Store Assistant and Store

Manager?

Pleasing Personality

Good Communication

Team Work

Commitment Toward Customer needs

11.Do you display all the entire stock on the rack or some amount is kept for

contingence?

Applicable to all product

Applicable to some product

Only to FMCG

12.How do you decide of point of purchase counter?

Brand

Price

Customer preference

Product visibility

13. What is the preference order for promotional activity to create customer awareness?

Newspaper

Radio jingle

Advertising

Banner

Vishveshwarya Institutes of Engineering & Technology 85


14. How would you analyze customer satisfaction?

Number of repeat customer

localities benefit

customer database

15. What is your method of analyzing customer satisfaction?

Feedback

No. of repeat purchase

Interaction of manager with customer

Vishveshwarya Institutes of Engineering & Technology 86


Vishveshwarya Institutes of Engineering & Technology 87
Bibliography

• Marketing Management
- Philip Kotlar

• Research Methodology
- C. R. Kothari

• Retail Marketing
- J.A.Lamba

• Customer Relationship Management


- Jagdish and Seth

• www.indiainfoline.com

• www.google.com

• www.businessline.com

Vishveshwarya Institutes of Engineering & Technology 88