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BIG BAZAAR

Presented by : Deepesh Belwal Richa Sharma Satyabrata Rath Siddhartha Basu Umang Dubey

STRUCTURE OF BIG BAZAAR

Store manager

HR

Department manager

Marketing division

Finance and accounting

Facilities and Administration

Food items

General merchandise

Warehouse

Non food items(Personal and home care)

Cashing

Customer Service desk

SERVICE BLUE PRINT FOR BIG BAZAAR

SEGMENTATION:
Big Bazaar targets higher and upper middle class customers. The large and growing young working population is a preferred customer segment. Big Bazaar specifically targets working women and home makers who are the primary decision makers.

TARGET SEGMENT:

the Big Bazaar targets itself directly at the average Indian's love of following the crowd and scrambling for a good discount.

POSITIONING

With a slogan of "Is se sasta aur accha kahin nahi!" ("Nowhere cheaper or better than this!"), they try them self to position as one stop shop for every thing.

Positioning

Organizational & Customer Value Matrix

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FOOD BAZAAR CUSTOMER BASE


Looking for extra benefit: usually seen during sale. Wants value for every rupee invested : Points out nitty-gritty issues Difficult to satisfy with the offers Doesnt require personal assistance

One time Purchaser(Devil Customer)

Occasionally shops and interested more in the offers and discount Shops less argues more :Voices dissatisfaction openly but still comes back for more offers. Difficult to handle but can be converted into loyal customers.

Repeat purchase

Time Consuming

Neighborhood residents Aware of the schemes and regularly visit the place Looks out for extra benefit like loyalty cards, total purchase discount ,points out dissatisfaction in a systematic manner. Happy to Shop usually comes back for more offers and discount but want extra benefits for loyalty. Offer extra benefits(Perceived or actual) for Consumers always look forsuggestions for improvement and correction.. the purchase they make and this concept is utilized by the Food Bazaar Resistant to change. Value Chain Retail format to achieve higher sales . Loyal Customer

THE CUSTOMER EXPECTATION PYRAMID


According to the paper by Chu and Pike on Customer strategy in retail chain(2002 the most important aspect for a retail chain customer was in-store experience and staff assistance whereas marketing and communication(promotion) had little impact on the customer satisfaction so accordingly we designed our feedback form to incorporate the values customer feel most important:

Customer Overall experience


In store Experience Facilities management Staff Support Product Communication and marketing

Music Lighting Temperature Cleanliness

Ease of moving Around Ease of finding a trolley Checkout Counter

Courteousness Knowledge and efficiency Presentation Cashier Interaction Cashier speed

Range Prices Quality Availability

Ease of finding a product

IN-STORE EXPERIENCE
The organized retail format has changed the way people shop today. Not only has it provided the ease of access and availability of product and service , the concentration is on the customers in store experience which cannot be provided in an unorganized retail via Delightful Music, Lively display and Lighting, Sanitation and hygiene and Ambience. Analysis: The results show that around 73% of the respondents are highly satisfied with the overall store experience and consider lighting of the store (Visibility)to be relatively better to other parameters. The overall customer responses shows high level of satisfaction among all the attributes measured.
180

Overall In Store Experience


160 Highly satisfied Dissatisfied Satisfied Highly dissatisfied 140 120 100 80 60 40

0% 14%

bad ok good

13%

73%
20 0 music temperature lighting cleanliness

Staff Support
In a customer oriented business, the personal interaction between the seller and customer plays an important role in the purchase decision thus several attributes of the staff involved in the process is considered to influence the customer. In food bazaar, the customer mainly interacts with staffs at three departments: Department Product Purchase department Cashing counter Checkout counter(CSD and security)
180 160 140 120 100 80 60 40 20 0

Function Product Knowledge and SP personality Billing time and interaction Query handling and delivery We can conclude that the customers are mostly satisfied with the support staff and ranked the services good with little scope of improvement required in the area of staff courteousness and product knowledge area and also certain training should be provided to the selling staffs in order to improve them over the cashier rating.

good bad Ok

MARKETING AND FACILITIES MANAGEMENT


Store management is very important so that the overall process can take place smoothly providing a good experience to the customer. As part of the instore marketing various displays, signage(department location) and product display are put up which help the easy navigation to the customer. Again, facilities like trolley as a the shopping cart which is facilitated by spacious moving area around the floor is provided. Misutilisation of space is a crime in a retail store so proper usage of the space is essential to provide benefit to the outlet as well as customer. So, the feedback provided would help us find solution to optimally utilize the floor space and provide more convenience for browsing the store for a satisfactory shopping experience.
120 100 80 60 40 20 0

ok bad good

Ease of moving around in the store Navigation

Ease of finding a product - Product Displays

Ease of finding a trolley/basket

Majority of respondents are happy about the product display and floor movement area The facility of trolley is also very efficient Some issues in navigation for some customer maybe due to peak hour shopping

THE PRODUCT

The most important factor which attracts the customer is the product portfolio provided by the store. The customer are attracted to a store because of the one stop shopping solution which Food bazaar provides through its various food and non food categories. In spite of the easy accessibility it is very essential to provide an uncompromising product with the following feature:

Large Portfolio Quality and Standard maintained Availability of the Product in the catalogue Value for money

PERCEIVED PRODUCT VALUE


140 120 100 80 60 40 20 0 Range Prices Quality Availability ok bad good

As seen the customer are satisfied by the overall feature and benefit provided by the product but certain inefficiency has been observed on the following points: Quality of product not maintained Prices perceived to be inflated Low replacement rate causing unavailability of Fast Moving product.

CUSTOMER REASONS OF DEFLECTION

As already mentioned the switching cost of customer in a retail outlet is very less and it is important to minimize the instances which can possibly lead to deflection of customer. It is unavoidable that certain situations arise where the customers are likely to be irritated but it is important to mitigate those inefficiencies and develop a flawless system of operation. As observed in food bazaar a lot of customer query and cases of issuance of credit note and cash refund(special cases) has been confronted which needs to be handled at the points it arises so that the customers are prompted to come back later happily. Customer Issue
barcode issue damage and defective Billing error discount not given

Department wise classification of issue


chefzone home care chill station personal care farm fresh staples GM

dislike

customer change of mind

10%

6% 2% 12% 18% 19%

14% 1% 18% 8%

19%

69%

4%

7PS OF SERVICE MARKETING MIX

PRODUCT MIX

FOOD

HOME & PERSONAL CARE

APPARELS

Formal wear Casual wear Night wear T-shirt Jeans Sarees Dress

Ready to eat Spices

CHILL STATIONS

Ready to cook Staples

Shampoo
Soap

Detergent Liquid Wash Creams Deodorants Utensils

International
Tea & Cofee

foods

Soft drink Packaged juice Milk Items Frozen foods Ice creams

Ethnic wears Party wear

materials

Home Cleaners Crockery

PRODUCT MIX (CONTD..)


Television sets Washing Machines Refrigerator Personal Care mBazaar Microwaves Small Appliances

FURNITURE BAZAAR

ELECTRONICS BAZAAR

Laptops
Computer Accessories Kitchen Appliances

FASHION & JEWELLERY

OTHERS SERVICES

Footwear Bazaar Beauty Care Navara Star Parivar Meena Bindre

Living Room Bed Room Kitchen Dinning Rooms Kids Room Paintings Decorative Items

Mr. right Bakery Loot Mart Tulsi Future Money Future Generali

PRICE
PRICING OBJECTIVE: Maximum Market Share

Value Pricing (EDLP - Every Day Low Pricing)


Promotional Pricing

LOW INTEREST FINANCING PSYCHOLOGICAL DISCOUNTING SPECIAL EVENT PRICING (Festive Offers)

Differentiated Pricing

TIME PRICING

Bundling

BUNDLING PSYCHOLOGICAL PRICING

LOW-INTEREST FINANCING

TIME PRICING
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Place
Known Presence Present in almost all the major Indian cities

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Promotion

Saal ke sabse saste 3 din Wednesday Sabse sasta din

Future Card (3% Discount)


Shakti Card (Women) Advertising (Print Ads, TV Ads, Radio, Hoardings)

Brand Endorsement
Exchange Offer Junk Swap Offer Point-of-Purchase Promotions

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Promotion (contd..)
Coupon Discount, more of the products at normal price, gift with purchase, competitions and prizes, money back offers and exchange offers, special occasions.

Below the line Promotion

Above the line Promotion

Giving advertisement in news papers, TV, Internet, (own website which gives online shopping services) Partnership with Bigflix, Big FM 92.7
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People
Makes for a customer-friendly atmosphere Employs close to 10,000 people and recruits nearly 500 people every month Well-dressed staff Use of technology like scenario planning for decision making Staff at store to keep baggage Security guards at every gate
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Multiple counters Trolleys to carry the items purchased Proper display / posters of the place Online Purchasing/Order tracking

Process

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Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system and available facilities.

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STAFF SUPPORT
Department
Product Purchase department Cashing counter Checkout counter(CSD and security)

Function
Product Knowledge and SP personality Billing time and interaction Query handling and delivery

In a customer oriented business, the personal interaction between the seller and customer plays an important role in the purchase decision thus several attributes of the staff involved in the process is considered to influence the customer. In food bazaar, the customer mainly interacts with staffs at three department.

Strengths

Weakness

SWOT
Opportunities Threats

Strengths One stop shop Benefit of early entry into the retail industry Cheap goods as no middleman Diversified business Better understanding of customers Provide perceived value to price sensitive customer. Standardized product

Weaknesses

Negative connotation of positioning strategy(inexpensive perceived as cheap) Maintenance of low customer turnover is difficult (Extraneous variable) Sub standard Quality of goods

Opportunities

Increased in working class(high disposable income) Paucity of time(work schedule) leading to one service provider Increase in lifestyle and shift of shopping location (Neighborhood to malls

Threats Low switching cost Heavy inflow of similar format store(inverse competition) Supply and demand constraints Reducing Margin

CRM INITIATIVES:

Membership cards Special discounts for regular customer Order on telephone Quick delivery Order tracking facilities online Customer care very efficiently Genuine products with warranty Free Shipping Convenient Payment Options 7 Days Delivery Guarantee Easy Returns, replacements and exchange facilities Gift vouchers.